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Overview->Growth Sector->Agriculture & Allied Sector cold chain projects in india
foreign equity participation

One of the most important sectors in Indian economy is agriculture which constitutes 19.9% of the GDP and accounts for 13% of the countries exports. The growth rate for the sector was 5.6 % for the year 2006-07 with almost two third of its workforce is engaged in this sector and about 43 % of India's geographical area is used for agricultural activity. The size of the food grain industry is estimated to be USD 70 billion. The food processing industry is over USD 1 billion and is expected to grow at the rate of 20% over the next few years.

The government is taking steps to ensure a significant growth in this sector by providing the necessary infrastructure in terms of food processing, food grain storage, cold storage, refrigerated transport etc as the industry is estimated to be losing 20% of its produce due to poor storage facility. Foreign equity participation of upto 51% has been allowed in Cold Chain Projects. But the government also needs to take initiative to provide subsidies to the small farmers so that this sector can grow much faster. The subsidies in India are too low as compared to Canada, Japan, and USA etc.

Agricultural sectors like horticulture, floriculture, development of seeds, animal husbandry, pisciculture, aqua culture, cultivation of vegetables, mushroom under cultivated conditions and services & allied sectors related to agro are open to 100 % foreign direct investment (FDI).
Government of India is utilizing the advantages of biotechnology for accelerating the growth of agricultural sector. According to a report by Rabobank, the Indian agri-biotech sector has been growing at 30 % growth rate in the last five years and is likely to maintain this growth well into the future


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