Volume : 5, Issue : 9, September - 2016

AGRICULTURAL AND PROCESSED FOOD PRODUCTS EXPORT CONTRIBUTION TO INDIAN GDP AND FUTURE TREND

Mr. S. Thowseaf, Dr. M. Ayisha Millath

Abstract :

<p>&nbsp;Increasing population in global scale has imposed a great demand on basic amenities such as food, shelter and clothing. Clearly food and clothing&rsquo;s are the derived out of agriculture, India&rsquo;s traditional farming occupation and tropical climate have induced a great scope for producing products and food for consumption. Despite India is being a 2nd largest populated country is rising itself in world economy by increasing GDP through Export. India is the second largest producer of fruits around the world whose global share is estimated to be approximately 10% and second largest producer of vegetables whose global share is calculated to be &asymp;15%. Despite of 20-30% wastage due to lack of infrastructure, technology, inadequate knowledge on &ndash; processing, storage and transportation, India could still stand as largest producer of agro products. India&rsquo;s agricultural and processed food exports are negligible in comparison to the total production because, large amount of production are used for domestic consumption. Currently 16% of India&rsquo;s GDP relay on agriculture. Agriculture and processed food export constitutes 10% of the total country&rsquo;s export. Thereby export is an important tool to hedge the demand of foreign currencies and increase the Indian money value in international market alongside lifting the economy from the surplus produced. This paper examines the contribution of agricultural and processed food towards Indian GDP. Secondary data had been used for the purpose of trend analysis to forecast the future contribution by agricultural and processed food industry. The result thus derived through trend analysis indicates increased net income in projected years despite of decrease in production of agricultural and processed food metric tonnage.</p>