For a developing country like India Innovation is a vital point for success and the greatest pillar of survival for any organization. However, Impediments to innovation decrease innovative activities of the firm and therefore they need to be overcome over time. Based on the firm-level survey data, this study identifies the main hurdles standing in the way of innovation at every level of organization with the structured questionnaire and interview in the Food Processing Businesses in Maharashtra – Western state of India. The questionnaires were distributed for 100 responses to the company owners and managers for needed data. The data gathered through a questionnaire were analyzed quantitatively with descriptive statistics while the data gathered through interviews was analyzed qualitatively.  The findings of this study indicate that major barriers in the process of Innovation are Cost of Finance, Complexities in Assisting Government support for availing Finance, Market dominated by Established businesses, Uncertain Demand for Innovative products, lack of resources, Difficulty in finding partners for Innovation. Based on the findings, the barriers are subdivided into two segments: External and Internal Barriers. Further, the research includes major steps taken by firms to handle barriers such as increased investment in R & D, Arranged brainstorming sessions to come up with new ideas, increased communication from top to bottom level, improved processes to reduce costs and enhanced quality products. The findings from the study can be utilized for the policy implications and innovation management in Food processing organizations in India.

Keywords: Handling of Innovation barriers, Food Processing Industry, Policy Implications.