Released on = October 18, 2006, 10:39 pm

Press Release Author = RNCOS

Industry = Food & Beverage

Press Release Summary = The Indian food processing industry is opening its doors to
the foreign investors for betterment. The government is planning huge investments in
the sector with increased foreign participation.

Press Release Body = The Indian food processing industry is in a dearth of
infrastructure. To combat the problem, government is providing bonus and tax
reductions to the foreign players. As per an estimate, the Union government probably
will allow 51% foreign direct investment (FDI) in food retailing, covering dairy,
poultry, marine, vegetables and fruits sectors by 2006 end. Presently, FDI permitted
in the food-processing sector is 100%.

The target is to process 20% of the produced fruits and vegetables that is only 2%
currently. The government is opening the doors of the food processing industry to
international biggies to improve the infrastructure, packing, cold storage and
transportation. This will ultimately raise the country’s share in the global
food processing industry.

The concerned ministers have already given the green signal to the proposed FDI
approval in the food-retailing sector. This move will bring foreign investment in
food retailing, award infrastructure status to the industry, provide access to
priority sector lending and amend taxation laws. The motive behind the inception of
agri-business sector to foreign players is to lessen the annual wastage of Rs 50,000
crore.

RNCOS’ recent report on Indian food processing industry, “Indian Food
Processing (2006)”, states that Indian government is working to build the
industry strong. Agri-zones and mega food parks are being conceptualized to promote
food-processing industry in India. The government is considering investing US $
22.97 million in at least 10 mega food parks, apart from providing tax benefits to
the sector. The report also covers:

- Sectoral performance of Indian food processing industry
- Driving force and the challenges faced by Indian food industry
- Account of major players in Indian food processing industry
- Prospects in Indian food processing industry

RNCOS’ report, “Indian Food Processing (2006)”, provides research
and unbiased analysis on the Food Processing Industry in India. This report helps
clients to analyze the opportunities critical to the success of the food Processing
Industry in India.

About RNCOS:

RNCOS, incorporated in 2002, provides Market Research Reports for your business
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information and niche market analysis.

To purchase your copy: http://www.rncos.com/Report/IM068.htm
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at http://www.rncos.com/Blog/food.html


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