India is a place of diverse cultures everyone is aware of that. With the diverse cultures comes a wide range of cuisine catering to over 1/8th of the World’s population. It is imperative that India has a huge scope and ample potential to flourish in the food markets globally. The government of India has recognized this potential and have implemented a wide variety of reforms to empower the country with ease of food business in India. Let’s look at how the government has gone about achieving that until now.
Enabling Ease of Business in India
2017, as well as 2018, have been years of major business empowering reforms in India. These reforms have seen India jump to a record-best of 30 places in the ease of Doing Business Rankings to rank at number 100 from a grand total of 190 countries. The rankings issued by the World Bank had duly noted the comprehensive reforms the government in India had made to empower businesses in the country. In lieu of these reforms, world bank noticed that India had sweeping improvements in as much as 8 of the 10 sub-parameters used to gauge at the ease of doing business in the country.
The reforms introduced have completely changed the structure of how businesses operate in the country. The introduction of GST (Goods and Services Tax) has changed the taxation structure for businesses completely. India climbed 53 spots in the world bank’s rankings with respect to the payment of taxes. The regulatory body for corporates, The Ministry of Corporate Affairs(MCA), also introduced the provision of One-Day Company Incorporation. In addition to this, the rules for Foreign Investment are pretty lax now with the government enabling 100% Foreign Direct Investments for the retail trading of food products manufactured or processed in the country (also includes e-commerce).
In addition to this, India has also been ranked highly in protecting minority interests, getting credit and getting amenities like electricity. The government has also taken steps to promote the development of world-class infrastructure to accelerate growth in the manufacturing sector. The extensive set of reforms have also been introduced to enable scientifically planned urbanization, in turn, attracting more foreign investments. These reforms also include streamlining road development projects with the launch of Bharatmala.
Promoting Ease of Food Business in India
India’s Food Industry Potential: Global Food Provider?
The food manufacturing and processing in India has not been as flourishing in the past few years even though India ranks very high in the number of exports for dairy products and many fruits, vegetables and certain types of meat. However, the government has not been disheartened by the slow growth of the food manufacturing business in India. The government has also seen a vast amount of potential in the industry due to rising affluence, swift urbanizations as well as an abundance of raw materials, as well as, the growth of organized retail.
The total consumption of Food and Beverages in India is currently at $369 billion. However, if projected figures can be trusted, this consumption will rise to over $1.142 trillion. This indicates that there is going to be a substantial increase in the output of the food manufacturing industries. This rise is projected to be at a whopping $958 billion. This in itself, highlights the unlimited potential and plethora of opportunities that lie in the Indian food manufacturing and processing industry.
The economy has been catered to and tweaked around to pave the way for liberalized policies and reforms for promoting investments. India also has high ambitions of developing a reliable supply chain infrastructure as well as making major improvements to the overall processing levels of food. All things said and done, food business in India, if organized and regulated with moderate supervision, can really thrust India towards becoming a global-scale food manufacturing hub.
Current Scenario and the Way forward
In the current scenario of the industry, the government is very eagerly offering several incentivized schemes to facilitate the growth of food processing and its related infrastructure. The central food processing scheme, Kisan Sampada Yojana is looking at the ambitious aim of benefitting the day-to-day activities of more than 20 lakh farmers and also generate employment for 5.3 lakh people by the time the year 2020 rolls around. Schemes for providing capital grants will enable development of mega food parks, cold chain infrastructure, preservation facilities, agro-processing clusters among many other benefits.
FSSAI: Leading the way to revolutionize the Food Industry in India
In India, the Food Safety and Standards Authority of India (FSSAI) has also introduced an array of initiatives to promote the ease of food business in India. These improvements include the online application for FSSAI License and FSSAI registration along with Single Window clearances for imported food products. Few other improvements by FSSAI include inculcating a training routine for food safety professionals along with the implementation of IT interfaces to reduce the frequency of visits a Food Business Owner (FBO) had to previously make to the FSSAI offices.
FSSAI has also slowly but surely aligned their rules, regulations, and guidelines with the Codex Alimentarius international food standards (literally means food code). This step has been taken so as to promote safety and fairness with regards to India’s international food trade.
Thus, there is a strong intent from the Government of India to empower the country with a business-friendly environment for food processing. The government also wishes to develop a robust infrastructure framework which will attract more foreign investments and collaborations in the Indian food processing and related sectors.
Before doing food business or any other activity related to food and beverages for eg A restaurant (See: High-Profit Food Business Ideas) or a food manufacturing and processing unit it is mandatory for these organizations to acquire a FSSAI license.
Get your license swiftly with FssaiFoodLicense by calling +91-8750008585.