The key concept is how we "create value", through agriculture or any other economic activity. Industrialization of raw materials was the standard form of creating value in the past. Take value creation as the equivalent to wealth creation.

Today there are many ways of creating value, being "transformation" of raw materials one of them. But, there are others, such as farming "specialties" for high income markets, or producing agroceutics or bio fuels.

In order to create value in the knowledge economy, a nation needs a well educated and trained working class, with a sound and reasonable institutional environment and  the protection of property rights. No high tech company would invest important sums of money in a country where the intellectual property rights are not enforced.

The most important issue is to learn in which stage of agricultural development we are focusing the analysis. In order to avoid people migrating to cities or urban areas, governments should offer better living conditions to farmers, which include basic public utilities or services, such as education, electricity, basic road infrastructure, health care and in the present access to the internet.

If industrializing agricultural products is the first option, then research should be conducted to indicate what kind of products will be transformed and what is the final market. Will it be a domestic or an international market?

International markets require high food safety standards, not easily achieved by some countries, e.g. agrochemicals residues, best agricultural and manufacturing practices or social/environmental stds. (child or slave labour, greenhouse gases emission).

So, as you may see it's quite a complex question.

The first question should be: what are the resources we have and what are the possibilities we face. Factor endowment analysis would be the first action in a series or sequence of activities.

In a broader sense, you cannot industrialize raw materials if you don't have energy, infrastructure, entrepreneurs, capital, technology, skilled workers, and of course agricultural products.

Hope this helps.

In the US anyway there is increasing backlash against industrializing agriculture. So at least here if you wanted to industrialize agriculture further (which I would argue against for several reasons, but that is not relevant to your question) I think the major factor that could pave the way is to help conduct the cultural change needed for individual to accept industrialized agriculture.

In Hawai‘i where I am from there is a reverse to the trend...we have had the first increase in farms and farmers in a long time, and seeing a huge return to the land.  I think that this will be an important trend in the future, because of the recognition that there are a huge amount of alternative values generated from agriculture, including both tangible ecosystem services as well as intangible values such as education, culture, etc. I think India is where the US was development wise a few decades ago, and so is still in the mindset of wanting to industrialize everything, but I would think that it will follow the same path as eventually leading to a pushback against industrialization of food. 

The key concept is how we "create value", through agriculture or any other economic activity. Industrialization of raw materials was the standard form of creating value in the past. Take value creation as the equivalent to wealth creation.

Today there are many ways of creating value, being "transformation" of raw materials one of them. But, there are others, such as farming "specialties" for high income markets, or producing agroceutics or bio fuels.

In order to create value in the knowledge economy, a nation needs a well educated and trained working class, with a sound and reasonable institutional environment and  the protection of property rights. No high tech company would invest important sums of money in a country where the intellectual property rights are not enforced.

The most important issue is to learn in which stage of agricultural development we are focusing the analysis. In order to avoid people migrating to cities or urban areas, governments should offer better living conditions to farmers, which include basic public utilities or services, such as education, electricity, basic road infrastructure, health care and in the present access to the internet.

If industrializing agricultural products is the first option, then research should be conducted to indicate what kind of products will be transformed and what is the final market. Will it be a domestic or an international market?

International markets require high food safety standards, not easily achieved by some countries, e.g. agrochemicals residues, best agricultural and manufacturing practices or social/environmental stds. (child or slave labour, greenhouse gases emission).

So, as you may see it's quite a complex question.

The first question should be: what are the resources we have and what are the possibilities we face. Factor endowment analysis would be the first action in a series or sequence of activities.

In a broader sense, you cannot industrialize raw materials if you don't have energy, infrastructure, entrepreneurs, capital, technology, skilled workers, and of course agricultural products.

Hope this helps.

What do you mean with industrializing agrigulture? Just that some farmers leave the sector? Then I would refer you to the Pareto law. According to this rule, (in many regions) the largest 20 to 30 percent of farms produce 70 to 80 percent of the output. If in such a situation the smallest 20 percent of farms exit the sector, this does not really affect production. The reason is that these farms have a very small share in total production capacities. Even if the other farms take over their market shares this has little impact on their production and thus they are hardly becoming more industrialized. If, however, you want to address with your question specific social issues of structural change, then I find the term "industrialization of agriculture" misleading.

Industrialization of agriculture can assume many forms and some of them could be beneficial to Indian agriculture. For example, currently the production of crops is undertaken with low level of mechanization particularly in the dryland farming regions. Industrialization in the form of water saving irrigation technologies such as the ones in Isreal will have positive impact on the environment. Currently the production of milk is done in a small scale manner. Organized production of milk through stall feeding rather than roaming cows will bring some element of industrialization. Industrialization also needed badly in the processing sector where the quality for products is more important. This will further drive the need for higher food safety standards. Japan had industrialized agriculture much before mechanization was possible.  Precision agriculture is badly needed and that could be a good entry point for industrialization of agriculture. 

To me, industrialialization of agriculture in its real sense, is not acceptable, in view of the emerging concerns that we already face the world over from the kind agriculture got promoted under the green revolution era. To a greater extent, this agriculture was industrialized in the developed, if not the developing world. What we could probably think of 'further industrializing this agriculture' is in terms of making it less hazardous in terms of application of critical inputs, like water, agro-chemicals and labour to a greater extent.. As many countries are facing labour as a major constraint as already stated above, and farming getting more and more feminized in many contexts, what we need is more innovative technologies/ practices that reduces the burden of labourers, esp. women.. Attracting the rural youth is a major challenge, where we may try with introducing the processing technologies of the kind noted by Suresh Chandra Babu.. To me, more needs to be done in the supply chain, so that the farmer gets duly rewarded for his (her) efforts. In India, we still see the super malls/ retail outlets selling the farm produce at huge prices (where farmer gets about 20-25% or even less of the retail prices).. the options suggested by Suresh Chandra Babu are welcome in the Indian context, but, it is important to see if the water saved by the sprinkler/ drip irrigation systems really help save the water for ecosystem functions?