Abstract
This study has focused to analyze the influence of agricultural trade on economic growth in India obtaining annual time series data from 1990-91 to 2016-17. This study estimates the relationship between agricultural exports and economic growth in India employing the Error Correction Model. This study has used three variables such as, Gross Domestic Product (GDP), agricultural exports and non-agricultural exports. According to empirical estimates, the Error Correction Model, that is to say catch can tend towards the long run relationship, has been validated. The variables are converging to equilibrium value and the change in agricultural exports and non-agricultural exports are directly affecting the real GDP in India. Furthermore, this study found that there is short-run uni-directional causality between agriculture exports, non-agriculture exports to GDP in India. The main finding of this study is that the agricultural exports and non-agricultural exports are important variables to stimulate economic growth in India. This study recommends an increase effort to be directed towards policies that will expand the volume of a country’s agricultural productivity and trade for the economic growth in the country.
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