A Study on Effect of Agriculture on Agro- Based Industries and Impact of Agro-based Industries on Indian Economy

Abstract

The paper is the result of a theoretical study made on agriculture and agro-based industries in India. The paper is an attempt to emphasize the impact of agriculture on agro-based industrial sectors and to analyze the problems and prospects of agro-based industries in India. The paper begins with the discussion of the definition of agro-based industries along with the types of agro-based industries. It has been found that agro-based industries are like the sunrise sector of the Indian economy in view of its large potential for growth and likely socio-economic impact specifically on employment and income generation. Studying the growth of agriculture and agro-based industries, the paper found that it is a joint process for achieving economic development of India having a quite strong agricultural base. In simple words, the paper throws light on the fact that agro-industrial integration is one of the right steps in this direction. Moreover it has also been found that the potential for agro-industrial development in India is largely linked to the relative abundance of agricultural raw materials and availability of low-cost labour. However, a study on the present condition of the agro-based industries of India showed that the agro-based industries of India are in the crisis, in spite of having undoubtedly high prospects for its development. The agro-based are facing various problems regarding lack of technology, non-availability of research lab for quality control, financial assistance and improper marketing channel. Thus, from the extensive theoretical study made on the topic it can be concluded that if this sector is properly developed, it can make India a major player at the international level for marketing and supply of agro-based industrial products opening the door for India’s economic development.