India is set to receive investments of around $10bn in the food processing sector from domestic and foreign companies. Agreements related to the investment commitment are expected to be signed at the ’World Food’ event to be held in the country, according to a report by the Press Trust of India (PTI).
The details of the companies that have promised to invest in the sector were not disclosed. Metro Cash and Carry recently revealed its plans to open around 50 stores by 2020, increasing its footprint from the existing network of 24.
India Union Minister Harsimrat Kaur Badal was quoted by the news agency as saying: “We had kept a target of $10bn investment. More investment is likely to flow as we still have two to three weeks for the event.” On the proposed investment by foreign players, Badal said: “This is because ease of doing business in India seems like a reality to people who had to face multiple taxes, multiple rules and regulations across states.
Earlier this year, India rolled out a nationwide uniform tax reform goods and services tax (GST) in an attempt to simplify the tax structure in the country and improve compliance. The country already allows 100% foreign direct investment (FDI) in manufacturing and trading of food products produced domestically. Through the investment, the government intends to create more food processing infrastructure such as backward and forward linkages, as well as cold storages.