Trade Dynamics and Performance of Indian Horticulture Sector: An Empirical Study
Prakash Singh *
Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004, India.
Sanjay Kumar
Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004, India.
*Author to whom correspondence should be addressed.
Abstract
This study investigated the trade performance of Indian horticultural products, specifically vegetables (HS code 07) and fruits (HS code 08) to five major importing countries. Time series data from 2003 to 2022 was collected from the International Trade Centre (ITC). Various analytical tools were used such as compound annual growth rate, instability index, markov chain analysis, revealed comparative advantage index and trade balance index. The findings revealed that vegetable export share showed a fluctuating upward trend, while fruit exports recorded declined overall. The growth in several key vegetables and fruits remained positive during 2013-2022. Bangladesh and the United States emerged as consistent trade partners. Trade balance indices showed that India maintained a net export position in several key vegetable and fruit products. The study recommends strengthening trade partnerships with reliable markets like Bangladesh and USA and by effectively addressing trade barriers, especially sanitary and phytosanitary (SPS) challenges that hinder exports. Strategic policies are needed to promote investment in modern agricultural technologies and logistics systems to ensure quality standards and cost efficiency.
Keywords: Horticultural trade, fruits and vegetables, revealed comparative advantage, markov chain analysis, trade balance index