Indian Journal of Economics and Development

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Impact of Trade Liberalization on Indian Agri-Export


Affiliations
1 Dept of Economics, Shri Mata Vaishno Devi University, Kakryal, Katra, J&K, Pin-182320, India
 

Background/objectives: The agricultural sector has been playing a key role in the composition of Indian exports. Unfortunately the share of Indian agricultural exports has been slowly declining in recent years. The changing scenario of Global agricultural trade in the post liberalization era is as much challenging for India as for any other developing nation trying to put its feet firmly in the fast emerging economic scenario, post liberalization. India, thus could not gain much from trade liberalization even though the increasing economic integration of the Indian economy with global processes, has brought larger scope at the door of its agricultural sector. With this background, the present paper tries to study the scenario of Agricultural-Export in India under the post liberalization era focusing mainly on its growth and terms of trade.

Methods/Statistical analysis: Kinked Exponential models that impose linear restrictions, so as to eliminate discontinuity between sub-periods, provide a superior basis for comparisons of sub-periods growth rates, are used in the present study. Terms of trade is calculated considering the value of a country's exports relative to that of its imports.

Findings: The main findings of the study is that the exponential export growth rate, calculated from the kinked exponential model, was 13.8% per annum during the pre liberalized period and slightly decreased to 12.3% during post liberalized era. The terms of trade were quite favourable during the period of study.

Improvements/Applications: With the favourable terms of trade and increased agricultural production to enhance the agri export India needs to emphasis on more supply of agricultural products, diversification of agricultural produce and exports, quality improvement, improvement of the infrastructure for the highly perishable agricultural products, timely delivery of goods etc. and above all govt initiation to a greater extent.


Keywords

Agri-Export, Liberalization, Kinked Model, Terms of Trade, Growth.
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  • Impact of Trade Liberalization on Indian Agri-Export

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Authors

Kakali Majumdar
Dept of Economics, Shri Mata Vaishno Devi University, Kakryal, Katra, J&K, Pin-182320, India

Abstract


Background/objectives: The agricultural sector has been playing a key role in the composition of Indian exports. Unfortunately the share of Indian agricultural exports has been slowly declining in recent years. The changing scenario of Global agricultural trade in the post liberalization era is as much challenging for India as for any other developing nation trying to put its feet firmly in the fast emerging economic scenario, post liberalization. India, thus could not gain much from trade liberalization even though the increasing economic integration of the Indian economy with global processes, has brought larger scope at the door of its agricultural sector. With this background, the present paper tries to study the scenario of Agricultural-Export in India under the post liberalization era focusing mainly on its growth and terms of trade.

Methods/Statistical analysis: Kinked Exponential models that impose linear restrictions, so as to eliminate discontinuity between sub-periods, provide a superior basis for comparisons of sub-periods growth rates, are used in the present study. Terms of trade is calculated considering the value of a country's exports relative to that of its imports.

Findings: The main findings of the study is that the exponential export growth rate, calculated from the kinked exponential model, was 13.8% per annum during the pre liberalized period and slightly decreased to 12.3% during post liberalized era. The terms of trade were quite favourable during the period of study.

Improvements/Applications: With the favourable terms of trade and increased agricultural production to enhance the agri export India needs to emphasis on more supply of agricultural products, diversification of agricultural produce and exports, quality improvement, improvement of the infrastructure for the highly perishable agricultural products, timely delivery of goods etc. and above all govt initiation to a greater extent.


Keywords


Agri-Export, Liberalization, Kinked Model, Terms of Trade, Growth.

References