The food processing industry in Karnataka: An overview
Suma S, Ramanjaneyulu
The MSMEs in India Contribute more than 8 per cent of country's GDP and cover a wide spectrum of economic activities. With more than 40 million enterprises, they employ around 100 million individuals, next only to the agriculture sector. They also contribute around 45 percent of the total manufacturing output and about 40 percent of India's total exports. They manufacture over 6000 products, ranging from the traditional products to high-tech items, in addition to providing a wide range of services. Around 30 per cent of the GDP is contributed by the services sector and the remaining by the manufacturing sector. This translates to a gross value added of Rs.20.56 lack crore of the aggregate gross value added. This paper aims at bringing the growth and development of MSMEs in one of the prospering states of India, i.e. Karnataka. Agro-based industries contributing one on the greatest role to the promotion of rural development and industrial activities so this kind of industries commonly located at rural and semi-urban area only besides which requires low investment so this kind of industries very suitable for less developed countries like India. Presently, agro-based industries growth is very stagnant because lack of capital so this factor affects the low employment generation activates particularly in rural area. However, agro-based industries contribute rural development and expansion of industrial activities. The present paper results discussed that increasing of industrial units, employment and investment situation in Karnataka. Further results found that the present emphasis on security-based credit is replaced by need-based credit so that the units could borrow credit on the promise of the higher expected rate of return in future. Non-availability of subsidy in time discourages entrepreneurs to undertake productive activities. The Government of Karnataka should take prompt action on this matter. The food-processing industry in India plays a vital role in the national economic development and has potential to meet the local needs and export requirements. It helps in processing agricultural products such as field crops, pulses, horticultural crops, livestock and fisheries and converting them to edible and other usable forms. This would generate employment opportunities for different types of skills through food processing, packaging, grading and distribution.