FOREIGN DIRECT INVESTMENT AND MAKE IN INDIA POLICY IN FOOD PROCESSING INDUSTRY AND ITS IMPACT ON SOCIETAL LIFESTYLE OF NORTH EAST INDIA

After introducing the liberalization Policy of 1991, FDI entered in India and it has made a remarkable change in the economic and societal scenario of India. Foreign Direct Investment made by the companies of developed countries is the reason for rapid industrialization, growth of consumer market and service industry in India and better standard of living of Indian citizen in India. But Foreign Direct Investment has not properly entered in the traditional retailing sector of India. It has been a long controversy among political parties of India whether to invite FDI in the retailing sector of India or not. It is true that the developing economy of India need FDI in the retail sector since FDI comes with the promises of better employment opportunities to local people, introduction of better and advanced technology in the production and retailing process and providing better standard of living to Indian citizen. But if protectionism measure is used, then FDI is criticized by political parties since there is danger of closing down of ineffective retail outlets, danger of losing income for retail shop owners, danger of elimination of middlemen or broker in the distribution system etc Similarly the Government of India introduced ‘Make in India’ policy on 25th September 2014 with the objectives of encouraging domestic companies and MNCs to produce their quality products in India. The North East retail market is characterized by traditional unorganized marketing, ineffective customer centric marketing approach and lack of entrepreneurship and Government assistance especially to the marketing of perishable goods. The introduction of FDI and Make in India policy in the retail sector of North East India is therefore essential. This paper consists of a study on the introduction of FDI and Make in India policy in the retail sector of North East India with special reference to marketing of perishable goods, its impact on societal lifestyle of North East India.