A STUDY ON THE PROBLEMS OF WORKING CAPITAL OF FPIs IN KERALA

Abstract

Agriculture is a vital part of India’s economy. Agricultural sector provide in the order of 52 per cent of job in India and put in around 18.1 per cent to the GDP. In developing countries, agriculture is the stronghold of the economy. Magnitude of agro processing sector was first realized by the grievous famine of Bengal. Agro processing is now regarded as the sun rise sector of the Indian economy which has socio economic impact, distinctively on employment and income generation.Food processing industry accounts for about 14% of manufacturing GDP i.e., Rs 280000 crores and employs about 13 million people directly and 35 million people indirectly. Very good venture opportunities exist in many areas of food processing industry. Important amid them are fruit and vegetable processing industry, meat, fish and poultry processing, milk products, convenience food and drinks etc. Food processing industry has many challenges in front of it, ranging from infrastructures to human resources and technological backwardness. India will miss a golden-haired opportunity of using its vast agro livestock resources to strengthen its economy. Working capital is basically an indicator of the short term financial position of an organization and is also a overall measure of efficiency.