Export Potential and Competitiveness of Processed Food Products from India

Abstract

The liberalization of trade and India's accession to the World Trade Organization (WTO) have brought about significant changes in India's agricultural trade and food processing industry. This study aims to evaluate the export competitiveness of processed food products from India by analyzing their comparative advantage and export potential over a specified time period. The study utilizes secondary data from sources such as the Agricultural and Processed Food Products Export Development Authority (APEDA), Food and Agricultural Organization (FAO), and International Trade Centre (ITC) for the analysis. The selection of processed food products is based on the major processed food products exported by food processing industries in Gujarat. Analytical tools employed are compound annual growth rate (CAGR), revealed comparative advantage (RCA), and nominal protection coefficient (NPC). These tools help assess growth rates, comparative advantage, and competitiveness of the selected commodities with the data on export potential Provided by ITC. The study highlights the export potential and unrealized potential of processed foods which is more than 7.9 billion dollars and 4.5 billion dollars respectively. Among the selected commodities the food preparations with HS code 210690 are observed to have the highest potential. The analysis identifies the largest unrealized potential was in countries such as the United States, Saudi Arabia, China, and UAE for many of the selected processed food products. It was also observed in the export performance of selected processed foods for the last 10 years, with notable growth rates observed in miscellaneous preparations and bread, pastry, and other baked foods. This study concludes by highlighting the Potential of selected food products and also shows the presence of competitive advantage of selected foods in the USA, UAE, UK, Australia, and Saudi Arabia. It highlights the opportunities for manufacturers to expand their exports, capitalize on untapped market potential, and enhance their business growth.