Analysis of Foreign Direct Investment in Indian Food Processing Industry During Post Reforms
Keywords:
Foreign direct investment, Food processing industry, FDI InflowsAbstract
A strong and dynamic food processing sector plays a considerable role in the overall economic growth of a country. The sector employed large numbers of people, many of whom are unskilled laborers. Since the establishment of the ministry of food processing industry in 1988, the food processing industries acknowledged close attention of this sector. Food sector has the large chain of industries producing inputs & commodities. For the growth of this sector, there is an ample need of capital, which can be fulfill from foreign direct investment (FDI) inflows. In developing economies, food processing industries play a vital role by generating employment and income opportunities. The sub sector generates backward employment linkages by creating markets for raw materials and forward employment linkages, as people engaged in the supply of processed food. Developing nations always like to attract direct investment from developed nation due to potential technology spillovers. Foreign direct investment is one of the key drivers of growth and usually regarded as valuable for the host countries in which FDI flows are intended for. This study focused on the trends and pattern of foreign direct investment in Indian food processing industry from the period 1991-2015.
References
Annual report by Ministry of Food Processing Industry (MOFPI) 2016-17.
Denisia, V., (2010). Foreign Direct Investment Theories: An Overview of the Main FDI Theories, 2(2): pp. 1-2
Liu, Z., (2013). The Relationship between FDI and International Trade: Evidence from P.R.China and OECD, pp 14.
Mathiyazhagan , M., K. (2005). Impact of Foreign Direct Investment on Indian Economy: A Sectoral Level Analysis, working paper -6 (institute of South Asian Studies).
Mittal, R., & Mehta, P., (2018). Analytical Hierarchy Process-Based Analysis of Growth Drivers for the Food Processing Industry in India, International Journal of Management Studies, Vol 5 issue 3(1), pp 6-11.
Nunnenkamp, P & Spatz, J, (2003). Foreign Direct Investment and Economic Growth in Developing Countries: How Relevant Are Host-country and Industry Characteristics, Kiel Working Paper No. 1176, Kiel Institute for World Economics Duesternbrooker Weg 120 24105 Kiel (Germany).
Sahoo, D. (2004). An Analysis of the Impact of Foreign Direct Investment on The Indian Economy, Ph.D Thesis, University of Mysore.
Slimane, M.B., Bourdon, M.H., & Zitouna, H. (2015). The Role of Sectoral FDI in Promoting Agricultural Production and Improving Food Security, HAL (International Economics) , pp.34.
Soontiens et al (2011). Sustainable Globalization and Emerging Economies: The Impact of Foreign Direct Investment in Thailand, Research Gate, pp 371-384
Srinivas, R, & Babu, T.K, (2017). Growth Patterns in Foreign Direct Investment in Indian Food Processing Sector, Kaav International Journal of Economics, Commerce & Business Management, vol 3, pp 176-183.
Thanyakhan, S., (2008). The Determinants of FDI and FPI in Thailand: A Gravity Model Analysis, Ph.D Thesis, Lincoln University.
Tisimia, V. K. (2014). Growth of Small Agro-Processing Firms and Their Influence on Employment Creation, Tanzania, Ph.D Thesis.
World Investment Report by United Nations UNCTAD (2009).
