Food processing and agro industries have been accorded high priority with a number of important relieves and incentives.
Capital goods are also freely importable, including second hand ones in the food processing sector.
Wide ranging fiscal policy changes have been introduced progressively. Many processed food items are totally exempt from excise duty. Corporate taxes have been reduced and there is a shift towards market related interest rates. Repatriation of profits is freely permitted in many industries except for some, where there is an additional requirement of balancing the dividend payments through export earnings. Food processing industry is one of the thrust areas identified for exports.