10 Agro-based Industries in India Supporting Farming Practices and Economy

India is a country of rich cultures, ancient traditions, and a vast agricultural heritage. It is deeply with the monsoon, the harvest, and the ongoing hard work of our farmers. However, the narrative of Indian agriculture goes much further than the cultivation we see in the field. It branches out, linking with manufacturing, innovation, and global trade to create a massive synergy of what we term agro-based industries.

India’s agro-based sector is flourishing, where innovation, government support, and demand for agricultural processed and value-added products in domestic and international markets are on the rise. Here are the top 10 agro-based industries in India that drive our national economy, feed the nation and export widely.

What Are Agro-based Industries?

Before entering the list of the top 10 agro-based industries in India, let us understand the meaning of the term agro-based industry. These are manufacturing units that use agricultural products, either plant or animal-based, as their primary raw materials to produce finished or semi-finished goods. They can range from small-scale village enterprises to massive, multi-national corporations. Agro-based industries transform the products into final products that are ready to consume, which creates various jobs and employment opportunities, encourages agricultural production, increases export opportunities, and contributes to food security.

India’s Top 10 Agro-based Industries 2025

1. The Food Processing Industry

This is the dynamic segment in India’s agro-based sector. The food processing industry covers everything from grains, fruits, vegetables, and dairy. It’s about transforming raw crops into consumable food products in the market like packaged snacks, beverages, ready-to-eat meals, juices, jams, pickles, bread, and so much more.

This sector attracts a large investment, promotes employment, and reduces post-harvest loss by preserving perishable and environmentally friendly foods.

2. The Textile Industry

The Textile Industry is one of the cornerstones of India’s agricultural sector, from the cotton fields to the jute looms. The industry uses natural fibres, such as cotton, jute, silk, wool, as raw materials to manufacture fabrics and ready-made garments. India ranks as one of the top cotton and jute producers in the world.

The textile industry is one of the largest reliable industries in India, which provides millions of jobs in livelihoods that span from cotton farmers to weavers, dyers, and garment factory employees.

3. The Sugar Industry

India is the largest producer and consumer of sugar, and the second-largest exporter of sugar. The sugar industry highly depends on sugarcane, which requires a large amount of water.

The sugar industry provides direct and indirect livelihood to millions of sugarcane growers and thousands of workers in sugar mills. Even though the sugarcane industry is seasonal, the scale of its linkage to agriculture and the individuals employed in rural areas of sugarcane make it a crucial agro-based industry.

4. The Dairy Industry

India is the largest producer of milk and milk products in the world. The dairy industry processes raw milk into a variety of products, such as processed and packed milk, curd, paneer, ghee, butter, cheese, ice cream, and milk powder.

The dairy sector supports millions of small and marginal farmers, and individuals looking for part-time work to earn an income. Based on the growing demand for milk and dairy products throughout India, sustained profitability means dairy is an important part of the agro-based industries.

5. The Edible Oil Industry

From mustard oil to coconut oil, edible oils play an important role in cooking and are considered essential ingredients by most people. The edible oil industry uses oilseeds such as groundnut, mustard, soybean, sunflower, palm, and sesame to produce cooking oil from these oilseeds.

India is one of the top consumers of edible oils in the world and produces a vast amount of edible oils. This indicates that there is a massive unexplored potential for facilitating domestic oilseed production and processing to expand its contribution to the economy related to oilseeds. This indicates that the edible oil industry directly supports oilseed farmers and supplies an essential food commodity to every household.

6. The Jute Industry

The Jute Industry converts jute fibre into a variety of products like carry bags, carpets, ropes, and fabrics. Jute is often considered a golden crop for being a natural, biodegradable, and environmentally friendly substitute for synthetic and plastic products.

There is strong competition in the market, but as the characteristics and the global awareness of environmental sustainability match, there is a growth of interest in jute products, supporting farmers to produce more and contribute to environment-friendly activities.

7. The Tea and Coffee Industry

India is one of the greatest producers and consumers of tea in the world. Along with tea, coffee is also produced widely and is consumed worldwide. The tea and coffee industry consists of the growing and harvesting of tea leaves and coffee beans, to the processing, blending, and packaging of these items. 

Large numbers of workers are employed in the process. The tea and coffee industries provide a key economic impact to India as a major export commodity, bringing in valuable foreign currency and establishing unique Indian flavours internationally.

8. The Rubber Industry

Though often misunderstood as an agro-based industry, the Rubber Industry is predicated on natural rubber, mainly grown in the states of Kerala and Tamil Nadu. The rubber industry takes the latex from the rubber tree and processes it into many products, including tyres, footwear, belts, and other products.

9. The Spices Industry

India is famous for producing spices widely. The Spices Industry engages in several tasks such as growing, drying, grinding, blending and packing a large range of spices like chilli, turmeric, cumin, coriander, cardamom, and pepper. 

This industry is vast and includes a group of small and marginal farmers who are growing spices. The spices from India are valued all over the world because of their unique flavour.

Farmers must check the mandi rates regularly which helps in deciding the price.

The Animal Feed Industry

As it doesn’t contribute directly to the food for humans but it is an important agro-based industry which involves crops produced as raw materials to bring market products to feed animals.

Animals and their good health contribute to the availability of products to feed humans. The perfect example is milk.

Check the mandi bhav and stay updated with relevant information on the Shuru app.

Conclusion

The agro-based industries in India play a crucial role as they are important in every aspect, including the economy, engagement and opportunities. These industries create a relationship between sellers, farmers and buyers. They represent a dynamic, evolving landscape of opportunity.

FAQs on Agro-based Industries in India