FDI Inflows to Sugar

FDI Inflows to Sugar industry in India has increased over the last few years due to the several liberalization measures that have been taken by the Indian government with regard to the economic policy of the country. The increase in FDI Inflows to Sugar industry in India has helped in the growth and development of the industry.

Sugar industry in India:

India is the second biggest producer of sugar in the whole world and it is expected that the country will overtake brazil to become the largest producer of sugar in the world by 2007- 2008.

The estimated production of sugar from India by the end of 2007-2008 is around 33.15 million tons. India is also the biggest consumer of sugar in the world, with an average consumption of around 190 lakh tons of sugar each year. The sugar industry in India also exports its products to various countries such as Pakistan, Far and Middle East, Sri Lanka, Indonesia, and Bangladesh.

FDI policy for sugar industry in 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.

Amount of FDI inflows to sugar industry in India:

The total amount of FDI Inflows to Sugar industry in India was US$ 33.82 million between 1991 and 2007. The percentage of FDI Inflows to Sugar industry in India stood at 0.08% out of the total flow of foreign direct investment in the country between 1991 and 2007.

Impact of FDI inflows to the sugar industry in India:
FDI Inflows to Sugar industry in India has helped to bring in the latest technology into the industry. This has helped in improving the standard and quality of the products of the industry.

Last Updated on 4/23/2011