• Debdatta SahaEmail author
Part of the Themes in Economics book series (THIE)


The economics of food processing is not identical with the economics of primary food sources from agriculture and animal husbandry. A region with an abundance of the latter might not be the hub of processing activity for food items. These raw inputs might leak out of this region to other destinations which provide a thriving environment for processed food. This is the case with Bihar, a subnational state in India, whose tryst with industrialization using food processing as the lead sector is the mainstay of the book. This chapter introduces the concepts that determine whether a region with abundance in raw agri-resources will also be the ideal destination for locating manufacturing units in food processing. The industrial ecosystem, consisting of entrepreneurs and their decision-making process, regional idiosyncrasies and constraints in the form of local demand as well as infrastructural bottlenecks and the government and its policies matter for the manufacturing for this discussion. This chapter sets the tone of the rest of the book by highlighting the importance of region-specificity in the analysis of particular industries, like food processing.


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© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.Faculty of EconomicsSouth Asian UniversityNew DelhiIndia

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