Agriculture Trade Scenario in India and Its Global Comparisons

Abstract

Indian economy has undergone structural changes over time with the anticipated decline in the share of agriculture in GDP. Despite a fall in its share from 55.1 percent of GDP in 1950-51 to 15.35 percent in 2015-16, the importance of agriculture has not diminished mainly for two reasons. First, country achieved self-sufficiency in food production at the macro level, but still a food deficit country facing massive challenges of high prevalence of malnourished children and high incidence of poverty. Second, the dependence of the rural workforce on agriculture for employment has not declined in proportion to the sectoral contribution to GDP. It is in this context of rapid transformation of trading environment in India and the world as a whole, an attempt has been made to examine the growth pattern of agricultural sector in India. The study also examined the commodity composition and structural changesinagricultural exportsand direction of agricultural exports of India from 1991-92 to 2013-14. The study reveals that in 24 years of post-reform period, the growth of agriculture and allied sector has not been stable. It is more or less dependent on monsoon which shows the backwardness of the Indian agriculture sector and failure of new reforms to improveagriculture sector. Trends in imports and exports show that integration of Indian agriculture with global economy has improved considerably during post reform period. But still percentage of imports in total imports is quite less and percentage of exports to totalexports has shown declining trend during the post reform period particularly post-WTOperiod. Regarding the international comparisons of India with other countries, the study depicts that India lags behind the world in all the major indicators of agricultural growth. India is also facing critical situation as regards the production and yield of selected commodities. As most of the farming in India is monsoon dependent. Irrigation problems have to be addressed by the government. Indian agricultural productivity is very less as compared to world standards due to use of obsolete farming technology. Sustainability in agriculture is of utmost importance. When proper technology (in water management at the regional, state and national levels as well as crop plan of what to produce and where to produce) is used, it will be a win-win situation for both the farmers and the country.