American Veterans Investment Group
American Veterans Investment Group

FDI (Foreign Direct Investment) Inflows to Sugar: India

The government of India has allowed foreign direct investment up to 100% through the automatic route for the sugar industry in India. Further, in order to encourage FDI Inflows to Sugar industry in the country, the Indian government is trying to make the policy more investor friendly by establishing an authority for quality standards and also by giving exemption from various taxes and duties (Retrieved from Business Maps of India, 2011).


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100 % FDI allowed in some areas of farm sector

According to the circular by the Department of Industrial Policy and Promotion released on "Consolidated FDI Policy -- Circular 1 of 2011", 100 per cent FDI has been now allowed in development and production of seeds and planting material, floriculture, horticulture, and cultivation of vegetables and mushrooms under controlled conditions. 


Further it states the term “under controlled conditions’’ covers the following: Cultivation under controlled conditions’ for the categories of floriculture, horticulture, cultivation of vegetables and mushrooms is the practice of cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly houses or any other improved infrastructure facilities where microclimatic conditions are regulated anthropogenically (Retrieved from the Hindu, 2011).


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