Export Processing Zones and Food Processing Industries in India

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Export Processing Zones and Food Processing Industries in India are an integral part of India's economy.

The export processing zones in India have their service centers in a number of states such as, Kandla (Gujarat), Santa Cruz (Bombay), Cochin (Kerala), Madras, Falta (Calcutta) and NOIDA (Delhi) and a seventh zone at Vishakapatnam (Andhra Pradesh) is yet to be established. Some of the basic benefits offered by the export processing zones in India are as follows:

Provides a number of infrastructural facilities which include fertile land, well-designed factory buildings with a wide range of facilities, proper roads, adequate supply of power and water as per requirements, and built-up sheds

Ensures customs clearance in all the activities carried out in the export processing zones without charging any extra money for it
Has set up banks, post offices, and clearing agents in the various service centers attached to each EPZ in India
All the export processing zones in India except the Santa Cruz (Mumbai), have food processing industries within the range

Food processing industry in India is among one of the biggest sectors known in terms of production, growth, consumption, and export. The turn over of this sector accounts for Rs.250, 000 crores (USD 69.4 billion) approximately and within it the value-added food products are estimated at ` 80,000 crores, which is USD 22.2 billion. This sector covers a wide range of edible items, such as, fruits and vegetables, spices and condiments, meat and poultry, alcoholic beverages, milk and milk products, fisheries, grain processing, and plantation. Other consumer products in the food processing sector include confectionery items, chocolates and cocoa products, mineral water, soya-based products, high protein food products, and so on. The Export Processing Zones and Food Processing Industries in India are made 100 percent export oriented by the Government of India ever since August 1991 and has also permitted for collaboration both with the local and global firms. The estimated FDI in this sector is accounted for ` 10,000 crores.

Some of the features of food processing industries in terms of export production are as follows:

Food processing zones are built in both the export processing zones as well as the free trade zones in India and it has been made 100 percent export oriented
The import of goods enjoy tax free privilege in all kinds of goods
The capital goods is spared up to 20 percent of the CIF value and are imported at a discounted rate
All the food items are free of levies, duties, and other taxes
The food processing units set up in the export processing zones hold 50 percent of foreign exchange reserves
50 percent of the total production in food processing units are allowed to sell the products in domestic market
The products exported are not liable for any corporate taxes and Minimum Alternate taxes

The Export Processing Zones and Food Processing Industries in India have not only contributed to the outstanding growth in the country's economy but have also provided a number of opportunities to millions of inhabitants.

Last Updated on 3/31/2011

Meaning of Export Processing Zones