ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Is India’s Agricultural Export Policy Ambiguous?

The agricultural export policy was announced in 2018 to transform the ecosystem of India’s agricultural exports. However, the country’s agricultural exports have faced several policy-induced restrictions. This article explores the ambiguities in the policy by citing empirical data on trade policy instruments used for export restrictions.

India is one of the largest agricultural producers in the world, and its agricultural exports are an important part of its economy. India exports a wide variety of agricultural products, including grains, fruits, vegetables, spices, tea, coffee, and cotton. India has significant potential for agricultural exports due to its diverse agroclimatic conditions, large land area used with intensive agricultural cultivation, and skilled farming population (Ohlan 2013). Agriculture is still a crucial source of livelihood for a significant portion of the Indian population. As per the latest available data from the annual report, 2020–21 of the Ministry of Agriculture and Farmers’ Welfare, Government of India, agriculture and allied sectors employ around 55% of the country’s workforce, directly or indirectly. The sectoral contribution of agriculture to India’s gross domestic product (GDP) is 20.2% in 2020–21 and it also remains a significant contributor to foreign exchange earnings with over $56 billion of exports in 2021. India is constantly improving its market share (Figure 1, p 27) and policymakers intend to use agricultural exports to speed up economic development, generate employment, eliminate food losses and waste, and most importantly, increase dwindling farmers’ income (Johnston and Mellor 1961).

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Updated On : 23rd Jan, 2024
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