Determinants of India’s Agricultural Export

TarekTawfikAlkhteeb Zafar Ahmad Sultan


In the past decade, India has emerged as a major agricultural exporter, with exports climbing from just over $5 billion in 2003 to a record of more than $39 billion in 2013. India became the world’s seventh-largest exporter of agricultural products in 2013, surpassing Australia. In terms of net exports, India is now the world’s sixth-largest net exporter, with net exports doubles those of the EU-28. The study found that there exist a long run cointegration relationship between agricultural exports of India and Real effective exchange rate (REER), demand for agricultural products, agricultural production and India’s per capita income. All these variables Granger cause agricultural export in the short run as well as in the long run.

Keywords: Agricultural Exports, REER, World import of agricultural goods, agricultural production, per capita income.

JEL: F14, Q170.

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