Budget 2016: DIPP seeks views on 100% FDI in processed food marketing

NEW DELHI: The Department of Industrial Policy and Promotion is in the process of finalising the cabinet note following the budget announcement of allowing 100% foreign direct investment in marketing of processed food products.

DIPP has sought comments from the ministries of food processing, agriculture and the Department of Economic Affairs on this matter, a senior DIPP official told ET. A press note notifying the policy changes will be issued soon, he said.

The DIPP note will clarify on aspects such as the minimum investment required in backend infrastructure and opening up of e-commerce opportunities in the sector. The involvement of the state governments in implementing this move is yet to be ascertained.

“In addition to encouraging investment for the Make in India flagship programme, this measure is expected to give a boost to the agriculture sector,” said Radhika Jain, director at Grant Thornton Advisory.