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Government Policies & Regulatory Framework Investment Approval: •
Automatic investment approval up to 100 per p er cent foreign equity for NRI and overseas corporate bodies. These investments are allowed in food processing segments such as
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coffee and tea !I in organi"ed retail# India currently allows 100 per cent !I in $ash % $arry segment and &1' in single(brand retail) which is e*pected to be further increased to 100'. India is also e*pected to allow &1' !I in multi(brand retail) which will boost the
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nascent organi"ed retail mar+et in the country ,riority -ector# The overnment of India recogni"es food processing and agro industries
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as priority sectors Rela*ation of license rules# Industrial licenses are not required for almost all food and agro(processing industries) barring certain items such as beer) potable alcohol and wines) cane sugar) and hydrogenated animal fats and oils as well as items reserved for e*clusive
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manufacturing in the small(scale sector -tatutory /inimum ,rice# In ctober 002) the government amended the -ugarcane $ontrol rder) 1233) and replaced the -tatutory /inimum ,rice 4-/,5 of sugarcane with air and Remunerative ,rice 4R,5 and the -tate Advised ,rice 4-A,5
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GOODS AND SR!I" #A$ Implementation of -T from April 1) 013. The rate of -T on services is li+ely to be 16 per cent and on goods is proposed to be 0
per cent. /$ sector wants an early rollout of the oods‐and‐-ervices ta* 4-T5 so as to reduce supply chain constraints) improve competitiveness of /$ companies against unorgani"ed players
$"IS D%# •
7*cise duty on instant tea) quic+ brewing blac+ tea) and ice tea would be decreased to
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reduce the retail price by 80 per cent. 7*cise duty on other beverages and lemonade would be decreased to reduce retail sale price by 8& percent.
R'A$A#ION OF 'I"NS R%'S:
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Industrial license is not required for almost all food and agro(processing industries) barring certain items such as beer) potable alcohol and wines) cane sugar) and hydrogenated animal fats and oils as well as items reserved for e*clusive manufacture in
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the small(scale sector. S#A#%A#OR (INI(%( PRI": In ctober 002) the government amended the -ugarcane $ontrol rder) 1233) and replaced the -tatutory /inimum ,rice 4-/,5 of sugarcane with air and Remunerative ,rice 4R,5 and the -tate(Advised ,rice 4-A,5
FDI IN ORGANI)D R#AI' •
The government approved &1 per cent !I in multi(brand retail in 003) which will boost
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the nascent organi"ed retail mar+et in the countr y It also allowed 100 per cent !I in the cash and carry segment and in single(brand retail
FOOD S"%RI# *I'' +FS*, •
-9 would reduce prices of food grains for 9elow ,overty :ine 49,:5 households) allowing them to spend resources on other goods and services) including /$ products ; This is e*pected to trigger higher consumption spends) particularly in rural India) which is an important mar+et for most /$ companies.
#'"O( RG%'A#OR A%#-ORI# OF INDIA4#RAI5 AD!R#ISING R%G%'A#IONS •
/$ companies) which are top advertisers on television 4above &0 per cent share5) are li+ely to face the twin ris+s of reduced inventory to advertise) which could be cut by &< 80 per cent) and increased prices as broadcasters hi+e prices.
S#% S"-( •
overnment has initiated -elf 7mployment and Talent =tilisation 4-7T=5 scheme to boost young entrepreneurs. overnment has invested =-!138.>8 million for this scheme.
