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