Agro Industry
Agriculture is the most integral part of Indian economy, and at present the country is among the top farm producers in the world. Agriculture is a source of employment for over 50 percent of the population. The sector contributes around 13.9 percent to the GDP. The overall production has seen a steep rise in the past six decades.
Gross Value Added by agriculture, forestry, and fishing was estimated at Rs. 19.48 lakh crore (US$ 276.37 billion) in FY20. Share of agriculture and allied sectors in gross value added (GVA) of India at current prices stood at 17.8 % in FY20. Consumer spending in India will return to growth in 2021 post the pandemic-led contraction, expanding by as much as 6.6%.
The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry.
Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. The Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.Principal agricultural commodities export for April 2020 – January 2021 was US$ 32.12 billion.
The organic food segment in India is expected to grow at a CAGR of 10% during 2015-25 and is estimated to reach Rs. 75,000 crore (US$ 10.73 billion) by 2025 from Rs. 2,700 crore (US$ 386.32 million) in 2015.
The processed food market in India is expected to grow to Rs. 3,451,352.5 crore (US$ 470 billion) by 2025, from Rs. 1,931,288.7 crore (US$ 263 billion) in year20. Importance of Agro-based industries in India. All branches of agro-based industry are important because:
1)Help in increasing industrial production.
2) Provide employment to landless agricultural labor and tribal population from rural and backward areas.
3) ensure the development and stability of rural economy through diversification and reduced dependence on agriculture.
4)Eensure the alleviation of poverty by providing steady sources of income and livelihood.
5) Earn much required foreign exchange for the country.
6) Improve the standard of living in rural areas.
7) Help in reducing the extreme inequalities in the distribution of income and wealth.
8) Are easy to establish.
9) Support balanced growth between agriculture and industry.
10) Help in avoiding wastage of perishable agricultural products.