Volume : III, Issue : III, March - 2013

An Analysis of FDI in Indian Food Processing Industry

S. Saravanan, Dr. V. Mohanasundaram

Abstract :

In terms of producer of food India is second largest in the world next to China. It has 161 million hectares and has highest acreage under irrigation. The industry is estimated to be worth around US$ 67 billion and employing about 13 million people directly and about 35 million people indirectly. At the same time the rural economy of India is considered as poor because the value addition to food products in low of food grains, vegetables, fruits and other cereals has not been done in rural areas. Hence, there is trust on food processing units in rural areas. The term food processing is mainly defined as a process of value addition to the agricultural or horticultural produce by various methods like grading, sorting and packaging. In other words, it is a technique of manufacturing and preserving food substances in an effective manner with a view to enhance their shelf life; improve quality as well as make them functionally more useful. At the same to start, expand and absorb technology in the food processing sector one important requirement is capital. As India is experiencing shortage of capital, there came a proposal to allow (FDI) into India, especially after 1991 economic reforms. In this paper an analysis was made on FDI in India’s food processing sector and the results showed a positive trend though much has be done in the policy level as well as practical aspects.  

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

S. Saravanan,Dr. V. Mohanasundaram An Analysis of FDI in Indian Food Processing Industry Indian Journal of Applied Research, Vol.III, Issue.III March 2013

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