News in brief:
– India aims to attract foreign investors and skilled workers to its food and beverage sector to achieve $100 billion in exports within five years.
– It is easing regulations and tax cuts, as well as allowing full foreign ownership in key industries while prioritising sustainability.
India wants foreign investors and workers to participate in its food and beverage sector as it sets its sights on achieving $100 billion in exports within five years.
According to a statement by Piyush Goyal, the country’s Minister of Commerce and Industry, the government will encourage full foreign ownership and management of foreign-owned enterprises. It will also ensure that relevant departments expedite processes, such as issuing work permits, to attract skilled labour.
The export target combines goods from the food and beverage, agriculture, and marine industries. A news report mentioned that India shipped $50 billion worth of such products in 2024.
In addition, the government’s spokesperson reiterated that sustainability is a key focus while boosting agricultural trade. It promotes organic farming and products by easing certification processes for businesses in this field while retaining measures to protect their integrity.
India is also reducing corporate tax for foreign companies by 5% to further entice investments in the country.
“The rules and regulations for both Foreign Direct Investment (FDI) in India and overseas investment by Indians will be simplified to facilitate foreign investments, nudge prioritization, and promote opportunities for using the Indian Rupee as a currency for overseas investments,” the country’s Finance Minister, Nirmala Sitharaman, said while presenting the annual budget before Parliament.
While the food and beverage industry will allow 100% foreign direct investment, the administration is increasing access for other sectors to as much as 74% in some cases.
This move is important for the country to take full advantage of its agricultural resources and human capital. A USDA report revealed that growth and investment in Indian agriculture and agribusiness have remained weak since the early 1990s. With consumer demand rising, the sector requires investment support to catch up.
