Role of Food Industry in Indian Economy
Posted by indira hk on February 13th, 2021
The major and crucial role of the food industry in the Indian economy is something that has been understood and appreciated by the government as well as people from all walks of life. In fact, in the present scenario of global economy, every country is looking out for ways to improve their economy. Now, no country can boast its growth unless it has a sound development in the food industry. It is true that India has a very strong food industry which provides employment to millions of people.
However, the importance of the food industry does not stop at providing employment but it also has a huge impact on the economy. One of the main reasons why Indian economy is booming is because of the huge production of food. The rise of technological advancements has also resulted in higher production of food. In fact, in the market right now, almost every product is produced with hi-tech machines. With the advent of modern day science and innovation, the process of food processing has also become much simplified. Thus, the scope for food processing industry has grown a lot in India.
The above stated facts are a clear indication of the importance of the food industry in India. But, what are the challenges faced by the industry in India? What are the hurdles that the industry has to face in order to achieve success? These are the questions that are usually asked by the potential entrepreneurs before they set out for a business expansion in India.
The first challenge faced by the food industry is to keep pace with the increasing population. Population is increasing at a fast rate in India and the availability of space and manpower is also constraining the capacity of the food industry to increase its production. Apart from that, the industry is also facing challenges due to the growing awareness among common people about health and nutrition. This increased consciousness about diet leads to less consumption of meat products. Similarly, there is a rapid growth of food technology and there is a trend of using ingredients that are cost-effective.
The rapid growth of urbanization has also been a challenge for the food industry. Rapid urbanization leads to increased air traffic, creating tougher challenges for food processing. Air pollution has become a big issue worldwide and the growth of cities has also increased the scope for the expansion of the food industry. In the emerging metropolis, the hygiene condition is not good enough to guarantee food safety and this calls for an urgent need for improved hygienic conditions in the food processing units.
In the developed countries, the food processing is done using chemicals, synthetic fertilizers and pesticides. All these chemicals are dangerous for health. Many countries have banned the use of these chemicals in their food industry but in developing countries, these chemicals remain a part of the staple foods. For this reason, the governments of developing countries to restrict the usage of such chemicals in their food manufacturing processes. The food processing industry is yet to absorb these restrictions, which can bring a drastic change in the sector.
A further aspect to analyze is the growth pattern in the developing countries. Recent studies show that the per capita income of India is going to increase by thirty percent in next four to five years, which means that the consumption of processed food is also going to increase. The developing countries are in fact lagging behind other developing countries in terms of food production. This can only be taken as an invitation for the food manufacturers from abroad to set up their manufacturing units in these countries, since they can produce high quality processed food at affordable prices.
Growth in Asia will also spur the food industry. China and India are emerging as the two fastest growing economies in Asia. These countries have great potential to transform their food sector, turning it into a major exporter of profitable goods globally. It also means that there is scope for the food processors in these regions to set up their manufacturing units to tap the enormous supply of cheap labor.
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About the Authorindira hk
Joined: February 13th, 2021
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