Agriculture sector plays a pioneering role in the development of the Indian economy, as it provides employment to about 2/3rd of the total population and contributes to the national income considerably. Agricultural exports have been the backbone of India's export efforts and they expect to do so for its future export growth. Agricultural exports contribute around 13 per cent to India's total export earnings. Agricultural exports are sustainable and their potential to grow is very high. The present paper is an attempt to analyze the issues of growth and instability of India's principal agricultural exports in the new economic environment.