FDIThe Department of Industrial Policy and Promotion, Government of India has announced 100% Foreign Direct Investment in Animal Husbandry including breeding of dogs under controlled conditions. According to the ‘Consolidated FDI policy- Circular 1 of 2011’ released by the department, the term ‘under controlled conditions’ includes:

  • Rearing of animals under intense farming system with stall feeding. Intensive farming system will require climate system (ventilation, temperature/humidity management), healthcare and nutrition, herd registering/pedigree recording, use of machinery, waste management system.
  • Poultry breeding farms and hatcheries where microclimate is controlled through advanced technologies like incubators, ventilation systems etc.

The new policy demands compulsory divestment of 20% equity of the company in favour of an Indian partner / Indian public within a period of 5 years. The animal husbandry sector in India will sure to witness dramatic change in the near future.

The FDI is expected boost the economic growth of the sector. The investments in the sector will receive a jump start poultry-farmwith increased availability of capital. By teaming up with global players, the country can integrate itself with world markets. And the access to advanced technology will raise the performance level of the sector too.  A surge in economic growth can be translated in to higher income of the masses. Around 70% of the low income group live in rural areas with agriculture and allied sectors as their main occupation. So the agricultural and animal husbandry sectors need a fresh lease of life  with more foreign direct investments, advanced technology and with more access to global markets.  With the changes in India’s policies and allowing 100% foreign direct investment in agriculture, animal husbandry and allied sectors as flori-culture, aqua culture, pisciculture, the nation can look forward to increased capital flow and availability of advanced technology.

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