In India the food processing industry is one of the sunrise industries whose capability has been identified well but not realized satisfactorily. The food processing sector in India covers a wide range of finished and intermediate raw products. The Indian Government has allowed 100% FDI (foreign direct investment) in the sector of food processing through automatic route. Thus Foreign Direct Investment not only supplements and complements domestic investment but also brings best managerial practices and state-of-art technology thereby offering better access to domestic industry and foreign technology. One of the biggest in terms of export, consumption and production prospects is the Indian food processing market. Though India is one of the biggest producers of food worldwide, with new reforms controlling the roost, it motivates commercialization. The food processing market of the country is setting up a vast number of investors across the world (Gutcho, 1991). Nevertheless foreign direct investment is critical for the economy not only because it adds to the resources of investment in some of the difficult factors but also because of the technology transfer and other skills which come along with foreign direct investment. In India the acceleration in FDI in the past two years is the identification of the developing economic strength of the Indian economy in food processing sector.