From 1990s onwards, the share of farm exports in India's total exports has gone down gradually. Analyze the reasons for the same

Prior to liberalization era, share of farm exports was around 20% but post 1990, the share has experienced a steep fall to 11% in 2012 owing to the outperformance of service and manufacturing sector. With the unveiling of LPG reforms, services and manufacturing sector got a fillip due to enabling factors such as liberalized norms, end of compulsory licensing, increase in FDI limits etc. These parameters were able to usher in a renewed vigor amongst Industry and serivce sector, and agriculture industry got shifted back burner. Nevertheless India still continues to be a net exporter with the main exporting products being Basmati rice, buffalo meat, marine products, sugar, tea, cotton, jute etc.

Question for UPSC Mains:
From 1990s onwards, the share of farm exports in India’s total exports has gone down gradually. Analyze the reasons for the same.
Hint: The key reason is that services exports (mainly software and IT) and manufactured exports (mainly engineering exports) have outperformed agriculture. Thus, only farm sector should be blamed. India still is a significant exporter of farm products with 10th rank in global agricultural and food exports.

Published: October 27, 2015 | Modified:June 27, 2019

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