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‘Back-end infra in food sector will benefit from FDI’
NEW DELHI: More reforms are on the anvil to attract foreign investment, including bringing them face-to-face with domestic investors, says Ramesh Abhishek, the new
NEW DELHI: More reforms are on the anvil to attract foreign investment, including bringing them face-to-face with domestic investors, says Ramesh Abhishek, the new secretary of Department of Industrial Policy and Promotion (DIPP ). Excerpts:
After the new FDI policy, what is next on DIPP’s agenda?
Reforms are a continuous process. We will have three new sections in the FDI policy, one listing out the prohibited sectors such as tobacco and gambling, the other will be a list of sectors where foreign direct investment is allowed through the FIPB route, and their caps, and the third all sectors where 100% FDI is allowed through the automatic route. This will make it even easier for investors to go through.
What is DIPP doing to boost domestic investor sentiments?
Since domestic investment is key to manufacturing and growth, they have to go hand in hand with foreign investments. DIPP has decided to carry out sector-specific outreach programmes with both domestic and foreign partners in those sectors, where they will brainstorm and DIPP through Invest India will facilitate their investment plans. DIPP has been entrusted to also bring on board the ministry concerned, which will mean quicker closing of investment deals and targeted audience getting the right support. First in this will be a programme for the tourism sector in September.
What do you see as the immediate impact of opening up FDI in food processing? Has any company made any proposal?
The policy has just been unveiled. I am sure investors will take benefit of this scheme. A ripple effect of this policy will be seen in the back-end infrastructure in the sector, especially in food marketing and storage.
DIPP had plans to issue a complete ban on FDI in tobacco. What is the status?
DIPP has circulated a note on this for inter-ministerial consultations. That is yet to be finalised and discussed. Once we have comments from all stakeholders, we will take it for a cabinet nod.
