Approval for FDI in Animal Husbandry and Dairying Sector

The following are the components which are subsumed under FDI in livestock farming:

• Dairy processing and product diversification infrastructure
• Meat processing and product diversification infrastructure includes:
  1. Poultry farming
  2. Dairying farming
  3. Fish farming
  4. Goat farming
  5. Sheep farming
  6. Pig farming
  7. Crab farming
  8. Prawn farming
  9. Duck farming
  10. Quail farming
• Animal feed plant

• List of names, addresses, and identification proof of all foreign collaborators of the investor company/entity
• Certification of Incorporation and Memorandum of Association (MoA) from both investor/investee entities
• An affidavit to ensure all documents are relevant
• Valuation certification approved by a certified chartered accountant
• Company Secretary (CS) Certificate
• Declaration by the Authorized Representative of the Indian Company/LLP
• RBI approval on the amount of refund concerning the amount of the issue (if applicable)
• Valuation certificate
• Approval letter (if non-compliant with the guidelines – if applicable)
• Know Your Customer (KYC)

Following are the key advantages derived for investors in India under oil and gas industry:

1. Robust Demand - The livestock evolution has taken a major segment in GDP growth. With the rising population and the balanced distribution of healthy income, people are more likely to consume animal products. India ranks at 5th largest establishing food processor units in terms of consumer, producer, exporter and expected growth.
2. Rising Investment - Several dairy industries like Mother Dairy invested US$ 48.3 million (₹ 400 crore) to construct the unit in Nagpur. Also 729 network of Krishi Vigyan Kendras has been set up across district levels to ensure diverse agro-activities and animal rearing.
3. Policy Support - The arrival of foreign rivalries in the Indian food market renders a key role to sustainable growth in the dairy sector. Apart from dairying, the scheme was launched by Prime Minister ‘Matsaya Sampada Yojana with a fixed investment of ₹ 6000 crores (US$ 729 million) to be opened to further animal caring activities such as fishermen, fish vendors, expansion of marine market, etc.

Following are the benefits of livestock farming in Foreign Direct Investment (FDI)

1. Development of backward Areas - About 70% of the rural people are dependent on livestock farming since it is the only interface between people living in the backward area and their household income. Therefore, foreign intervention serves a tailored spectrum in the advent of technology such as sex-sorted semen to reproduce desired breeds.
2. Increase in Exports - FDI in livestock farming inspired the balance of trade in the country for essential animal-rearing products. This enhances the performances of local people and offers chances for the local people to raise their standard of living.
3. Stimulation of Economic Development - About 25-30% of the GDP growth is determined from the pool of rural people's contribution. The material, equipment, and local labor usage facilitate and create tax revenue for the government that establishes physical and financial infrastructure in the economy.
4. Increased Employment and Economic Growth - Right at the moment of setting up infrastructure for livestock, it certainly requires laborers to fundamentally structure plants and buildings and thus elevate employment opportunities that involuntarily upsurge economic growth.
5. Human Resource Development - Performing skillful activities that stimulate productivity and knowledge directly and indirectly benefit the organization and its culture.

Foreign Direct Investment (FDI) in the animal husbandry and dairying sector deeply impacted the growth and diverse culture of the economy. It is about rearing, feeding, breeding, and caring for the animals on farms for the benefit of human beings. Some sectors are still prohibited under this sector, whereas the remaining sector is permitted through an approval route with 100% of the investment run under controlled conditions.

Several other factors to consider for investors while investing in science-driven industries sector are listed below:

• Before involving huge investments, applicants must be prerequisites to check the kind of companies the government allows them to invest in. Because investment in the stock market is volatile and may not recover your loss, leading to unwriggled investment which will not recover at the time of redemption of company loss.
• Additionally, before application applicants need to inspect and ensure that all the requisite documents are submitted online without discovering any omissions and incorrect information within the documents. FDI is largely inspired to bring investors forth along with certain advantages that benefit sectors.