100 pc FDI allowed in select agricultural activities

New Delhi, Jul 12 (UNI) Government today clarified that 100 per cent foreign direct investment is allowed in floriculture, horticulture, development of seeds and a few other activities related to agriculture.

The other activities where FDI upto 100 per cent is allowed include animal husbandry, pisciculture, aqua-culture, cultivation of vegetables, mushrooms under controlled conditions and services related to agro and allied sectors. In all these areas, the FDI is permitted under the automatic route.

FDI upto 100 per cent is also allowed in tea plantation, subject to the conditions of divestment of 26 per cent equity of the company in favour of an Indian partner/public within five years. In case of future land use change is required, the permission of the concerned state government is also needed.

An official statement from the Department of Industrial Policy and Promotion said that FDI is not allowed in any other agricultural sector/activity.

UNI PC DKS HT1948