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Sector Profile FOOD PROCESSING Sector Profile State Horticulture Mission Government of Uttarakhand CONTENTS Uttarakhand - Overview Food processing scenario in India Key Credentials of the State Regulatory mechanism: Registration/ NOCs/ licenses required for setting up of units FDI Regime Policies, schemes and incentives State incentives applicable for Food processing industries Resource profile of Uttarakhand Food processing clusters in Uttarakhand Cold chain projects in Uttarakhand Potential Investible projects Departmental contact details Page 2 23 October 2019 UTTARAKHAND OVERVIEW (1/5) ► The State of Uttarakhand was formed on 9th November 2000 as the 27th State of India, when it was carved out of northern Uttar Pradesh ► Uttarakhand offers locational advantage due to its proximity to important market of National Capital Region and has excellent connectivity with its neighbouring states ► GSDP of the state stood at INR 2,37,147 Million (3.34 bn USD) with a growth rate of 10.34% (FY 2018-19)* ► Tertiary sector in the state contributes around 39.76% to the Gross State Domestic Product (GSDP: 2017-18)** ► With literacy rate* (78.80%) higher than the national average and presence of institutes of international repute, the State has abundant availability of quality human resources ► The state offers a wide range of fiscal and non-fiscal incentives Acknowledged for Ease of Doing Business & Peace of Doing Business… Consistently ranked amongst Top States in India by DPIIT* & World Bank *Department for Promotion of Industry and Internal Trade Page 3 23 October 2019 Sources: *Uttarakhand at a glance 2016, DES, GoUK ** CSO & Directorate of Economics & Statistics, GoUK *** Evaluation of BRAP 2017 Reform Evidence, DIPP UTTARAKHAND OVERVIEW (2/5) CONNECTIVITY - UTTARAKHAND Gauchar 55 min Chinyalisaur Pithoragarh DELHI 6 hr 4 hr (240 km) Dehradun Pantnagar Page 4 23 October 2019 UTTARAKHAND OVERVIEW (3/5) SNAPSHOT - UTTARAKHAND Water bodies Population (‘000) Area (Sq. Km) General Ganga, Yamuna, Characteristics Bhagirathi and 10086 53,483 others GSDP Per Capita GSDP Growth (Million INR) Income (INR) Rate Economic Indicators 2,37,147 1,98,738 10.34% (3.34 bn USD*) (16875 USD*) (FY 2018-19) (FY 2018-19) (FY 2018-19) Higher Education Industrial Training Polytechnic Institutes Institutes (ITI) Institutes Technical Institutes 159 184 71 Sources: Uttarakhand at a glance 2016, DES, GoUK INTEGRATED INLAND CONTAINER AIRPORTS ELECTRICITY INDUSTRIAL DEPOTS TARIFF ESTATES (IIEs) 2 ICDs 2 (Domestic) 07 INR 4.99* /kWh (FY 2017) (2017-18) *Conversion Rate: 71.04 Page 5 23 October 2019 Source: ICD: http://commerce.gov.in/writereaddata/UploadedFile/MOC_636517146051928242_List_ICDs_CFSs_AF Ss_01-01-2018.pdf; Electricity: http://www.cea.nic.in/reports/monthly/installedcapacity/2018/installed_capacity-07.pdf UTTARAKHAND OVERVIEW (4/5) EASE OF DOING BUSINESS Under the ‘Ease of Doing Business’ initiative, the State has implemented a web based Single Window Clearance System - www.investuttarakhand.com, allowing investors to avail the necessary State Government statutory approvals to establish and start their business operations through a single platform without any physical touch point with any approving / licensing authority. 150 130 100 100 + + + + Regulatory Timelines notified New Standard Online Business Reforms under Uttarakhand Operating Services Undertaken Enterprises Single Procedures drafted Offered Window Facilitation for Departmental & Clearance Act services 2012 HASSLE FREE SETUP AND OPERATIONS IN THE STATE Online Single Window System Auto Renewal of Consent to for all required approvals Establish, Consent to Operate Self / Third party certification in Single Point Sectoral Clearances lieu of departmental inspections Investment facilitation centre to Single Integrated Return for all handhold investors labour laws Objective Criteria for land allotment & Geographic Information System for Simplified Consent Renewal and land banks Statutory Returns Regular Consultation with Industries Commercial Court set up in & Grievance Redressal System Dehradun with entire state jurisdiction Page 6 23 October 2019 UTTARAKHAND OVERVIEW (5/5) INVESTOR FACILITATION ► The Government of Uttarakhand has laid huge emphasis on business facilitation by creating an enabling environment for industries to set up and start their operations in the State ► The State government houses a dedicated ‘Investment Promotion & Facilitation Centre (IPFC)’ which acts as a centralized one-stop-shop for the investors / businesses and provides complete handholding support in a structured, focused and comprehensive manner. IPFC focuses on investment promotion, facilitation, direct engagement and consultation with investors / stakeholders and ensures investment realization and sustainable industrialization in the state ► ‘Uttarakhand Right to Service Act, 2011’ & ‘The Uttarakhand Enterprises Single Window Facilitation and Clearance Act, 2012’ were enacted to provide necessary time bound licenses, permissions and approvals for setting up of commercial establishments in the state. The State has established robust processes to ensure time bound delivery of government services with more than 100 department services already notified under both the acts and monitoring the timely disposal of services CREDITED BY INDUSTRY ASSOCIATIONS NCAER Assessment based on Story of `Make in Uttarakhand has emerged as “Perception of good business Uttarakhand` which the top state in the country climate” ranks Uttarakhand as started in 2003 is a classic in terms of growth in the the Least Corrupt state in India example of what industry and service sectors manufacturing can deliver in the last ten years. to a region`s economy in NCAER N-SIPI Index Survey ; Uttarakhand has also terms of both economic Five states – Uttarakhand, figured as the second best growth and employment Gujarat, Assam, Andhra performing state in terms of generation Pradesh and Himachal Pradesh project implementation, – had more than 90% improving investment -CII Report `Making respondents say they faced no scenario in the state Uttarakhand Competitive, problem in getting land June 2016’ CII NCAER ASSOCHAM Page 7 23 October 2019 FOOD PROCESSING SCENARIO IN INDIA (1/4) INDIAN FOOD PROCESSING SECTOR ► The Food processing sector, valued at USD 322 billion in 2016 is considered as one of the sunrise sectors in India. It is expected to grow to USD 543 billion by 2020 at a CAGR of 14.6% ► Globally, India ranks 2nd, next only to China, in total food production* ► India ranks 1st in the World in production of Milk, Bananas, Mango, Guava, Papaya, Ginger and Okra* ► India ranks 2nd in the World in production of Green peas, Potato, Tea, Tomato, Sesame Seed and many other key commodities* ► India is also amongst the top 10 countries in the world in terms of land area under organic agriculture. The country produced around 1.35 million MT of certified organic products (2015-16)* ► India’s 60 Agri-Export Zones, 34 million MT of Cold Storage capacity, 41 Mega Food Parks and 228 cold chain projects approved by Ministry of Food Processing Industries (MoFPI) paves a way for exploring huge opportunities in the sector* ► The major food categories and their share in the food processing sector are as follows#: ▪ Dry food grocery: 34.7% ▪ Milk & dairy products: 16% ▪ Fresh produce: 15.6% ▪ Perishables: 8% ▪ Spices: 6% ▪ Others: 19.7% Page 8 23 October 2019 * http://foodprocessingindia.co.in # http://www.investindia.gov.in/sector/food-processing FOOD PROCESSING SCENARIO IN INDIA (2/4) INDIAN FOOD PROCESSING SECTOR ► India's exports of processed food was USD 4.19 billion in 2016-17. Total agricultural exports from India grew at a CAGR of 19% over FY 2010-16 to reach USD 32.08 billion in FY16. ► This sector has a total of 38,603 registered units with fixed capital of USD 29.7 billion, around 1.77 million persons engaged and aggregate output of around USD 144.6 billion. ► Government of India allows 100% FDI under the automatic route in food processing industries. FDI inflow in the sector from April 2000 to December 2017 was USD 8,364.91 million Page 9 23 October 2019 Source: http://dipp.nic.in/sites/default/files/FDI_FactSheet_21February2018.pdf http://apeda.gov.in/apedawebsite/six_head_product/PFV_OPF.htm# FOOD PROCESSING SCENARIO IN INDIA (3/4) FDI REGULATIONS FOR FOOD PROCESSING SECTOR ► 100% FDI is permitted for the manufacturing sector under the automatic route. ► A manufacturer is also permitted to sell its products manufactured Manufacturing in India through wholesale, retail or e-commerce activities. sector ► FDI provisions applicable to the retail trading sector, 100% FDI under the approval route is permitted for food products manufactured or produced in India ► 100% FDI is permitted, under the automatic route for the following activities: ❑ Floriculture, horticulture, apiculture and cultivation of vegetables and mushrooms under controlled conditions (ie Agriculture Sector where climatic and related conditions are controlled artificially) ❑ Development and production of seeds and planting material ❑ Services related to agro and allied sectors ► 100% FDI is permitted, under the automatic route for the following plantations: Plantation Sector 1. Tea and coffee 2. Rubber 3. Cardamom 4.Palm oil and olive oil ► Up to 100% FDI is now permitted for companies looking to undertake SBRT in India : ❑ FDI up to 49% is permitted under the automatic route ❑ FDI beyond 49% (and upto 100%) is permitted under the approval route Single-brand retail trading (SBRT) ❑ Where FDI in SBRT exceeds 51%,
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