Indian marine products exports: Growth, instability and geographical diversification

Abstract

The export of marine products is a significant source of foreign exchange and plays a crucial role in the Indian economy by generating income and employment opportunities. The marine sector contributed 25% (4.13 million t) to the overall fish production in India during the fiscal year 2022-23. The primary objective of this study is to analyse the growth rate, instability, and geographical diversification of marine product exports in terms of both quantity and value. Secondary data related to the major export destinations (Japan, USA, European Union, China, South-East Asia, Middle East and others) and item-wise export (shrimp, finfish, cuttlefish, squid, dried, live, chilled and others) of marine products from India during the period 2000-01 to 2019-20 were collected from the Marine Product Export Development Authority (MPEDA). The growth rate, instability and geographical diversification of exports were estimated using the semi-log regression model, instability index (Ray’s method) and Simpson’s diversity index, respectively. The findings reveal that the overall growth rate of marine product exports over the last two decades was 7.13%. Dry fish exhibited the highest growth rate (15.34%) among all products, and South-East Asia showed the highest growth rate (16.05%) among destinations. However, a significant decline in growth rates of export quantity and value was observed between the two decades for all items, except for frozen shrimp, accompanied by an increase in export instability. The Simpson’s diversity index indicated a significant diversification of 70%, reflecting wide variety of marine products exported as well as the broad range of destination countries. Keywords: Ray’s instability index, Seafood exports, Simpson diversity index, Growth rate