Fdi Ppt

Major issues on FDI in Multi-brand retail 1) Cabinet decision – Distinct Indian Model with Safeguards for domestic stakeholders : FDI up to 51% only through government approval mode. Minimum investment of US $ 100 million of which at least 50% to be invested in backend infrastructure, which would include capital expenditure on the entire spectrum of related activities including cold chain infrastructure, food processing, refrigerated transportation, logistics. Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per 2011 Census and may also cover an area of 10 kms around the municipal/urban agglomeration limits of such cities; In States/ Union Territories not having cities with population of more than 10 lakh as per 2011 Census, retail sales outlets may be set up in the cities of their choice, preferably the largest city Mandatory sourcing of a minimum of 30% from Indian small industries with a total investment in plant and machinery not exceeding US $ 1 million. Government to have first right of procurement of agricultural produce to ensure food security for the poor. Fresh agricultural produce, including fruits, vegetables, flowers, grains, pulses, fresh poultry, fishery and meat products, can be unbranded to help local farmers, fishermen and horticulturists. The above policy is an enabling policy only and the State Governments/Union Territories would be free to take their own decisions in regard to implementation of the policy. Therefore, retail sales outlets may be set up in those States/Union Territories which

have agreed, or agree in future, to allow FDI in MBRT under this policy. 2) Context
India is the second largest producer of fruits and vegetables in the world with an annual production of 240 million tonnes, yet the post-harvest losses are unacceptably high, hovering in the range of 35-40%. There are huge weaknesses in the entire food value chain infrastructure in absence of adequate cold chain facilities,