Along with many reforms brought by the government which is led by Mr. Narendra Modi, 100% FDI in processing, marketing and retailing of food industry in India has magnetized many food retailers worldwide. Giant retail firms from the U.K., Italy and Brazil are looking towards India as fortune and are ready to invest and expand their food brands in the country.
India’s Union Food Processing Minister, Harsimrat Kaur Badal, is affirmative about her meetings with the food retail biggies from U.K., viz. Harrods, Sainsburys, Tesco, Waitrose, Marks and Spencer, Partridges, Holland and Barrett. The Confederation of Indian Industry hosted a conference on foreign direct investment (FDI) in marketing of food products in which she shared that the international food retailers have positive outlook for investment in India and their foremost terminus for expansion is our nation.
Walmart, the American multinational retail firm, is also assessing the policy of 100% foreign direct investment in food sector and their CEO Krish Iyer alleges Walmart to be in India for the next century and further believes that these reforms can be ground breaking for the food processing segment of the country. Apart from this huge corporation, Mr. Avinash Srivastava, secretary in the ministry of food processing industry, told that some giant firms from Brazil have also articulated their curiousness in investing in Indian market.
Ms. Badal considers that the consumers in India are geared up for the global retailers as the average Indian expenditure on food is about 40% of their pocket. She further added that India’s food economy is accelerating at higher rate than the economy and Indian food and grocery market is positioned sixth in the world. This can also be the reason that India is luring many countries for investment and on 29th September she has been invited by Italian government to congregate food producers and retailers who are looking forward for an opportunity to invest in India.
The Indian Union Food Processing Ministry is all set to hold World Food Summit in January 2017 which would engross giant food retailers, processors, logistics, packaging firms and farmer producer. The ministry is confrontational about placing processed food products under exempt category of goods as per the proposed Goods and Services Tax system. Ms. Badal said that final decision would be taken by GST council but they would trail for the food products to be free from GST or be taxed at the least rates.