Impact of Macroeconomic Factors on Food Processing Sector of Indian Economy

The study tries to examine the macroeconomic variables of Indian economy and its impact on food processing sector of India. Many studies have supported the impact of macroeconomic variables on financial structure but less research has been done in the area of Food Processing Industry (FPI). FPI is one of the emerging sectors of Indian economy. To maintain its consistency investments are necessary. A proper mix of company's financial structure will help in attracting investments. Also the present study suggests economic variables of immediate concern for restructuring purposes. For establishing the relationship between financial structure and macroeconomic variables Regression Analysis has been used. Financial Structure of Top Ten food processing companies listed in Bombay Stock Exchange (BSE) is selected for the study. On the other hand growth rate, monetary policy, FDI, Inflation, Stock prices, Interest rate is considered as macroeconomic variables of India. The result indicates that there is a significant impact of macroeconomic variables on Equity Capital and Short term funds while insignificant impact on Reserves and long term funds.