Foreign Direct Investment in India's Food Processing Sector Hits $368 Million from April to September

New Delhi, Dec 6 (NationPress) The food processing sector in India attracted foreign direct investment (FDI) amounting to $368.37 million this fiscal year (up to September), as disclosed in Parliament.

By country, Ireland contributed $83.84 million, followed by Singapore with $48.45 million, Mauritius at $41.65 million, and the United States with $38.60 million, according to Minister of State for Food Processing Industries, Ravneet Singh Bittu, in a written statement to the Lok Sabha.

Other notable investments came from Australia at $20.18 million and Mexico at $9.59 million during the April-September timeframe of the current financial year.

The cumulative FDI in the food processing sector for FY24 has reached $608.31 million, the minister reported.

This sector is being bolstered through initiatives such as the Pradhan Mantri Kisan Sampada Yojana, Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) scheme.

As part of PLISFPI, 213 projects have been finalized to date, generating jobs for approximately 289,832 individuals.

PLISFPI aims to foster the development of global food manufacturing leaders and enhance the visibility of Indian food brands in the international market. The scheme is set to be executed over a span of six years from 2021-22 to 2026-27, with a budget of Rs 10,900 crore.

Additionally, the ministry introduced the PMFME scheme to offer financial, technical, and business assistance for the upgrade of existing micro food processing enterprises and the establishment of new units. This scheme is in effect from 2020-21 to 2025-26 with a total allocation of Rs 10,000 crore.

In parallel, India's exports of organic food products reached $447.73 million in the first eight months of this fiscal year (FY25) and are projected to exceed last year's export figures.

As of November 25, the total exports of organic food products in the current financial year amounted to 263,050 metric tonnes (MT), while the previous fiscal year (FY24) saw organic food product exports totaling $494.80 million.