India is basically an agrarian economy but the performance of agriculture sector is not very remarkable due to obvious reasons like seasonal nature, low productivity etc. This calls for a drastic relook into the primary sector of the Indian economy as India is 1.20 billion population country. Moreover, the future of this country in terms of food security and food requirement and optimum utilization of agricultural products lies in the promotion of agro-based industries. This study is carried out to study the labour and capital productivity of agro-based industries in different states of the union on different parameters.