In India, the farming sector contributes 52% in GDP (2010-2011) and today its contribution is 18% in GDP (2017-2018), agro-based- industries depends on the farming sector, but now farmers are facing a lot of problems which leads to declining of agriculture. Declining agriculture sector directly impacts on production of agro-based industries. And they are unable to meet the market demand which leads to import more goods and which impact the GDP growth of India. In this research, we are going to study the problems faced by farmers and the impact on agro-based industries. Through this research, we are also able to identify the gap between government schemes offered and actual benefit received to the farmers and its impact on the farming sector. KEYWORDS: Farming sector, agriculture based industries, impact on economy, and contribution of farming sector in GDP.