India is the world's main incense producing country, and is also a major exporter to other countries. In India, incense sticks are called Agarbatti (Agar: from Dravidian probably Tamil அகில், அகிர், Sanskrit varti, meaning "stick". An older term "Dhūpavarti" is more commonly used in ancient and medieval texts which encompasses various types of stick incense recipes. Incense is part of the cottage industry in India and important part of many religions in the region since ancient times. The method of incense making with a bamboo stick as a core originated in India at the end of the 19th century, largely replacing the rolled, extruded or shaped method which is still used in India for dhoop.

Commiphora wightii, with common names Indian bdellium-tree, gugal, guggal, guggul, gugul, or mukul myrrh tree, is a flowering plant in the family Burseraceae, which produces a fragrant resin called gugal, guggul or gugul, that is used in incense and vedic medicine. The species is native to southern Pakistan and western India. It prefers arid and semi-arid climates and is tolerant of poor soil.