National Centre for Agricultural Economics and Policy Research (NCAP), New Delhi-110 012.
This paper has assessed the contribution of agriculture to Indian industry through supply of raw materials and demand for inputs. The selected industries are of two categories, namely major industry group (organized sector) and small-scale and household industries (unorganised sector). It has been found that the number of factories under major industry group is 45045, which employ about 31.89 lakh persons. The largest number of persons have been found engaged in the manufacture of food products and beverages. In the small-scale and household industries, one crore people are estimated to be engaged. The paper has also analysed the existing situation with regard to the agro-based industries and has stressed on the importance of diversification of industries based on agriculture. Various possibilities in the industrial use of important crops and livestock have also been discussed. The study has suggested research thrusts for a wider diversification of industries and various steps for planning and promotion of agro-industries in the country.
