India's Export of Fruits and Vegetables and the Role of Banks: An Economic Analysis

Agriculture is the largest single sector of the Indian Economy. In 1999-2000, it contributed nearly 29 percent of India's gross domestic product (GDP) at factor cost. About 61 percent of the country's population derives its sustenance from this sector. No strategy of India's development can succeed without according a high priority to agricultural development. Within the agricultural sector, the agro and food-processing sub-sector holds high potential as an engine of growth for the sector, as well as for the entire economy. The sub-sector ranks fifth in terms of its contribution to India's GDP and employs about 18 percent of the country's industrial labour force. A forward-looking strategy for promoting the export of processed agricultural commodities should be an important element of any pragmatic strategy of agricultural development in India.