India, known as the land of agriculture, has a rich and diverse agro-based industry. With a vast agricultural landscape and a large population dependent on farming, a strong foundation has been developed for various agro based industries in India. These industries not only contribute significantly to the Indian economy but also play a crucial role in generating employment opportunities to millions of people.
In this blog, we will discuss agro industries, their classification, the importance of agro based industries in India, agro based industry examples, the top 10 agro based industries in India, and more.
Agro based industry is a type of industry that uses agriculture to derive its primary raw materials and supply necessary products to the industry. The agriculture industry primarily handles work regarding processing, converting, and adding value to farming products, which are further converted into finished products ready to be delivered to the market.
They can further be divided into two main categories:
Agro-based industries are an important part of the economy of many countries. They offer employment for millions of people and contribute to the country's GDP. In addition, they help to reduce poverty and improve food security.
Here, we have listed the top 10 agro based industries in India. These include the food processing industry, dairy industry, sugar industry, and tea industry, among others.
The food processing sector is one of the largest agro based industries in India. It involves the processing, packaging, and preservation of agricultural goods such as fruits, vegetables, grains, dairy products, and meat.
The industry has witnessed significant growth due to changing consumer preferences, increasing urbanisation, and a rise in disposable income.
India's food processing industry not only caters to the domestic market but also exports a considerable quantity of processed food products to various countries.
The Indian food processing industry is worth 380 billion dollar and is forecasted to reach 540 billion dollar by 2025. It contributes 8% to the National Income of India.
India is the largest milk-producing country globally, making the dairy industry one of the best agro based sectors. The dairy industry involves the processing of milk and its by-products, like butter, ghee, cheese, yogurt, and ice cream.
With a vast network of milk cooperatives and dairy farms, the industry has contributed significantly to rural employment and economic development. Dairy industry along with animal husbandry contributes 4.5% of India’s GDP. This sector’s contribution to agriculture stands at 24% and is valued around INR 10 lakh crores – the highest in the world.
Additionally, the dairy industry has played a crucial role in improving the socio-economic status of farmers through the White Revolution or Operation Flood, which was started in 1970 by the ‘Milkman of India’ Dr Verghese Kurien.
India is the 2nd-largest producer of sugar in the world, making the sugar industry a significant contributor to the agro-based sector. The industry primarily focuses on the extraction and refining of sugar from sugarcane.
It generates employment opportunities for a large number of people, especially in rural areas. In terms of its contribution to India’s GDP, it stands at 1.1%.
The sugar industry also produces by-products like molasses, bagasse, and ethanol, which have various applications in industries such as alcohol, paper, and power generation.
The tea industry is one of the oldest and most prominent agro based industries in India. Renowned for its high-quality tea production, India is the second-largest tea producer globally. The industry is concentrated in regions like Assam, Darjeeling, and Nilgiri.
The tea industry not only contributes to the economy but also provides employment to a significant workforce, especially in the tea plantations.
Indian tea is famous worldwide and is exported to several countries. In fact, India is among the top 5 tea exporters of the world, which is about 10% of total exports.
The cotton textile industry is a crucial agro based sector that uses raw cotton as the primary input. India is one of the biggest producers and exporters of cotton textiles. The industry includes various processes such as spinning, weaving, dyeing, and printing of cotton fibres to produce fabrics and garments.
The cotton textile industry has played a pivotal role in promoting the textile sector and generating employment opportunities, particularly in states like Gujarat, Maharashtra, and Tamil Nadu.
Statistically talking, Indian textile contributes around 5% of national income of India, 14% of manufacturing sector, and 11% of total exports revenue of India.
The jute industry is a significant agro based industry in India, focusing on the production of jute fibres and jute products. India is the leading producer of jute globally and has a strong foothold in the jute industry.
The versatile jute fibre finds applications in the manufacturing of sacks, bags, carpets, and various other products. The jute industry has a considerable impact on the rural market, providing direct employment to 1.4 lakh people in tertiary sector and 2.6 lakh people in manufacturing sector.
India is renowned for its rich and massive range of spices, making the spices industry an important agro based sector. The country produces and exports a wide variety of spices, such as pepper, cardamom, turmeric, coriander, cumin, and cinnamon.
The spices industry not only adds flavour to Indian cuisine but also contributes significantly to the country's export earnings.
It provides employment opportunities to farmers, labourers, and traders involved in spice cultivation, processing, and trade.
The poultry industry is a booming agro based sector in India, involved in the rearing, breeding, and processing of poultry birds. With an increasing demand for poultry products like chicken and eggs, the industry has witnessed significant growth.
It has provided livelihoods to a large number of people, particularly in rural areas. The poultry industry has also adopted modern technologies and practices to improve productivity and meet the growing demand for poultry products.
The fertiliser industry plays a crucial role in the agricultural sector by providing essential nutrients to enhance crop growth and productivity. India has a significant fertiliser industry that produces chemical fertilisers, organic fertilisers, and bio-fertilisers.
The sector has contributed to the green revolution by ensuring the availability of fertilisers to farmers at affordable prices. It also supports the agricultural sector by promoting soil fertility and sustainable farming practices.
This sector contributes 11% of the total industry output in India, and approximately 3% to the national income of India.
The floriculture industry is an emerging agro based industry in India, focusing on the cultivation and trade of flowers and ornamental plants. India has favourable climate conditions for growing a wide variety of flowers.
The floriculture industry caters to both domestic and international markets, supplying cut flowers, potted plants, and floral extracts. The industry has tremendous potential for growth, generating employment opportunities and boosting exports.
Different agro based industries require different conditions to operate. However, the use of raw materials is the only common thing among all these agriculture industries. Some Agro based industry examples are:
The agro-based industries in India play an essential role in driving economic growth, providing employment opportunities, and contributing to the country's economic growth. All these factors show the importance of agro based industries in India.
The top 10 industries mentioned above showcase the distinct agricultural resources and strengths of India. These industries not only meet domestic demand but also cater to global markets, making India a significant player in the global agro based sector. With favourable government policies, technological advancements, and a focus on sustainable practices, the agro based industries in India are poised for further growth and success in the coming years.
Through this blog, we hope you learn what an agro based industry is and which are the top 10 agro based industries in India. If you want to learn more about the agro industries or want to see the agro based industries images, explore Tractorkarvan.
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