Export prospects for APEDA products to the developed countries: An analysis

Abstract

For any economy, exports play a vital role in stimulating growth. Especially in the case of developingcountries like India with large agricultural base, it becomes all the more important. This includesproduction and demand linkages, economies of scale due to larger international markets, increasedefficiency, and adoption of superior technologies embodied in foreign-produced capital goods, learningeffects and development of human resources and increased productivity through specialization (Basu etal., 2000; Fosu, 1990; Santos-Paulino, 2000; and Giles and Williams, 2000). It also has the potential tosolve pertinent issues like poverty reduction and employment generation. South East Asian countrieslike Hong Kong, South Korea, Singapore and Taiwan recognized the importance of export-led growth(ELG), and achieved high and sustained growth levels.According to data available in APEDA publications, India currently produces 40% of world’s mangoes,26% bananas, 12% onion 18% cashew nuts and 28% green peas. We have started exporting Mangoes,grapes, mushrooms, and onions to the United Kingdom, Middle East, Singapore and Hong Kong. Only 15countries including Saudi Arabia, UAE, United Kingdom, Bangladesh and South Africa account for morethan 63% of the country’s export of fruit, vegetables and other agricultural products.1This report tries to find out the current standings of India in the world export market in terms of APEDA(Agricultural and Processed Food Products Export Development Authority) products, compare it with theworld standards, and find out the potential and the recommendations which may help India to attainthe same.