Union Minister of State for Food Processing Industries, Rameswar Teli, while giving a written reply to a question on employment opportunities in the food processing sector and increase in its share in GDP, in Rajya Sabha today, stated that Pradhan Mantri Kisan SAMPADA Yojana envisages creation of direct and indirect employment for 5,30,500 persons by 2020.
He stated that the Government has taken a number of measures and policy initiatives to promote overall growth of food processing sector and generate employment opportunities. 100% Foreign Direct Investment (FDI) through automatic route in manufacturing of food products and 100% FDI under Government approval route for retail trading, including through e-commerce, in respect of food products produced and/or manufactured in India has been permitted.
The Minister also stated that a special fund of Rs.2000 crore has been created with the National Bank for Agriculture and Rural Development (NABARD) to provide affordable credit to food processing projects/units. Food & agro-based processing units and cold chain infrastructure has been classified as agriculture activity for Priority Sector Lending (PSL). Fiscal measures like 100% exemption of Income Tax on profit for new food processing units, 100 percent income tax exemption from profit derived by FPOs having annual turnover of Rs.100 crore have been allowed for activities such as post-harvest value addition to agriculture. Lower Goods & Service Tax (GST) rates for majority of food products have been fixed.
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