The Indian economy is significantly impacted by the agriculture industry. Several sectors that rely on agriculture have grown recently, accounting for over 17% of the nation's GDP. The majority of people in India are employed in this area. Paper, textiles, sugar, and vegetable oil are examples of agro-based products, which are primarily made from the raw materials of agricultural goods.
Agriculture provides a significant portion of the raw materials and other essential outputs for agro-based businesses. The relationship or interdependence between agriculture and industry is intended to boost the nation's development, growth, and income. In addition to allowing the rapid production of agricultural products, the establishment of agro-based companies also generates employment for the country.
Read the following article if you want to learn more about India's agro-based industries or if you want to establish a business in this field.
Types of Agro-based Industries
Agro-processing Industries
The processing industry, one of the first agro-based sectors, does not create a new product from the agricultural output. Instead, by properly packaging with the right preservatives, this business places itself in the supply chain to maintain agricultural products for extended periods. These sectors produce goods that are made to facilitate better handling, transport, and storage further along the supply chain. The textile and sugar industries are two examples of agro-based industries.
Agro-products Manufacturing Industries
In the production of agro-products, agricultural output is used to create an entirely new product. The majority of agricultural products are unsuitable for customers to consume right away. After processing agricultural products, these industries create new products. An excellent example of an agro-produce manufacturing facility is a sugar factory.
Agro-input Manufacturing Industries
This industry's elements help increase agricultural productivity. Such industries are well represented by the production of fertilizers and farm implements.
Agro-service Industries
One of the essential segments of India's agriculture industry is the agro-service sector. It includes services like agricultural consultation, research, equipment supplies and maintenance, and education.
Top 10 Agro-based Industries in India
Textile Industry
The design, production, distribution, and marketing of yarn, textiles, and ready-to-wear clothing are all done by the textile business. Here, textiles made of cotton, wool, silk, synthetic fibers, and jute are all manufactured. As the second-largest source of employment in India after agriculture, the sector is essential for the economy of the nation.
The largest agro-based industry in India is the textile sector. This industry is mostly focused on producing clothes. It is a self-sufficient industry that produces everything for its customers, from raw materials to completed goods with value-added products.
Food Processing Industry
India has the second-largest population in the world and one of the largest food processing businesses. Nearly 32% of the food business in India is comprised of the food processing sector. With the introduction of technology at many points throughout the supply chain, it is still expanding quickly. According to the CII (Confederation of India Industries) by FY 2024, the food processing sector has the potential to bring in an estimated INR 53,435,52 billion.
One of India's most significant food processing businesses is the processing of dairy products, sugar, vegetable oils, and tea and coffee.
Dairy Industry
One of India's most significant industries, the dairy sector contributes up to 4% of the nation's GDP. It is one of the finest ways for Indian farmers to get extra money, making it one of the most well-liked occupations in rural areas all around the nation. It has been practiced for many years throughout India, leading to India providing 20% of the world's milk supply. Milk is used as the industry's primary raw material, and its finished products include butter, cheese, cream, condensed milk, dried milk, packaged milk, ice cream, etc.
The output of milk in India is predicted to increase to 108 million tonnes by 2025. In the next four to five years, there is a ton of room for growth in the milk processing and milk product manufacturing industries.
Sugar Industry
Sugar is a vital part of the human diet, and it is supplied by the sugar industry. In terms of sugar production in 2019–20, India fell to the second position, barely losing the top spot to Brazil. India produced 28.9 million metric tonnes of sugar, which is almost 17% of the 166.18 million metric tonnes of sugar produced worldwide. Currently, India has emerged as the largest producer and second-largest exporter of sugar.
Vegetable Oil Industry
About 5% of the world's vegetable oil is produced in India. The largest consumer of edible oils worldwide is India. Additionally, with 15 million tonnes imported annually, or 14% of all imported vegetable oil, India is the world's largest importer of edible oils. Vegetable oil is the main source of fat in the Indian diet. Popular in India is a form of hydrogenated vegetable oil called vanaspati. Various places use different materials depending on the technology employed. The raw materials used in this industry most frequently include groundnut, mustard, and coconut.
By 2025, the edible oil market is anticipated to expand by more than 60%. More than one-third of the market is taken up by soy oil, followed by palm, mustard, and sunflower oils.
Tea Industry
Tea is the second most consumed beverage on earth, right behind water. Additionally, India consumes almost three-quarters of the world's tea production, making it one of the largest consumers in the world. The three states that produce the most tea are Assam, West Bengal, and Kerala. The sector employs around 1 million people and is operated all year.
Coffee Industry
Although India has traditionally been a tea-loving nation, there has been a remarkable rise in the number of coffee consumers over the past 20 years, and the country is now the sixth-largest producer and exporter of coffee in the world. 2,99,300 million tonnes of coffee were produced in 2019–20, making up 3.14 percent of all coffee produced worldwide.
Leather Goods Industry
Leather is one of the world's most popularly traded goods. About 12.93% of the leather hides and skins produced worldwide come from the Indian leather sector. Additionally, India exported USD 5.07 billion worth of leather and leather-related goods in 2019–20.
The main raw materials used in this industry are hides and skins from cattle, large animals, and small animals like sheep and goats. India is known for its leather industry, and Kanpur is home to some of the greatest leather manufacturers in the nation with a reputation for producing high-quality goods. This firm is known for hiring a large number of young individuals, opening up numerous career opportunities for the youth of our nation.
Bamboo Industry
In the eastern parts of India, bamboo plantings are a common activity and a significant source of revenue. As environmental problems are highlighted, the demand for sustainable items made of bamboo is rising.
Like sugar cane, the paper sector is likewise supported by the bamboo industry. Bamboo is a quickly expanding product, and the cellulose fiber it produces is a significant raw material in the production of paper.
Jute Industry
The Hooghly River's banks are home to 60 of the state's 70 jute mills, making the jute industry one of West Bengal's most notable industries. More than 4 million people in India depend on the jute sector for their livelihoods, making it a substantial agro-based economy. The jute industry is now growing quickly and has become a significant contributor to our economy.
These agro-industries are all essential to the health of the national economy. because they support our economy and employ a significant section of our people. The demand from these firms also affects how much money farmers make. The final crop is completely dependent on industry demand after it is produced, however other factors do play a part. Because of this mutual dependence, the agricultural and agro-based industries both need one another to grow.
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Which is India's largest agro-industry?
The largest agro-based industry in India is the textile sector, especially the cotton textile industry.
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What are the examples of agro-based industries?
Agro-based industries include sugar industries based on sugarcane, cotton textile industries, etc. that are based on agricultural raw materials. One of the most well-known agricultural sectors is the production of cotton-related goods like clothing and jackets.
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Where are agro-based industries located in India?
Over 460 sugar mills are located throughout the nation in Uttar Pradesh, Bihar, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat, Punjab, Haryana, and Madhya Pradesh, among other states. In Uttar Pradesh and Bihar, there are 60% of the mills.
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Why India is called an agro-based country?
India is an agricultural nation with rich plains and a large number of perennial rivers. Approximately 72% of its people live in rural areas. People are mostly dependent on agriculture—nearly 70%. India uses almost three-fourths of its agricultural area for growing food.
