Exploring India's Agro-Based Industries: Backbone of Rural Economy

Updated On 28 Jul 2025

Textile industry utilizes raw material like cotton & jute to produce products like apparels. Today, Indian textile industry contributes 12% to exports, 13% to industrial production & 2.3% to the GDP.

Dairy Industry processes raw milk to produce products like butter, cheese and chocolates. Today, it contributes 4% to the GDP and India is the largest producer and consumer of milk globally.

Sugar Industry is considered second-largest agro-based industry in India. It utilizes raw materials like cane sugar to produce sugar, khandsari and jaggery. It contributes 1 - 1.15% to country's GDP.

The vegetable oil industry in India produces products like palm oil and olive oil. Today, India is the fourth-largest player in the world with a 6 - 7% share in global vegetable oil production.

Tea Industry is a significant contributor to employment generation and GDP growth. India is the second-largest producer of tea globally and earns about Rs. 6000 crore in foreign exchange (FY 2024).

Coffee Industry in India is a growing agro-based industry. Known for growing Robusta & Arabica varieties, India is the 7th largest producer of coffee globally with an export value of Rs. 11,072 crore.

The Leather Goods industry in India boasts a substantial raw material base, thanks to its largest livestock population in the world. Today, India is the 4th largest exporter of leather goods globally.

Jute industry in India is the oldest agro-based industry. Today, India accounts for around 75% of the global jute goods production, and the major jute products are shopping bags and blankets.

Bamboo Industry is a promising agro-based industry in India. With the largest area under bamboo cultivation in the world, India is the second-largest producer of bamboo, accounting for a 4% share.

More Details