At least $10 bn of FDI in pipeline for govt approval: Harsimrat Kaur Badal

A massive amount of foreign direct investment (FDI) is waiting for the green signal from government, that would bring about desired changes in retailing. If the government gives permission, the country could be looking at an initial investment of over $10 billion in the same sector.

Union Food Processing Minister, Harsimrat Kaur Badal, said recently, they will allow global retailers to sell a percentage of non-food items. Thus, funds will flow in if ‘food plus’ is allowed by government, and there would be an initial investment of at least $10 billion.

However, the exact definition of 'food plus or non-food' has not been clarified, and as to what all would be allowed under the banner has not been decided yet, but Badal said it would mainly have fast moving consumer goods and home care, fully manufactured in India.

The Minister further stated that, the global retailers would only be allowed to establish their shop if they invest in the back-end, at the farm gate level, which will directly benefit cultivators.

Food contributes to about 70 per cent of country’s $600 billion retail market. The government is now trying to triple this in coming five years.

As per the reports, the global entities such as Walmart, Tesco, Auchan, Harrods, Partridges and Marks & Spencer had shown interest to set up their shops in India if ‘food plus’ was allowed.