Call for more reforms to spur NRI investment in Indian food sector
dubai — India’s fast growing food processing industry will be betterplaced to attract investments from the UAE if New Delhi takes prompt measures to enhance the “ease of doing business” environment and allows long-term investment visas for Emarati partners, the Indian Business and Professional Council said on Monday.
At a business breakfast meeting with Harsimrat Kaur Badal, Indian Minister of Food Processing Industries, IBPC officials urged Indian government to facilitate overseas investments in boosting cold storage capacities.
Kulwant Singh, President of IBPC, said Badal’s visit, the second high level delegation from India after Prime Minister Narendra Modi’s visit to the UAE in August 2015, would encourage stronger trade ties between the two nations with figures expected to reach $100 billion very soon.
The UAE is the second largest export destination for India and third largest trading partner with current bilateral trade at a level of $60 billion.
James Mathew, Secretary General of IBPC, pointed out that Badal has been encouraging foreign direct investment in the multi-brand retail of food and food products manufactured in India. She has been advocating for allowing 100 per cent FDI in the food industry as well as a tenyear tax relief for firms investing in setting up food processing units in the Mega Food Parks in the country, Mathews said.
The minister spoke about India’s growth in the last 19 months and discussed investment opportuni- ties for Indian businessmen in the UAE as well as the scope for Indian food exports to the region.
“Make In India has been one of our biggest brands; there is a new thrust and vigour to promoting it. The visits of UAE leaders to India are a testament to the country’s growth. We are expecting trade between both the nations to increase by 60 per cent in the next five years. The UAE is India’s third largest trade partner and we look forward to taking it to a higher level,” said Minister Badal.
“The government is looking to make India a global manufacturing hub. Our aim is to get rid of obsolete laws, giving less significance to government and more to governance,” she said.
India has taken various steps to improve the ease of doing business environment under the “Make in India” initiative. Investment in India had increased by 48 per cent in 2014-15. This shows the importance the government has given to encouraging foreign investments, said the minister.
Anurag Bhushan, Consul General of India in the Dubai, said investment opportunities in India have opened up immensely under the leadership of Prime Minister Modi.
“India is a great story now. Development is taking shape in the country and we are paying prime focus to enabling investors to do business in a simplified manner. There are immense opportunities for the food processing industry to grow,” said Parag Gupta, Joint Secretary Ministry of Food Processing, Government of India.