Agri-business in India: Gathering momentum (April 2011)

Apr 20, 2011

April 2011
Intertwining Diaspora Wealth & Intellect with the Nation's Progress
ourservices Our investment consultation and facilitation services have been steadily attracting numerous queries from Overseas Indians across geographies, round the clock. These include queries for guidance on tax, legal, investment, education, human resource (HR) services and pre-entry market exploration. Register and avail of our investment consulting and facilitation services. More >
infocus Emerging trends in Indian agri-business With the adoption of innovative management practices and improvements in the agriculture sector, agri-business is witnessing momentum in the recent past. Further, with the provision of modern technology, knowledge and financial assistance to the farmers, the entrepreneurs in agri-business are contributing towards providing value-addition and improving the quality of the products. In order to help the agri-business sector to grow rapidly, the need of the hour is to combine entrepreneurial expertise with Government initiatives. More > Contribution from Rakesh Bharti Mittal, Chairman, CII National Council on Agriculture and Vice Chairman & Managing Director, Bharti Enterprises Limited Sustainable Agriculture: Need of Indian Economy
discussionforum The food processing industry provides critical links and synergies between the agriculture sector and the industry. The Government has also accorded high priority to the sector by providing incentives and fiscal reliefs, encouraging commercialisation and promoting export. According to the 'Vision 2015' document prepared by the Ministry of Food Processing, India's share in global food trade is expected to increase to 3 per cent. In fact, the sector attracted foreign direct investment (FDI) of around US$ 130 million in the first eight months of 2010-11. We invite you to contribute your views and thoughts on the growth and opportunities in the food processing industry. Let's discuss.
investmenttrends According to the figures released by the Reserve Bank of India (RBI) in April 2011, India's Private transfer receipts, comprising mainly remittances from Indians working Overseas, for the period April-December 2010-11 stood at US$ 41.3 billion, while between April-December 2009-10, private transfers receipts amounted to US$ 40.8 billion. More >
yourquery Q: I want to start an integrated dairy cattle breeding, hi-tech milk production and cattle embryo transfer project in Nagpur, India. I have discussed it with IDBI and received the response that I cannot invest in such a project in India and no NRI can invest in the agriculture sector. However, I own agricultural land in Nagpur and have the expertise. A: Please note that this project would be covered under Animal Husbandry which is under the automatic route. So you can start this project after forming the company in India and fulfilling the necessary compliances. (Answered by our Knowledge Partner, Peeyush Agarwal & Co.) More >
policy&newsupdates Creation of National Clean Energy Fund The CCEA has approved constitution of an 'National Clean Energy Fund' (NCEF) in the public account of India along with the guidelines as well as modalities for approval of projects to be funded from the Fund. More > 14 FDI Proposals Worth Rs. 1289.85 Crore Approved Foreign Tourist Arrivals and Foreign Exchange Earnings in March 2011 Manufacturing to Register 9% Growth by End of this Fiscal - India Second in Terms of Manufacturing Competitiveness: Anand Sharma
OIFC, through its e-newsletter 'IndiaConnect' April edition, puts the spotlight on the growing agri-business sector in India, which is witnessing momentum due to increasing improvements in the agriculture sector and adoption of innovative management practices, in both on-farm and off-farm operations. With the agriculture sector accounting for 14.2 per cent of India's gross domestic product (GDP) in 2010-11 and the food industry valued at US$ 180 billion, of which the food processing industry is estimated at US$ 67 billion, the agri-business industry is a sure winner in the coming years. The robust growth in the Indian economy is predicted to take "India in GDP terms from ninth position globally to the third position after US and China," according to Arvind Panagariya, Professor of Economics & Jagdish Bhagwati, Professor of Indian Political Economy, Columbia University. Significantly, India attracted FDI equity inflows of US$ 1.04 billion in January 2011, while US$ 2.28 billion was mobilised in the primary market during February 2011. For more updates, read our Economy Watch section. In this month's newsletter, we have a special opinion piece from Mr Rakesh Bharti Mittal, Chairman, CII National Council on Agriculture and Vice Chairman & Managing Director, Bharti Enterprises Limited. He emphasises that "the Government alone will not be able to implement the value addition strategies in a market led scenario. The corporate sector necessarily has to play a complementary role to the government's initiatives in this sector to enable widespread scaling up of value chains." According to the figures released by the Reserve Bank of India (RBI) in April 2011, India's Private transfer receipts, comprising mainly remittances from Indians working Overseas, for the period April-December 2010-11 stood at US$ 41.3 billion. Please read our snapshots of the trends in "Economic Engagement of Overseas Indians with India" for more updates. Stay Connected with OIFC!
Shefali Chaturvedi CEO Overseas Indian Facilitation Centre


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