Economic status of agro-based industries in India and Gujarat

Abstract:

Agro-based industries play a crucial role in solidification of the linkage between agriculture and industrial development which contributes significantly to economic growth, employment generation and value addition. This study examines the economic status, average performance and growth dynamics of Agro-based industries in India and Gujarat over the study period from 2012–13 to 2022–23 by using the time series data from the Annual Survey of Industries. The industries were classified according to NIC (2008) codes and the compound annual growth rates of different indicators viz. number of factories in operation, employment, net income, net profit, gross value added and total output were estimated by using an exponential function. The results highlight a dual pattern in which the food processing and beverage industries emerge as the dominant industry at national level while Gujarat demonstrates a region-specific industrial specialization, with textile industries leading in factories in operation, employment and income generation. Gujarat accounts a notable share in India’s Agro-based industries, particularly in total output (13.8%), gross value added (11.8%) and net income (11.1%). Agro-based industries in both India and Gujarat experienced significant positive growth in net income, net profit, gross value added and total output while tobacco industries recorded negative growth in factories in operation and employment. Despite the strong economic contributions, the low and negative growth of factories in operation and employment in major industries raises concerns and suggests region specific policy interventions for its future enhancement and inclusive growth.