Ensuring smooth and hassle-free businesses in India for both the domestic and foreign investors, Prime Minister Narendra Modi on Friday pitched for investment in food sector in the country. “India is one of the fastest growing economies of the world today. Starting business in India is easier now than ever before as procedures have been simplified, archaic laws repealed and compliance requirements reduced,” he said.
A slew of reforms initiated by the Government in the last three years have helped India jump 30 places since last year in the World Bank's 'Ease of Doing Business' ranking to break into the top 100-nation club. “This is the highest ever improvement for India, and the highest jump for any country this year. From a rank of 142 in 2014, we have now reached the top 100,” he said at the World Food India 2017 meet here.
Echoing the views of the Prime Minister, Finance Minister Arun Jaitley also exhorted global as well as domestic companies to invest in the food sector. Jaitley also stressed upon the need to increase farm productivity, improve storage facilities and spur food processing activity. “The current infrastructure is not sufficient to meet the future demand and there is need to add capacity as population would not only grow but also become richer with increase in GDP,” Jaitley said.
However, the Prime Minister emphasized that while private sector participation has been increasing in many segments of the value chain, more investment is required in contract farming, raw material sourcing and creating agri linkages. “Many international companies in India have taken a lead in contract farming initiatives. This is a clear opportunity for global supermarket chains considering India as a major outsourcing hub,” he said, adding that the introduction of Goods and Services Tax (GST) from July 1 has eliminated the multiplicity of taxes.
Incidentally, the World Bank's 'Ease of Doing Business' ranking does not take into account the impact of GST as June was set as cut-off for judging the parameters. It will be accounted for in the next year's ranking.
With CEOs of top global and Indian firms in the food processing sector in attendance, Modi invited investment in India's food processing sector and promised full support.
“Come. Invest in India,” he said, adding that the place with unlimited opportunity from farm to fork and the place to produce, process, and prosper - for India and for the world.
The Prime Minister listed out 'transformational initiatives' of the Government in the food processing sector, namely allowing 100 per cent foreign direct investment (FDI) in trading, including through e-commerce, of food products manufactured or produced, single-window facilitation cell, attractive fiscal incentives and easy credit.
“Today, our strong agricultural base provides us a solid launchpad to create a vibrant food processing sector. Our vast consumer base, rising incomes, favourable investment climate and a government dedicated to ease of doing business, all make India 'the place to be' for the global food processing fraternity,” he added.
He also highlighted combining traditional Indian food with modern technology, processing and packaging that can help the world rediscover health benefits and refreshing taste of Indian food ingredients such as turmeric, ginger and tulsi.
“The perfect blend of hygienic, nutritious and tasty processed food with the added benefits of preventive healthcare can be produced economically, here in India,” he said.