Union Food Processing Minister Harsimrat Kaur Badal on Thursday said that the food processing sector is expected to see FDI investments worth $10 billion in the next 2-3 years.

She also said that India has the potential to become a global food factory.

Talking on the sidelines of the World Economic Forum, Badal said: “There has been a 40 per cent increase in the inflow of FDI compared to last year, after we have opened up FDI in multi-brand retail of food and food products produced in the country. We believe our policies such as Kisan Sampada Yojana and push for creation of mega food parks and cold chain infrastructure, among others, will help in creating backward and forward linkages with the farmers and create capacity to make India the ‘global food factory’.”

She added that the upcoming World Food India conference, slated to be held next month, will help in giving a further boost to the food processing sector in terms of attracting investments.

“After World Food India, we will in the next few years see FDI move into much bigger figures as we have been focusing on creating infrastructure and introducing policies and programmes,” Badal said.

Since the government has allowed 100 per cent FDI in food retail, several foreign players have been pushing for also allowing some percentage of domestically manufactured non-food items.

Asked if the government is still considering these demands, Badal said, “It is under consideration. The government will take a decision on it.” The World Food India event is expected to see participation of over 2,000 companies from more than 30 countries.

The Ministry is pitching the event as a platform to facilitate partnerships between Indian and international business and investors in the food processing sector.