Challenges and Opportunities of Food Processing Industries in India-with special reference to initiatives of NABARD in Uttarakhand

Abstract

India is the world’s second largest producer of food next to China yet only accounts for 1.5% of total worldwide food trade. This indicates vast scope for both investors and exporters. Food processing industry is of enormous significance in this context because of the vital linkages and synergies that it promotes between the two pillars of our economy, industry and agriculture. The industry contributes 32% to the country’s total food market and is ranked fifth in terms of production, consumption, export and expected growth. Having great export advantage, processed food products accounts for 13% of India’s exports. Being an agricultural economy the sector also contributes largely towards rural development of India which is core of our national development. Recognizing the fact, National Bank for Agriculture and Rural Development (NABARD) is providing several initiatives for these industries. These initiatives have relatively greater scope in Uttarakhand which suffered extensive damage in the 2013 deluge. This paper is an attempt to evaluate critically and analytically the drivers and potential barriers to growth of the sector with special reference to initiatives of NABARD in UIttarakhand state. Special emphasis is made on SWOT analysis and thrust areas for future for achieving greater role of the sector in the national economy.