The Liberalisation Effect on Variability in Net Income of Food Processing Industry in Kerala – An Empirical Evaluation

As a linkage factor between two pillars of economy i.e., Agriculture and industry, the food processing sector is an important segment in India. The main motto of the food processing sector is the value addition of local tastes and presenting it to the world market. Food processing sector in India is going through drastic changes in the liberalization age and it has been able to adopt tailor made innovative methods of development to compete in the global market. This paper attempts to analyse the returns of net income to the extent to which variation can be explained by the rate of increase in inputs such as invested capital, number of workers and total input. The data for regression analysis is made available from Annual Survey of Industries. Most significant input element that could explain the variability in net income before and after liberalization is identified and explained to compare values of net income returns before and after liberalization