Employment Generation in India’s Food Processing Industry: The Role of FDI Inflows and Registered Units

Abstract

Foreign Direct Investment has a critical role in the growth of the Indian economy․ The role of foreign direct investment is important in the food processing sector․ There has been a meaningful increase in the gross value addition and foreign direct investment (FDI) in food processing sector․ The Government of India has implemented several innovative schemes such as the National Programme for Dairy Development‚ the Credit Guarantee Scheme for Micro and Small Enterprises‚ and several other schemes․ Review of the literature reveals that a few studies have been conducted to examine the impact of foreign direct investment inflow and number of registered units on generation of employment in the food processing sector in India․ The present study has used multiple linear regression analysis to examine the impact of foreign direct investment inflow and number of registered units on generation of employment in the food processing sector in India․ The study had shown a positive relationship between the number of registered enterprises and job creation․ Further‚ as for foreign direct investment‚ it has not been established that it has any important impact on job creation in India․ The research paper seeks to analyse the impact of the number of registered enterprises on job creation along with foreign direct investment in the food processing sector in India․ It also examined the trends in the number and nature of registered food processing units‚ and trends in foreign direct investment (FDI) in the food processing sector in India․