This edition brings to our readers a featured article titled "Foreign Investment in the Food Sector – the Present and the Road Ahead".
The government's steady approach towards opening up of the Foreign Direct Investment policy to attract foreign investments in food processing and food product retail trading is spearheading the transformation of the Indian food sector. India is becoming a favorable destination for foreign food retailers and to keep this ongoing momentum additional reforms are in the pipeline to attract further investments and reap benefits for employment generation and manufacturing.
We continue to highlight certain key judgements passed by the Hon'ble Court as well as changes in Corporate and Commercial laws and updates on Projects, Intellectual Property and Banking.
Foreign Investment in the Food Sector – the Present and the Road Ahead
India is at the cusp of establishing a robust and organized food sector. Many global players such as Amazon (USA), Nestle (Switzerland), Unilever (United Kingdom) and Yakult (Japan) are playing a key role in the food retail and processing sector. Foreign food retailers are eyeing the Indian market on account of investment opportunities and the huge consumer potential. Among the many demographic and economic reasons, the prominent factors luring foreign investors are the liberalization of the Foreign Direct Investment ("FDI") policy pertaining to food processing and food product retail trading, rapid rise in urbanization, steady growth in income levels, change in food habits demanding premium and packaged foods, and the transformation towards a fast paced digital economy.
It is projected, not only the big retail giants but also the mid-level foreign retailers are rolling out vigorous plans to enter the Indian market, estimating a third of the investments in the food and beverage segment. The center of attraction for the new entrants is not only limited to the big metros, but also towards the tier I and tier II cities and the immense demand that they hold.
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This update is authored by Clasis Law, Clyde & Co's associated firm in India
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