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Food retail reforms: Narendra Modi government mulls relaxing FDI rules
May 12, 2017
- The government is considering a proposal to ease foreign direct investment (FDI) guidelines in the retailing of food products to allow a certain percentage of locally-produced non-food items along with the edible products.
- Food Processing Minister Harsimrat Kaur Badal told FE her ministry has suggested that a foreign retailer is allowed to sell locally-produced non-food items worth 25% of its investments at the farm-gate level.
- However, a final decision will likely be taken after comprehensive consultations among ministries, including commerce and industry, food processing, and finance.
- The government has already announced two big rounds of relaxations in the FDI regime easing rules in over a dozen sectors ranging from real estate, pharmaceuticals, food marketing, aviation, defense to e-commerce and banking.
