Indian agricultural exports may grow to $100 billion By 2022

The value of Indian agricultural exports up to August this year is US$38.74 billion, and it is likely to grow to US$100 billion by 2022. If the India export sector takes advantage of the Sino-US trade war, SMEs will export a lot with overseas buyers.

According to experts, Indian agriculture is likely to achieve substantial growth in recent years. By 2022, the country’s total agricultural exports are expected to grow to 100 billion US dollars, and farmers’ income is expected to double.

Rajju Shroff, President of the Crop Conservation Federation of India(CCFI) and General Manager of United Phosphate Co., Ltd. said: “India’s agricultural production value is 367 billion US dollars, ranking second in the world. We have the potential to increase the total export value to 100 billion US dollars in 2022 and double the income of farmers. According to the latest data from the WTO, the current total global agricultural exports is more than 1.5 trillion US dollars, while India’s export is currently less than 35 billion US dollars. We have called on the government to make efforts to increase agricultural export, and try to achieve a three-fold increase in exports in 2022 and a two-fold increase in peasant income.”

Environmental and agricultural centre (Centegro) in Mumbai, a non-profit organization, co-authored a report with experts from the Tata Strategic Management Group, which was recently released by Federal Minister Nitin Gadkari. The report emphasized that India needed to increase its share of global agricultural exports in order to increase farmers’ income. India’s agricultural production ranks second in the world, while services and manufacturing rank 11th and 12th respectively. The contribution of agriculture to the Indian economy has gone beyond the scope of the rural economy. It also covers many other scopes like the manufacturing and service industries. The report pointed out that India’s agricultural exports trade surplus was higher than manufacturing.

Tradedigits provides India import manifest data with detailed Indian importers list and its oversea suppliers list and purchasing amount of each imported goods. By this valuable information, you are able to find you Indian buyers and know exactly about your competitors who are in the same industry and also want to do business with the Indians.

How India’s exports benefit from the US-China trade war

Although the ongoing trade war between the two largest economies in the world, the United States and China, has triggered alarms for global economic growth, India may eventually become a major beneficiary if India is to function properly.

In the face of higher import tariffs imposed by Beijing, India can capture the Chinese commodity market vacated by US exports. In fact, India can replace US exports to China on at least one hundred kinds of products, totaling about $130 billion.

In the last fiscal year, India’s exports to China were 12480 crore, while its imports from China’s totaled Rupee 419 million. In other words, the trade deficit far exceeds 400,000 rupees.

The overlapped products which are imported from both the United States and India and are within China-US trade war list are particularly interested in by India. For example, fresh grapes, cotton linters, flue-cured tobacco, lubricants and benzene, etc.. India also exports these items to China.

“India has the chance to export more of these products to China due to tariff differences and China’s large demand,” said people familiar with the matter. The good news for India is that although China imposes a 15-25% tariff on these goods from the United States, other countries only need to pay a 5-10% tariff.

In addition, according to the Asia-Pacific Trade Agreement, India has received an additional 6% to 35% MFN tax reduction, which makes Indian exports currently more competitive.

In addition to China, India also exports products to other parts of the world, products such as oranges, almonds, walnuts, durum wheat, corn and grain sorghum. It is worth noting that the value of these products exported by the United States to China exceed $10 million.

Learn more about India trade information by India trade data (or India import export data)

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