Evaluation of Indian Food Processing Machinery Sector

Food processing industry is an engine for the growth of any economy and this sector falls heavily on its technology and machinery, so advancement in technology and development of machinery are indispensable to Food Processing Sector that necessitates wide range of machines so as to process different variety of raw materials.

 

Emergence of the organized retail is a positive traction in food industry. Modification in government policy and Regulations, Conglomeration of poultry chain, Raising value of the dairy products, moreover setting up Research and development panel that aims at acquiring new products and developing cost effective technology for processing and preservation of food products, ameliorating various aspects such as  coloring agents, pesticides residues, preservatives, and etc. 

 

Improving quality control procedures, releasing adequate fund for food testing laboratories,and setting up a surveillance system for monitoring quality and composition of food are landmark decision of the Government to promote the Food Technology sector and Food industry. 

 

The entire market of food processing machinery is valued at over USD $2 billion in 2005, and expected to grow consistently by about 18 per cent annually and the industry in India has displayed its ample potential in fulfilling huge demand both in the national & international market. The machinery industry in India is a key to manufacturing sector by dint of providing all necessary machinery and equipments required for production.

 

Government's policy and Collaboration

 

Indian Ministry for Food Processing are planing to set up an exclusive Food park powered by French Technology that would help Indian Companies  maintain the quality of international standard. The Ministry proposed its ardent desire to the Government to grant a tax concession as well as abatement in VAT and custom duties on Food products, Raw materials,and  Machinery.

 

Recently France and Netherlands have promised to invest in expansive food processing sector and government's ambitious plan to double the size of the sector within five years. All these pave the way for overwhelming development of the Processing Machinery sector in India.

 

In order to encourage investors and business, lots of different policy initiatives and measures which have been undertaken by Government are efficacious to the growth of Food Technology and Food Industry. As a result, the amount of credit has been multiplied by the banks and FIs, from USD 17.41 billion during 2003-04 to over USD 23.76 billion 2005 -06.

 

Full Duty Exemption on all imports for Units in Export Processing Zones.

 

The liberalized policy with specific incentives provides a conducive environment for investment and exports in the industry and imports of Food processing equipments accounts for less than 5% of the total processing machinery market because of being more expensive than indigenous products. So it motivates the foreign investors to join hand with Indian companies in order to cover a vast untapped market.