Abstract: Agriculture and development is inter connect. Industries can’t operate without agricultural activity and single economy can’t be developed without industries. Agriculture assumes backbone of every economy. Many of industries get raw material from primary sector which related to agriculture sector. Agro-processing industries can play a significant role in rural based economy like India. Many of developing countries have boosted their economy through agro based industries like Ghana and Argentina. India is an agrarian economy and agro based industries be a major part in economy especially in Rajasthan, although this sector has much potential for rural economy but ground report is different because villages and their residential could not benefited from these industries. In this research paper fully discussed on the contribution of agro based industries in the development of rural economy special focus on northern Rajasthan especially Bikaner zone which include Sri Ganganagar, Hanumangarh, Churu, and Bikaner.The research is based on both analytical interpretation and statistical evidence derived from survey data collected from agro-processing units, farmers, labors and academicians in the Bikaner zone. The findings suggest that although agro-processing industries are closely related to rural economy but their benefits are not adequately transmitted to rural communities because most agro-processing units are operate in urban and semi urban region.

The study concludes that agro-processing industries in the Bikaner zone contribute to economic activity but their impact on rural development remains limited due to infrastructural constraints, limited farmer participation, dominance of intermediaries and inadequate policy implementation

Keywords: Agro processing industries, rural development, Bikaner zone, local and abroad, agronomy, farmers, labors, academicians, entrepreneurs, rural economy, Rajasthan economy, Indian food processing market, value addition.