3. INTRODUCTION
DEFINITION
Agricultural trade involves the exchange of agricultural
goods and services between nations, encompassing the
export and import of crops, livestock, and related
products. It plays a pivotal role in a country's economic
development, contributing significantly to its GDP and
ensuring food security.
4. INTRODUCTION
SIGNIFICANCE
India's agricultural sector is a crucial component of its
economy, providing livelihoods for a significant
population. The country's participation in
international agricultural trade influences economic
growth, employment, and overall development.
Examining the changes in India's agricultural trade
over the past three decades is essential for
understanding the dynamics that have shaped its
current position.
5. INTRODUCTION
PURPOSE OF PRESENTATION
The presentation aims to provide a
comprehensive analysis of India's
agricultural trade, tracking its evolution
since the 1990s. By exploring the shifts in
trade patterns, identifying key partners, and
scrutinizing the composition of exports and
imports, we will gain insights into the
driving forces behind these changes.
6. 1990s
2000s
2020s
HISTORICAL OVERVIEW
The 1990s marked a period of economic liberalization in
India, impacting its agricultural trade dynamics. During this
era, the country navigated through changes in global
economic policies and witnessed the emergence of new
trading partners.
1.Key Players and Partnerships: India forged
alliances with diverse nations, diversifying its trade
relationships.
2.Major Agricultural Exports and Imports: The
1990s saw shifts in the types of agricultural products
traded, reflecting global demand and supply patterns.
The 2000s witnessed technological advancements,
globalization, and a growing awareness of sustainable
agriculture, all influencing India's agricultural trade.
1.Shifting Global Dynamics: Evolving global economic
conditions impacted the demand for Indian
agricultural products.
2.Technological Advancements: The adoption of
modern farming practices and technologies influenced
the efficiency and competitiveness of India's
agricultural exports
Changes and Trends in the 2000s
Agricultural Trade in the 1990s
The 2020s present a snapshot of India's current agricultural
trade landscape, showcasing recent developments,
challenges, and opportunities.
1.Recent Developments in Agricultural Trade: Ongoing
trends and policy changes that have shaped the
contemporary scenario.
2.Emerging Challenges and Opportunities: A glimpse into
the current obstacles and potential avenues for growth in
India's agricultural trade.
Current Scenario in the 2020s
7. DIRECTION OF INDIA'S AGRICULTURAL TRADE
Geographic Shifts in Trading Partners
Traditional trading partners, such as the United States and
European Union, have been joined by new alliances with
Asian economies. Regional and bilateral agreements, like
the ASEAN-India Free Trade Agreement, have reshaped
India's trade landscape.
1. Traditional Partners vs. New Alliances - While the United
States and the European Union remained crucial, India
strategically expanded trade ties with ASEAN countries,
experiencing a 25% surge in bilateral trade.
2. Regional and Bilateral Agreements - The ASEAN-India
Free Trade Agreement played a pivotal role, resulting in a
20% increase in agricultural exports to Southeast Asian
nations.
Analysis of Export and Import Markets
India's primary export destinations include the Middle East,
Southeast Asia, and Africa. Major sources of agricultural
imports involve countries supplying essential commodities
like edible oils, pulses, and fertilizers.
1. Primary Export Destinations - The Middle East,
accounting for 30% of India's agricultural exports,
remained a key region. Southeast Asia (25%) and Africa
(20%) were also significant markets.
2. Major Sources of Agricultural Imports - Edible oil
imports rose by 15%, meeting 60% of India's domestic
demand, while pulses constituted 25% of total agricultural
imports.
A B
8. Agri-Exports
Marine
Products
21%
Rice (other
than
basmati)
17%
Sugar
12%
Spices
11%
Basmati
Rice
10%
Buffalo meat
9%
Cotton Raw
8%
Wheat
6%
Castor oil
3%
Misc
Prossessed
items
3%
Export Share 2020-21 (Top 10 items)
Agri-Imports
Vegetable Oil
64%
fresh fruits
8%
Pulses
8%
Spices
4%
Cashew
4%
Natural
Rubber
4%
Alchohol
2%
Oil
Meals
2%
Other Oil
seedss
2%
Cotton raw
2%
Import Share 2020-21 (top 10 items)
Destinations
Major destinations of exports for India’s Agri and
Allied commodities were Bangladesh, United States
of America, China, Vietnam, United Arab Emirates,
Indonesia, Saudi Arabia, Malaysia, Nepal, Egypt, Sri
Lanka, Netherlands, Iran, Iraq, United Kingdom,
Japan and Thailand.
Sources
Major sources of import of India’s Agri and Allied
commodities are Indonesia, Malaysia, Argentina,
Ukraine, United States of America, Brazil, Nepal,
Thailand, Myanmar, Singapore, Afghanistan,
Tanzania, Vietnam, United Arab Emirates,
Bangladesh, China, Canada, Netherlands, Sri
Lanka and Australia.
250743
273852
252400
310130
374611
0
50000
100000
150000
200000
250000
300000
350000
400000
2017-18 2018-19 2019-20 2020-21 2021-22
Export Figure of agri sector (last 5 years)
157316
142962
152134
158863
239189
0
50000
100000
150000
200000
250000
300000
2017-18 2018-19 2019-20 2020-21 2021-22
Import Figure of agri sector (last 5 years)
9. REASONS FOR SHIFTS IN INDIA'S AGRICULTURAL TRADE
Liberalization and Policy Changes
The 1990s marked a significant
turning point for India's economy as it
embraced liberalization and opened
up its markets. The dismantling of
trade barriers and reduction of export
subsidies were instrumental in
altering the composition of
agricultural trade. The shift from a
protectionist approach to a more
market-oriented one facilitated
increased exports and imports. The
government's strategic decisions to
align with global trade norms and
reduce bureaucratic hurdles played a
pivotal role in reshaping India's
agricultural trade dynamics.
For instance, agricultural exports
surged from $5 billion in 1990 to $15
billion in 1999, reflecting a threefold
increase. Importantly, this growth was
not only in traditional commodities
but also in emerging agricultural
products and technologies.
Technological Advancements
The adoption of modern agricultural
practices and technologies has been a
key driver of change in India's
agricultural trade. The Green Revolution
of the 1960s and 1970s laid the
groundwork for increased productivity,
but subsequent decades witnessed a
more nuanced integration of technology.
Genetically modified crops, precision
farming techniques, and innovations in
agricultural machinery have played a
crucial role in boosting yields and
enhancing the quality of agricultural
products.
The adoption of precision farming
technologies led to a 20% increase in
overall agricultural productivity.
Genetically modified crops, designed for
pest resistance and higher yields,
contributed to a 30% reduction in post-
harvest losses. These technological
advancements not only influenced the
volume of agricultural trade but also
positioned India as a provider of high-
quality, technologically advanced
agricultural products.
Global Economic & Environmental
Factors
The agricultural trade landscape is
intricately linked to global economic
trends and environmental conditions.
Fluctuations in global commodity prices,
currency exchange rates, and economic
downturns have influenced the
competitiveness of Indian agricultural
products in the global market.
Additionally, environmental factors,
including climate change and
sustainability concerns, have introduced
a layer of complexity to India's
agricultural trade.
For instance, during the global economic
downturn in 2020, India experienced a
10% decrease in agricultural export
revenue, highlighting the vulnerability of
the sector to external economic shocks.
On the environmental front, the
increased focus on sustainability
resulted in a 25% growth in exports of
certified organic products, reflecting
changing consumer preferences globally.
Changing Consumer Preferences and
Emerging Markets
The evolving preferences of consumers
worldwide have played a crucial role in
shaping India's agricultural trade. As
global consumers become more health-
conscious and environmentally aware,
there has been a shift towards organic
and sustainably produced agricultural
products. India, with its rich biodiversity
and traditional farming practices, has
tapped into this trend to position itself
as a supplier of premium, eco-friendly
agricultural goods.
For example, the export of organic
agricultural products witnessed a 25%
annual increase, indicating a strategic
alignment with global consumer trends.
Additionally, the diversification of
exports to include value-added
products, such as processed foods, has
contributed to a 15% increase in export
revenue.
10. REASONS FOR SHIFTS IN INDIA'S AGRICULTURAL TRADE
Liberalization and
Policy Changes
The 1990s marked a significant
turning point for India's economy as it
embraced liberalization and opened
up its markets. The dismantling of
trade barriers and reduction of export
subsidies were instrumental in
altering the composition of
agricultural trade. The shift from a
protectionist approach to a more
market-oriented one facilitated
increased exports and imports. The
government's strategic decisions to
align with global trade norms and
reduce bureaucratic hurdles played a
pivotal role in reshaping India's
agricultural trade dynamics.
For instance, agricultural exports
surged from $5 billion in 1990 to $15
billion in 1999, reflecting a threefold
increase. Importantly, this growth was
not only in traditional commodities
but also in emerging agricultural
products and technologies.
Technological Advancements
The adoption of modern agricultural
practices and technologies has been a
key driver of change in India's
agricultural trade. The Green Revolution
of the 1960s and 1970s laid the
groundwork for increased productivity,
but subsequent decades witnessed a
more nuanced integration of technology.
Genetically modified crops, precision
farming techniques, and innovations in
agricultural machinery have played a
crucial role in boosting yields and
enhancing the quality of agricultural
products.
The adoption of precision farming
technologies led to a 20% increase in
overall agricultural productivity.
Genetically modified crops, designed for
pest resistance and higher yields,
contributed to a 30% reduction in post-
harvest losses. These technological
advancements not only influenced the
volume of agricultural trade but also
positioned India as a provider of high-
quality, technologically advanced
agricultural products.
Global Economic & Environmental
Factors
The agricultural trade landscape is
intricately linked to global economic
trends and environmental conditions.
Fluctuations in global commodity prices,
currency exchange rates, and economic
downturns have influenced the
competitiveness of Indian agricultural
products in the global market.
Additionally, environmental factors,
including climate change and
sustainability concerns, have introduced
a layer of complexity to India's
agricultural trade.
For instance, during the global economic
downturn in 2020, India experienced a
10% decrease in agricultural export
revenue, highlighting the vulnerability of
the sector to external economic shocks.
On the environmental front, the
increased focus on sustainability
resulted in a 25% growth in exports of
certified organic products, reflecting
changing consumer preferences globally.
Changing Consumer Preferences and
Emerging Markets
The evolving preferences of consumers
worldwide have played a crucial role in
shaping India's agricultural trade. As
global consumers become more health-
conscious and environmentally aware,
there has been a shift towards organic
and sustainably produced agricultural
products. India, with its rich biodiversity
and traditional farming practices, has
tapped into this trend to position itself
as a supplier of premium, eco-friendly
agricultural goods.
For example, the export of organic
agricultural products witnessed a 25%
annual increase, indicating a strategic
alignment with global consumer trends.
Additionally, the diversification of
exports to include value-added
products, such as processed foods, has
contributed to a 15% increase in export
revenue.
11. REASONS FOR SHIFTS IN INDIA'S AGRICULTURAL TRADE
Liberalization and Policy Changes
The 1990s marked a significant
turning point for India's economy as it
embraced liberalization and opened
up its markets. The dismantling of
trade barriers and reduction of export
subsidies were instrumental in
altering the composition of
agricultural trade. The shift from a
protectionist approach to a more
market-oriented one facilitated
increased exports and imports. The
government's strategic decisions to
align with global trade norms and
reduce bureaucratic hurdles played a
pivotal role in reshaping India's
agricultural trade dynamics.
For instance, agricultural exports
surged from $5 billion in 1990 to $15
billion in 1999, reflecting a threefold
increase. Importantly, this growth was
not only in traditional commodities
but also in emerging agricultural
products and technologies.
Technological
Advancements
The adoption of modern agricultural
practices and technologies has been a
key driver of change in India's
agricultural trade. The Green Revolution
of the 1960s and 1970s laid the
groundwork for increased productivity,
but subsequent decades witnessed a
more nuanced integration of technology.
Genetically modified crops, precision
farming techniques, and innovations in
agricultural machinery have played a
crucial role in boosting yields and
enhancing the quality of agricultural
products.
The adoption of precision farming
technologies led to a 20% increase in
overall agricultural productivity.
Genetically modified crops, designed for
pest resistance and higher yields,
contributed to a 30% reduction in post-
harvest losses. These technological
advancements not only influenced the
volume of agricultural trade but also
positioned India as a provider of high-
quality, technologically advanced
agricultural products.
Global Economic & Environmental
Factors
The agricultural trade landscape is
intricately linked to global economic
trends and environmental conditions.
Fluctuations in global commodity prices,
currency exchange rates, and economic
downturns have influenced the
competitiveness of Indian agricultural
products in the global market.
Additionally, environmental factors,
including climate change and
sustainability concerns, have introduced
a layer of complexity to India's
agricultural trade.
For instance, during the global economic
downturn in 2020, India experienced a
10% decrease in agricultural export
revenue, highlighting the vulnerability of
the sector to external economic shocks.
On the environmental front, the
increased focus on sustainability
resulted in a 25% growth in exports of
certified organic products, reflecting
changing consumer preferences globally.
Changing Consumer Preferences and
Emerging Markets
The evolving preferences of consumers
worldwide have played a crucial role in
shaping India's agricultural trade. As
global consumers become more health-
conscious and environmentally aware,
there has been a shift towards organic
and sustainably produced agricultural
products. India, with its rich biodiversity
and traditional farming practices, has
tapped into this trend to position itself
as a supplier of premium, eco-friendly
agricultural goods.
For example, the export of organic
agricultural products witnessed a 25%
annual increase, indicating a strategic
alignment with global consumer trends.
Additionally, the diversification of
exports to include value-added
products, such as processed foods, has
contributed to a 15% increase in export
revenue.
12. REASONS FOR SHIFTS IN INDIA'S AGRICULTURAL TRADE
Liberalization and Policy Changes
The 1990s marked a significant
turning point for India's economy as it
embraced liberalization and opened
up its markets. The dismantling of
trade barriers and reduction of export
subsidies were instrumental in
altering the composition of
agricultural trade. The shift from a
protectionist approach to a more
market-oriented one facilitated
increased exports and imports. The
government's strategic decisions to
align with global trade norms and
reduce bureaucratic hurdles played a
pivotal role in reshaping India's
agricultural trade dynamics.
For instance, agricultural exports
surged from $5 billion in 1990 to $15
billion in 1999, reflecting a threefold
increase. Importantly, this growth was
not only in traditional commodities
but also in emerging agricultural
products and technologies.
Technological Advancements
The adoption of modern agricultural
practices and technologies has been a
key driver of change in India's
agricultural trade. The Green Revolution
of the 1960s and 1970s laid the
groundwork for increased productivity,
but subsequent decades witnessed a
more nuanced integration of technology.
Genetically modified crops, precision
farming techniques, and innovations in
agricultural machinery have played a
crucial role in boosting yields and
enhancing the quality of agricultural
products.
The adoption of precision farming
technologies led to a 20% increase in
overall agricultural productivity.
Genetically modified crops, designed for
pest resistance and higher yields,
contributed to a 30% reduction in post-
harvest losses. These technological
advancements not only influenced the
volume of agricultural trade but also
positioned India as a provider of high-
quality, technologically advanced
agricultural products.
Global Economic &
Environmental
Factors
The agricultural trade landscape is
intricately linked to global economic
trends and environmental conditions.
Fluctuations in global commodity prices,
currency exchange rates, and economic
downturns have influenced the
competitiveness of Indian agricultural
products in the global market.
Additionally, environmental factors,
including climate change and
sustainability concerns, have introduced
a layer of complexity to India's
agricultural trade.
For instance, during the global economic
downturn in 2020, India experienced a
10% decrease in agricultural export
revenue, highlighting the vulnerability of
the sector to external economic shocks.
On the environmental front, the
increased focus on sustainability
resulted in a 25% growth in exports of
certified organic products, reflecting
changing consumer preferences globally.
Changing Consumer Preferences and
Emerging Markets
The evolving preferences of consumers
worldwide have played a crucial role in
shaping India's agricultural trade. As
global consumers become more health-
conscious and environmentally aware,
there has been a shift towards organic
and sustainably produced agricultural
products. India, with its rich biodiversity
and traditional farming practices, has
tapped into this trend to position itself
as a supplier of premium, eco-friendly
agricultural goods.
For example, the export of organic
agricultural products witnessed a 25%
annual increase, indicating a strategic
alignment with global consumer trends.
Additionally, the diversification of
exports to include value-added
products, such as processed foods, has
contributed to a 15% increase in export
revenue.
13. REASONS FOR SHIFTS IN INDIA'S AGRICULTURAL TRADE
Liberalization and Policy Changes
The 1990s marked a significant
turning point for India's economy as it
embraced liberalization and opened
up its markets. The dismantling of
trade barriers and reduction of export
subsidies were instrumental in
altering the composition of
agricultural trade. The shift from a
protectionist approach to a more
market-oriented one facilitated
increased exports and imports. The
government's strategic decisions to
align with global trade norms and
reduce bureaucratic hurdles played a
pivotal role in reshaping India's
agricultural trade dynamics.
For instance, agricultural exports
surged from $5 billion in 1990 to $15
billion in 1999, reflecting a threefold
increase. Importantly, this growth was
not only in traditional commodities
but also in emerging agricultural
products and technologies.
Technological Advancements
The adoption of modern agricultural
practices and technologies has been a
key driver of change in India's
agricultural trade. The Green Revolution
of the 1960s and 1970s laid the
groundwork for increased productivity,
but subsequent decades witnessed a
more nuanced integration of technology.
Genetically modified crops, precision
farming techniques, and innovations in
agricultural machinery have played a
crucial role in boosting yields and
enhancing the quality of agricultural
products.
The adoption of precision farming
technologies led to a 20% increase in
overall agricultural productivity.
Genetically modified crops, designed for
pest resistance and higher yields,
contributed to a 30% reduction in post-
harvest losses. These technological
advancements not only influenced the
volume of agricultural trade but also
positioned India as a provider of high-
quality, technologically advanced
agricultural products.
Global Economic & Environmental
Factors
The agricultural trade landscape is
intricately linked to global economic
trends and environmental conditions.
Fluctuations in global commodity prices,
currency exchange rates, and economic
downturns have influenced the
competitiveness of Indian agricultural
products in the global market.
Additionally, environmental factors,
including climate change and
sustainability concerns, have introduced
a layer of complexity to India's
agricultural trade.
For instance, during the global economic
downturn in 2020, India experienced a
10% decrease in agricultural export
revenue, highlighting the vulnerability of
the sector to external economic shocks.
On the environmental front, the
increased focus on sustainability
resulted in a 25% growth in exports of
certified organic products, reflecting
changing consumer preferences globally.
Changing Consumer
Preferences and
Emerging Markets
The evolving preferences of consumers
worldwide have played a crucial role in
shaping India's agricultural trade. As
global consumers become more health-
conscious and environmentally aware,
there has been a shift towards organic
and sustainably produced agricultural
products. India, with its rich biodiversity
and traditional farming practices, has
tapped into this trend to position itself
as a supplier of premium, eco-friendly
agricultural goods.
For example, the export of organic
agricultural products witnessed a 25%
annual increase, indicating a strategic
alignment with global consumer trends.
Additionally, the diversification of
exports to include value-added
products, such as processed foods, has
contributed to a 15% increase in export
revenue.
14. REASONS FOR SHIFTS IN INDIA'S AGRICULTURAL TRADE
Technological Advancements
The adoption of modern agricultural
practices and technologies has been a
key driver of change in India's
agricultural trade. The Green Revolution
of the 1960s and 1970s laid the
groundwork for increased productivity,
but subsequent decades witnessed a
more nuanced integration of technology.
Genetically modified crops, precision
farming techniques, and innovations in
agricultural machinery have played a
crucial role in boosting yields and
enhancing the quality of agricultural
products.
The adoption of precision farming
technologies led to a 20% increase in
overall agricultural productivity.
Genetically modified crops, designed for
pest resistance and higher yields,
contributed to a 30% reduction in post-
harvest losses. These technological
advancements not only influenced the
volume of agricultural trade but also
positioned India as a provider of high-
quality, technologically advanced
agricultural products.
Global Economic & Environmental
Factors
The agricultural trade landscape is
intricately linked to global economic
trends and environmental conditions.
Fluctuations in global commodity prices,
currency exchange rates, and economic
downturns have influenced the
competitiveness of Indian agricultural
products in the global market.
Additionally, environmental factors,
including climate change and
sustainability concerns, have introduced
a layer of complexity to India's
agricultural trade.
For instance, during the global economic
downturn in 2020, India experienced a
10% decrease in agricultural export
revenue, highlighting the vulnerability of
the sector to external economic shocks.
On the environmental front, the
increased focus on sustainability
resulted in a 25% growth in exports of
certified organic products, reflecting
changing consumer preferences globally.
Changing Consumer Preferences and
Emerging Markets
The evolving preferences of consumers
worldwide have played a crucial role in
shaping India's agricultural trade. As
global consumers become more health-
conscious and environmentally aware,
there has been a shift towards organic
and sustainably produced agricultural
products. India, with its rich biodiversity
and traditional farming practices, has
tapped into this trend to position itself
as a supplier of premium, eco-friendly
agricultural goods.
For example, the export of organic
agricultural products witnessed a 25%
annual increase, indicating a strategic
alignment with global consumer trends.
Additionally, the diversification of
exports to include value-added
products, such as processed foods, has
contributed to a 15% increase in export
revenue.
Policy
Interventions &
Government
Initiatives
Government policies and
interventions have been instrumental
in shaping India's agricultural trade.
Subsidies, export incentives, and
initiatives to promote specific crops or
practices have directly influenced
trade patterns. The government's role
in negotiating regional and bilateral
trade agreements has also been a
significant factor in determining the
direction and composition of
agricultural trade.
For instance, subsidies on organic
farming practices resulted in a 25%
increase in organic agricultural
exports. Regional and bilateral
agreements, such as the ASEAN-India
Free Trade Agreement, contributed to
a 20% increase in agricultural exports
to Southeast Asian nations.
