Indian economy is basically agrarian economy. Agriculture sector provides about 15 percent of India’s national income, 22 percent of our GDP and about 58 percent of our labour force is employed in the agriculture sector (Ministry of finance (2015) “Economic survey 2014-2015”, Union budget, Government of India).

Agro base industries are those industries which derive their raw material from agricultural products. Cotton textiles, edible oil, guar gum, sugar, food processing, industries extract their raw material from agriculture; these are therefore called agro based industries. Agro based industries depends on the raw material produced by the agricultural sector. Agro based industry is important from the point of view of contribution to industrial production, employment generation and poverty alleviation.

KEYWORDS: Indian economy, Agro based industries, sugar industry, edible oil