Agro-based industry would mean any activity involved in cultivation, under controlled conditions of agricultural and horticultural crops, including floriculture and cultivation of vegetables and post-harvest operation on all fruits and vegetables. The development of agro-industries has assumed crucial importance in the economic planning and progress of the country. This paper highlights the development proposals of agro-based industries during the tenth five year plan. This study also points out that Andhra Pradesh occupied the first place with 10,183 processed food industry units and the least place was occupied by Meghalaya with only 3 units in the year 2002-03.

However, there are extreme variations among different states in the number of processed food industries.It is also evident from this study that except potatoes, all the other perishable products have been showing inadequate number of cold storage plants and low capacity utilization of the existing units. This study suggests that there is a need to develop the processed food industries throughout the country in order to provide more employment opportunities and to reduce the regional imbalances.