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Liberalization and Agricultural Exports of India: A Paradigm Shift towards Non-Traditional Commodities

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  • Shah, Deepak

Abstract

The major issues discussed in this study revolve around export potential of India in non-traditional agricultural commodities in relation to traditional ones and domestic demand and supply aspects of various commodities with special emphasis on non-traditional ones in particular and traditional ones in general with a view to evaluate India’s export trade in these commodities in the near future and direction of trade. The study shows that the agricultural exports of India have always been fraught with high fluctuations. In spite of significant production expansions in many agricultural commodities, India’s global agricultural trade has remained at lower ebb. A lack of vision and a directionless agricultural export planning on the part of our policy planners seem to be responsible for this not so-encouraging scenario. However, it is to be further noted that though India’s share for most of the selected commodities in the total Asian and world exports encompassing them fluctuated during the past two decades, a fillip received to their exports in the wake of liberalization of policies also meant encouraging trends. Notwithstanding the dwindling India’s share of world agricultural exports, it is hoped that a regime of liberal trade policy measures will propel this country’s international market share in these commodities in future, in general. And, adoption of such international trade friendly measures is likely to benefit India’s horticultural exports, in particular. Further, though the study shows horticultural exports of India to forge ahead even in the face of wide international price fluctuations and high burgeoning demand for these high value commodities, the development of horticultural products in the country still suffers from several constraints, which are not only general but also crop specific in nature. In brief, it deserves mention that the country’s strength lies in its rich bio-diversity, diversity in agro-climatic conditions, a large labour force, the low use of agro-chemical. All this can provide a boost to the export trade of India in agricultural products.

Suggested Citation

  • Shah, Deepak, 2012. "Liberalization and Agricultural Exports of India: A Paradigm Shift towards Non-Traditional Commodities," MPRA Paper 56575, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:56575
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    Keywords

    Liberalization Agricultural Exports India;

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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