1.1 Firm should use FDI to do effective business:
In India the food processing industry is one of the sunrise industries whose capability has been identified well but not realized satisfactorily. The food processing sector in India covers a wide range of finished and intermediate raw products. The Indian Government has allowed 100% FDI (foreign direct investment) in the sector of food processing through automatic route. Thus Foreign Direct Investment not only supplements and complements domestic investment but also brings best managerial practices and state-of-art technology thereby offering better access to domestic industry and foreign technology. One of the biggest in terms of export, consumption and production prospects is the Indian food processing market.