Most Commented Posts
Agro-based industries utilize agricultural output from plants and animals as raw resources. They also add value to agricultural produce by processing and manufacturing marketable and usable items. Based on the nature of their activity, we shall categorize agro-based industries as agro-produce processing units, manufacturing units, and agro service centers. This section will study some of India’s most critical agro-based industries.
1. Textile Manufacturing
The textile business is concerned with designing, manufacturing, distributing, and marketing yarn, textiles, and ready-to-wear clothes. It comprises factories that produce cotton textiles, woolen textiles, silk textiles, synthetic fibers, and jute textiles. The industry is crucial to the Indian economy because it is the second-largest employer after agriculture. It also employs around 10.5 crore people directly and indirectly. India is also the world’s second-largest manufacturer and exporter of textiles and garments, accounting for 5% of worldwide trade. In 2018-19, it provided 12% of India’s total exports.
2. Sugar Industry
The sugar industry supplies sugar, which is an essential component of the human diet. During 2019-20, India went back to second place in sugar output, narrowly losing the top rank to Brazil. India generated 28.9 million metric tonnes of sugar, accounting for nearly 17% of 166.18 million metric tonnes of global sugar production. Today, the yearly output of the sugar sector is roughly INR 80,000 crores. Sugar output is predicted to increase by 17% in 2020-21.
3. Industry of Vegetable Oil
The Indian vegetable oil business produces around 5% of the world’s vegetable oil. India is the world’s largest user of edible oils. The estimated local demand for vegetable oil is more than 23 million tonnes, with imports filling most of the gap. In addition, India is the world’s largest importer of edible oils, with 15 million tonnes imported yearly, accounting for roughly 14% of global vegetable oil imports. It employs millions of people, generates an average domestic turnover of USD 10 billion per year, and earns USD 90 million in foreign exchange.
4. Tea Industry
Tea is the world’s second most drunken liquid. Global tea production increased at a CAGR of 2.97 percent between 2014 and 2018. With a total output of 1,339.70 million kgs in 2019, India became the second-largest tea producer. In addition, India is one of the world’s top tea consumers, consuming almost three-fourths of global production. It employs approximately 2 million people.
5. Industry of Coffee
The rise in coffee consumption sparked a cafe culture in India, with prominent brands such as Cafe Coffee Day, Costa Coffee, and Starbucks opening multiple locations. India is the world’s sixth-largest producer and fifth-largest exporter of coffee. During 2019-20, coffee production totaled 2,99,300 million tonnes, accounting for 3.14 percent of global coffee production. India exports 70% of its domestic coffee crop, with a USD 738.90 million export in 2019-20.
6. Leather Industry
The fashion, furniture, interior design, and automobile industries fuel the demand for leather. The Indian leather industry produces around 12.93 percent of the world’s leather hides/skins. In addition, India’s overall exports of leather and leather products in 2019-20 were USD 5.07 billion. The global leather industry is transferring its manufacturing base from industrialized to developing countries. Click here to know about small-scale industries.