A STUDY ON THE SHARE OF AGRICULTURE TO TOTAL INTERNATIONAL TRADE OF INDIA

DR.Kanaiyalal D.Dave, Associate professor, Smt.V.P.Kapadia Mahila Arts College-Bhavnagar.

 

 

 

Abstract

Agriculture sector is the important productive sector of any developing or less developed economies. In these countries agriculture sector is the key sector that contributes to international trade. International trade is play vital role in economic development. Reference to India, contribution in world trade was very lower still 1991. After the new economic policy of 1991, International trade of India has been increasing. Along with, the share of agriculture to the international trade of India has been changing. During the period 2000-01 to 2013-14, except the year 2009-10, India’s total international trade increased at annual average 20.54 percent. During the period 2000-01 to 2013-14, Share of agriculture has been 7.597 percent in total international trade of India. During this period, average annual exports of agriculture were more than average annual imports of agriculture. We should increase agriculture exports for achieving new EXIM policy’s target.

 

Keywords

Agriculture sector, Exports, Imports, International Trade

 

Introduction

Agriculture sector is the important productive sector of any developing or less developed economies. In these countries agriculture sector is the key sector that contributes to international trade. If agriculture sector develops, then, the GDP, standard of living and employment of these economies can be improved.

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Importance of the Study

International trade is very crucial to the rapid economic development of any country. In the case of India, during the year 2013 the share of imports was 3.1 percent and share of exports was 2.1 percent in world trade. The new export import policy of 2015 the target of India is 3.5 percent (India’s contribution in the world trade) during 2020. To achieve this target the contribution of agriculture exports should be increased. In this study, an attempt is made to examine the contribution of agriculture exports imports in India’s international trade and suggestions are made to agriculture exports.

 

Objectives of Study

The following are the objectives of the present study.

(1)      To examine the share of agriculture to the total international trade of India.

(2)      To examine the share of agriculture to the total Imports of India.

(3)      To examine the share of agriculture to the total Exports of India.

 

Data collection

This study is based on secondary data. Necessary data for this study were collected from the newspapers, magazines, books, Directorate General of Commercial intelligence & Statistic etc.

 

Research Method

To get results and findings from the collected wide data, different methods of statistics have been used in the study. Size of international trade was measured in Indian rupees.

 

Share of agriculture to total International Trade of India.

International trade is play vital role in economic development. Reference to India, contribution in world trade was very lower still 1991. After the new economic policy of 1991, International trade of India has been increasing. Along with, the share of agriculture to the international trade of India has been changing. Table number -1 provides contribution of agriculture to total international trade of India since 2000-01 to the year 2013-14.

 

Table Number: 1 Share of Agriculture to total international trade of India.

(Value in Rs. Crore)

Years

Total International Trade of  India

% Annual change

Total Exports imports Of Agriculture in India

% Annual change

%  share of Agriculture in Total International Trade of India

2000-01

429663.09

-

40743.6

-

9.482685608

2001-02

454217.69

5.71484974

45985.22

12.86489166

10.124

2002-03

552343.15

21.6031789

52262.77

13.65123403

9.46201107

2003-04

652474.41

18.1284515

58388.16

11.72036997

8.948727966

2004-05

876404.07

34.3200678

64414.49

10.32115073

7.349862033

2005-06

1116826.76

27.4328587

70716.18

9.783031737

6.331884454

2006-07

1412285.59

26.4552069

92049.27

30.16719795

6.517751838

2007-08

1668175.22

18.1188303

108945.75

18.35590874

6.530833733

2008-09

2215190.61

32.791243

122734.71

12.65672135

5.54

2009-10

2209269.19

-0.2673097

148869.87

21.29402514

6.738421496

2010-11

2826388.88

27.9332049

174817.93

17.43002798

6.185204422

2011-12

3811422.63

34.8513171

270428.48

54.69150104

7.09521106

2012-13

4303480.8

12.9100921

341651.79

26.33720753

7.938963966

2013-14(p)

4608363.45

7.08455932

373618.05

9.356385927

8.107391139

Source: Director General of Commercial Intelligence & Statistics, Ministry of Commerce, Kolkata. Agricultural

                Statistics at a glance 2014.  (Note: (p)    indicate provisional data)

It is clear from table number -1 that the during the period 2000-01 to 2013-14 except the year of 2009-10, trends of international trade of India has been increasing. During this period, In India, highest annual growth rate in international trade was 34.85 percent in the year 2011-12 and lowest annual growth rate was -0.267 percent in the year 2009-10. During this period, In India, average annual growth rate of international trade was 20.54 percent.

During the period 2000-01 to 2013-14, highest share of agriculture to total international trade of India was 10.124 percent in the year 2001-02 and lowest was 5.54 percent in the year 2008-09. During the above period, average annual share of agriculture to total international trade of India was 7.597 percent. Thus, share of agriculture has less in international trade of India compared to its share of India’s GDP, employment etc.  

 

Share of agriculture to total exports and imports of India.                                             

Agriculture sector play important role in Indian economy. However, due to some reasons, agriculture development has less in India compared to development of industries and services. So as discussed ahead, contribution of agriculture is less in international trade of India. Such as in the year 1991, share of agriculture imports was 2.79 percent in the total imports of India and share of agriculture exports was 18.49 percent in the total exports of India. It was 4.11 percent and 14.20 percent respectively in 2012-13. Table number -2 provides contribution of agriculture in the total exports and imports of India in detail.

 

Table Number: 2 Share of Agriculture Imports Exports to total Imports Exports of India.

(Value in Rs Crore)

Year

Agriculture Imports

Total Imports of India

% of Agriculture Import to Total Imports of India

Agriculture Exports

Total Exports of India

% of Agriculture Export to Total Exports of India

2000-01

12086.23

228306.64

5.29

28657.37

201356.45

14.23

2001-02

16256.61

245199.72

6.63

29728.61

209017.97

14.22

2002-03

17608.83

297205.87

5.92

34653.94

255137.28

13.58

2003-04

21972.68

359107.66

6.12

36415.48

293366.75

12.41

2004-05

22811.84

501064.54

4.55

41602.65

375339.53

11.08

2005-06

21499.22

660408.9

3.26

49216.96

456417.86

10.78

2006-07

29637.85

840506.31

3.53

62411.42

571779.28

10.92

2007-08

29906.23

1012311.7

2.95

79039.52

655863.52

12.05

2008-09

37183.04

1374435.55

2.71

85551.67

840755.06

10.18

2009-10

59528.37

1363735.55

4.37

89341.5

845533.64

10.57

2010-11

57334.32

1683466.96

3.41

117483.61

1142921.92

10.28

2011-12

82819.15

2345463.24

3.53

187609.33

1465959.39

12.80

2012-13

109610.7

2669161.96

4.11

232041.11

1634318.84

14.20

2013-14(p)

105149

2714181.5

3.87

268469.05

1894181.95

14.17

Source: Director General of Commercial Intelligence & Statistics, Ministry of Commerce, Kolkata. Agricultural statistics at a glance 2014.   (Note:       p    indicate provisional data)

It is clear from table number – 2 that during the period 2000-01 to 2013-14, highest contribution of agriculture imports was 6.63 percent in the year 2001-02 to total imports of India and it was lowest 2.71 percent in the year 2008-09. In this period, average annual share of agriculture imports was 4.3 percent to total imports of India. In the above period, average annual growth rate of total imports of India was 21.67 percent and same period, average annual growth rate of agriculture imports of India was 19.839 percent. Thus, the average annual growth rate of agriculture imports have less compared to average annual growth rate of imports of India.

It is also clear from table number – 2 that during the period 2000-01 to 2013-14, highest contribution of agriculture exports was 14.23 percent in the year 2000-01 to total exports of India and it was lowest 10.18 percent in the year 2008-09. In this period, average annual share of agriculture exports was 12.248 percent to total exports of India. In the above period, average annual growth rate of total exports of India was 19.228 percent and same period average annual growth rate of agriculture exports of India was 19.587 percent. Thus the share of agriculture exports has been less in the total exports of India and average annual growth rate of agriculture exports has been more compared to average annual growth rate of total exports of India during period 2000-01 to 2013-14.  

 

Findings

In the year 1981, India’s total international trade was 12 percent of GDP; it increased to 41.9 percent in 2013.

During the period 2000-01 to 2013-14, except the year 2009-10, India’s total international trade increased at average annual 20.54 percent.

During the period 2000-01 to 2013-14, Share of agriculture has been 7.597 percent in total international trade of India.

During this period, average annual share of agriculture has been 4.3 percent in total imports of India and average annual share of exports has been 12.248 percent in total exports of India.

During this period, total imports of India was increased at average annual 21.67 percent and agriculture imports was increased at average annual 19.839 percent.

During this period, India’s total exports was increased at average annual 19.228 percent and agriculture exports was increased at average annual 19.587 percent.

During the period 2000-01 to 2013-14, average annual exports of agriculture were more than average annual imports of agriculture.

 

Some Suggestions of increasing Agriculture Exports

The following are the suggestions made to increase agriculture exports in India.

1)        The agriculture production cost should be reduced.

2)        As per exporter, expectation should be changed in EXIM policy in India.

3)        Agriculture production should be increased in our country.

4)        Grading should be mandatory for the Agriculture goods at local level.

5)        To rise quality of agriculture production by various agricultural research.

6)        The storage capacity of agriculture production should be increased.

7)         Timely delivery of agricultural goods should be made.

8)        Agriculture education should be made compulsory to the farmer. 

9)        To implement PPP model in agriculture sector to increase investment.  

 

Limitations of Study

This study is based on the secondary data. Some errors of secondary data can effect on the result.

 

Conclusion

International trade is playing important role in economic development but due to some reasons India’s contribution has been less in world trade. After new Economic policy, India’s contribution is increased in total world trade. In India, Agriculture share has been less to total international trade of India. We should increase agricultural exports for achieving new EXIM policy’s target.   

 

References

1)        Shastri,R.V. and Desai, S.A.(1984-85). “Principles of Agriculture Economics” popular prakashan, Surat.

2)        Patel,R.C. and  et al(1989-90). International Economics, popular prakashan, Surat.

3)        Economic Survey (2013-14), Government of India Ministry of Finance Economic Division, Oxford university Press, New Delhi.

4)       Agri. Statistics at a Glance 2014, Gov.of India, Ministry of Agri., Dept. of Agri. and Cooperation Directorate of Eco. and Statistics.

 

 

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