Terms and Balance of Trade of Indian Agricultural Sector during Pre and Post-WTO Period
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Author: Kavita1, V.P. Mehta2, Raj Kumar3, and Dalip Kumar Bishnoi4
Author Address: 1Assistant Professor, 2Professor, 3Senior Research Fellow and 4Assistant Scientist, Department of Agricultural Economics, CCSHaryana Agricultural University, Hisar-125 004
Keywords: Agricultural trade, export and import indices, terms of trade, trade balance, WTO.
JEL Codes: F10, F14, Q17, Q18, Q27.
Abstract
India is the world’s third-largest economy after the US and China. India is also one of the leading producer of spices, fish, poultry, livestock and plantation crops, and leading exports consisted of basmati rice, meat of bovine animals, frozen shrimp and prawns, cotton and refined sugar. The study was based on secondary data collected from the various published sources, viz., various issues of handbook of RBI, FAO trade yearbook, Statistical Abstract of India, FAOSTAT, etc. The data were grouped into two periods Pre-WTO 1975-94 and Post-WTO 1995-2015.The exports volume indices for agricultural sector of India were increased by 129.41 percent from 17 in 1975 to 39 in 1994. Besides, the volume indices of imports declined by 56.16 percent from 73 in 1975 to 32 in 1994 for agricultural sector of India. The unit value indices of agricultural exports of India declined by 17.69 percent from 113 in 1975 to 93 in 1994. However, the agricultural import indices grew considerably 171.42 percent from 42 in 1975 to 114 in 1994.The quantity terms of trade for agricultural sector of India was deteriorated by 80.89 percent from 429.41 in 1975 to 82.05 in 1994. Likewise, value terms of trade for agricultural sector of India also depreciated by 67.44 percent from 269.05 in 1975 to 81.58 in 1994. The exports volume indices for agricultural sector of India were increased by 125 percent from 72 in 1995 to 162 in 2015. The volume indices of imports were also enlarged by 934.78 percent from 23 in 1995 to 238 in 2015 for agricultural sector of India. The unit value indices, which measure the average price realization, indicated a significant increase in unit value indices of agricultural exports of India turn up by 131.76 percent from 85 in 1995 to 197 in 2015. However, the agricultural import indices declined by 0.64 percent during post-WTO period. The quantity terms of trade, as well as value terms of trade for agricultural sector of India, was improved by 359.95 and 133.25 percent, respectively during post-WTO regime. The trade balance of Indian agricultural sector showed a favorable balance during pre-WTO period as well as post-WTO period.
Description
Indian Journal of Economics and Development
Volume 16 No. SS, 2020, 288-293
DOI: https://doi.org/10.35716/ijed/NS20-003
Indexed in Clarivate Analytics (ESCI) of WoS
Kavita1, V.P. Mehta2, Raj Kumar3, and Dalip Kumar Bishnoi4
1Assistant Professor, 2Professor, 3Senior Research Fellow and 4Assistant Scientist, Department of Agricultural Economics, CCSHaryana Agricultural University, Hisar-125 004
Corresponding author’s email: rajkumarkashyap301@gmail.com