The Indian Sugar Mills Association (ISMA) said it wants to bust myths about sugar and its health effects.
On average, Indians eat around 19kg a year, which is well below the global average.
Still, the country is the world’s biggest consumer of the sweetener overall.
India’s production is expected to rise by 13% this year to 31m tonnes but the government has indicated that it might stop export subsidies aimed at clearing surpluses.
ISMA's new website features short articles with titles such as “Eat, Drink & Be Healthy: A little sugar not all that bad”.
The online campaign also includes social media posts and workshops, where celebrity chefs and health coaches discuss healthy living.
It features recipes for sweets, and takes aim at artificial sweeteners, suggesting they don't help people lose weight and can have health consequences.
At the launch of the website, India’s food secretary Sudhanshu Pandey told local media that sugar’s reputation is not deserved.
“There are a lot of myths going around about sugar and sugar consumption without scientific basis,” he said.