Agro Based Industries in India List, Type, Example For UPSC

Agro Based Industries In India List, Type, Example For UPSC : So, here we are to talk about the details on Agro-based Industries. So, let us first understand the term Agro-based Industries. Like we are getting hints from the word only ‘Agro’, the first thing that clicks in our mind is that it is something related to agriculture, and that’s absolutely right.

Agro-based industries are the industries that are purely dependent on agriculture for their inputs. There are a lot of industries in India that are entirely dependent on Agriculture for their production and we are going to discuss the details of such industries further in this article. Now, if we talk about the scope of this industry in India, then let us tell you that it is pretty much high.

agro based industries in india

Agricultural sector in our country, contributes about 18% in India’s GDP, and you will be surprised to know that according to the latest statistics, about 42% of India’s population is dependent on the agricultural sector to earn its bread and butter.

Agro Based Industries In India List, Type, Example For UPSC

Though, there are a lot of industries, but, we are here to particularly talk about this classification of Industries which is Agro based industries, which use plant and animal based products as their raw materials. Food processing, vegetable oil, cotton textile, dairy products and leather industries are some of the examples of agro-based industries.

Now, talking about the type of Agro based Industries, so there are four types of Agro-based industries. Details are discussed below in the table, just go through them –



Agro-produce Processing Units So, if we talk about this unit, so it is not involved in the manufacturing of the raw material to make an end product from it. It basically deals in preserving those raw materials and transporting them at cheaper prices. Examples – Rice mills, dal mills, etc
Agro-produce Manufacturing Units Now, this unit is something which deals in the manufacturing of new products. Here, the finished good is entirely different from the raw material. Examples – Sugar factories, textile mills, etc
Agro-inputs Manufacturing Units These are the units, which basically deals in the manufacturing of products either for the mechanization of agriculture or increasing agricultural productivity. Examples – Pesticides, fertilizers, seeds, agricultural implements
Agro Service Centres These are the service centres which are engaged in the servicing or repairing of farm equipments. Examples – Repairing and servicing of tractors, diesel engines, pump sets

Now, let us understand that what is the importance of Agro-based industries in our country. So, the detailed importance is provided below in the table.

Importance Of Agro-based Industries In India

Industrial production will increase
Landless agricultural labor and tribal population is rural and backward areas will get employment
Alleviation of poverty by providing a steady source of income
Standards of living in rural areas will increase
Will provide balanced growth between agriculture and industry
Dispersal of industries instead of concentrating at a particular place

Problems Faced By Agro-based Industries In India

Perishable Nature Of Products As agricultural products are perishable in nature, so it requires huge cold storage and good road connectivity so that these products can be supplied in regular time intervals.
Seasonal Nature As the crops are seasonal in nature, so farmers in India have a very small window to reap the benefits of their hard labor. As climate change has affected weather patterns, so it has an adverse effect on agricultural production.
Small Landholdings Still a lot of farmers are there who have small land holdings where they can do the farming and earn their livelihoods, so they have to rely on subsistence farming.
Competition There is a lot of competition in this sector, as other countries like Bangladesh are offering similar advantages at low labor cost and soil fertility.
Variability This industry involves variability in terms of quality and quantity. Quality of the raw material suffers because of the lack of standardization and quantity suffers because of weather and soil conditions.
Limited Knowledge In rural areas of the country, still there are many farmers who have limited knowledge about farming. They are still following the traditional methods and are not aware about the latest technologies used to increase the agricultural production, which is again a hurdle.

Major Agro-based Industries In India

Textile Industry

It is the biggest employer industry in the country after agriculture. It is concerned with the designing, production, distribution of yarn , fabric or ready made clothes. It has six units namely -cotton textiles, woollen textiles, silk textiles, synthetic fibers and jute textiles. It is a self reliant industry which produces everything from raw material to final goods.

Sugar Industry

Our country is the largest consumer of sugar, and the fundamental source of sugar production in our country is sugarcane. Though, this industry employees a lot of people, but still it is not for the whole year because farmers dependent on this are active only during the harvesting months of sugarcane.

Vegetable Oil Industry

Vegetable oil is the primary source of fat in Indian food. Almost everything that we cook, we use vegetable oil for cooking. The primary sources to abstract this oil are coconut, mustard, and groundnut.

Tea Industry

This industry is working throughout the year. Major tea producing states in our country are Assam, West Bengal, Kerala. This industry is employing nearly about 1 million people and produces approx about 1 billion kilos of tea every year.

Coffee Industry

Over the last two decades the number of coffee lovers have increased in our country and there are some reasons for that – global exposure, increase in the income, lifestyle changes and many more things. Because the number of consumers for coffee have increased, our country has become third largest producer of coffee in Asia.

Leather Goods Industry

The Indian Leather industry accounts for around 12.93% of the world’s leather production of hides/skins, which come from pelts of cattle and large animals and small animals like sheep and goat. In India, Kanpur is known for leather industries as it has some finest leather industries known for their high quality products. It involves a large workforce, hence giving employment to a lot of youths in our country.

So, these were some of the important details that we wanted to share with you all regarding this topic. We hope you will like it. If you want some more related stuff related to this, you may send your suggestions in the comment box.

Updated: March 24, 2023 — 7:30 pm

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