Agro Based Industries

By : Neha Dhyani

Updated : Sep 15, 2022, 7:47

Agro based industries are those industries that use agricultural produce as raw material for manufacturing. These industries are consumer-based, meaning that the product manufactured by these industries are directly sold to the customers. In India, agro based industry comprises of the textile, sugar, newspaper, and vegetable oil industries. Agricultural products are used as raw materials in these businesses.

Types of Agro Based Industries

There are four main types of agro based industries: agro produce processing units, agro inputs manufacturing units, agro produce manufacturing units, and agro service centers. Find the details about the several types of agro based industries in India below:

  1. Agro Produce Processing Units - This industry is concerned with processing the agro based raw materials and preserving them for later use. It is also concerned with utilizing by-products of agricultural raw materials.
  2. Agro Produce Manufacturing Units - This agro based industry is concerned with the manufacturing of raw materials. The finished good after the manufacturing is completely different from the used raw material.
  3. Agro Inputs Manufacturing Units - The products manufactured in this industry are used as inputs in improving agricultural production.
  4. Agro Service Centers - These service centers are concerned with the repairing and servicing of all farm-related equipment. This industry is a part of agro based industries because it specifically deals with agro equipment.

Examples of Agro Based Industry

As mentioned above, agro based industries are of different types and operate in different ways. However, the one thing in common is that all types of industries use agricultural produce as raw materials. Find some of the examples of agro based industries:

Type of Industry


Agro Produce Processing Units

Dal and Rice processing mills

Agro Produce Manufacturing Units

Bakery, Sugar factory, Textile factory

Agro Inputs Manufacturing Units

Pesticides, Fertilizers, Tools

Agro Service Centers

Servicing and Repairing farming equipment such as Tractors, Diesel Engines, etc.

Agro Based Industries in India

There are many agro based industries in India. These industries cater the best of manufactured and processed agricultural produce to the final customer. The list of agro based industries that are prominent in India is given below:

Agriculture Based Industries in India

Textiles made of cotton

Vegetable Oil Industry

Textiles made of wool

Tea & Coffee Industry

Textiles made of silk

Textile industry made of jute

Fibres made of synthetic materials

Leather Goods Industry

Agro Based Industries in India - Overview

Agro based industries in India provide roughly 18 percent of India's GDP. According to recent figures, about 42 percent of India's population relies on agriculture to make a living. Here is the overview of different agro based industries in the country:

Textile Manufacturing

It holds a unique role in the Indian economy, making a significant contribution to Agro based industries in India (14%), employment creation (35 million people directly, second only to agriculture), and foreign exchange gains (about 24.6 percent). It provides 4% of the country's GDP.

The country's sole industry is self-sufficient and comprehensive throughout the value chain, from raw materials to the highest value-added products.

Cotton Textile

Cotton textiles were made in ancient India using hand spinning as well as handloom weaving techniques. Our traditional businesses experienced a setback during the colonial period since they couldn't compete with England's mill-made textiles. There are over 1600 cotton and human-made fiber textile factories in the country today.

The private sector accounts for about 80% of these, while the public and cooperative sectors account for the remaining 20%. There are thousands of small agro based industries in India with four to ten looms. Cotton textile manufacturing was initially focused in Maharashtra and Gujarat's cotton-growing belt.

Sugar Industry

India is the world's second-largest producer of sugar, but it is the world's largest producer of jaggery. The raw material utilized in this sector is hefty, and its sucrose concentration decreases during transportation.

Uttar Pradesh, Bihar, Mumbai, Karnataka, Tamil Nadu, Andhra, Gujarat, Punjab, Haryana, and Madhya Pradesh, have over 460 sugar mills. Uttar Pradesh and Bihar account for 60% of all mills. Because this is a seasonal enterprise, it is well-suited to the cooperative sectors.

Jute Textile

India is the world's largest manufacturer of raw jute and jute products and the world's second-largest exporter after Bangladesh. In India, there are approximately 70 jute mills.

There are approximately 70 jute mill agro based industries in India. The majority of them are in West Bengal, mostly along the Hugli River's banks.

The Hugli basin's location is due to several factors, including proximity to jute-producing areas, low-cost water transportation backed by a decent connection of railways, roadways, and rivers and streams to facilitate raw material movement to mills, abundant water for raw jute processing, and cheap labor from West Bengal and neighboring states of Bihar, Orissa, and Uttar Pradesh. As a large city, Kolkata provides banking, insurance, and port services for jute exports.

Indian Leather Industry

The Indian leather agro based industries in India produce 12.93 percent of the world's hides/skins, derived from cattle pelts, large animals, and small animals such as sheep and goats.

Kanpur is known in India for its leather industry since it has some of the best leather factories in the country, all of which are noted for producing high-quality goods. It necessitates a huge workforce, resulting in the employment of many young people in our country.

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FAQs on Agro Based Industries in India

Q1. What is agro based industry?

Industries that manufacture or process agricultural produce as raw material are known as agro based industries. These industries process or manufacture agricultural produce to create valuable items that are later sold to customers.

Q2. What are agro based industries examples?

The agro based industry is vast in India. Here are some examples of agro based industries:

  • Textile industry
  • Rice and Dal mills
  • Vegetable oil industry
  • Leather goods industry

Q3. What are the features of agro based industries?

Agro based industries are responsible for contributing to the GDP of a country significantly. The features of agro based industry are given below:

  • Uplifts the rural economy
  • Can help reduce the disparity between rural and urban areas
  • Can help improve the standard of living
  • Useful for decentralization and dispersal of industries

Q4. Which is the largest agro based industry in the world?

Food processing businesses make up the largest agro based industry in the world. On the other hand, the sugar industry forms the second-largest agro based industry in India.