A Constant Market Share Analysis of India’s Export Competitiveness of Fruits, Nuts and Vegetables

Abstract

Horticultural exports in developing countries are a tool for enhancement of livelihoods, and employment creation. This study assessed the pattern of India’s horticultural export competitiveness vis-a-viz the rest of the world, focusing on high value horticultural products of fruits, nuts, and vegetables. It assumed the Constant Market Share method for same products for the period 2002 -2021. Results of the study came out a mixed bag. In the vegetable category, products like mushroom, tomatoes, onions, and cabbages revealed a positive competitive effect. The result showed growth in India’s global share for the same products in markets like the United Arab Emirates, a situation that could be attributed to large Indian diaspora population in same country.  On the other hand, commodities like green beans, cucumbers and fresh vegetables recorded negative competitive effects. Under fruits and nuts, the products showed a strong structural competitive effect suggesting a global demand driven by global demographic appetite for healthy and nutritional dietary requirements.   The results have a trade policy ramification that India needs to strengthen product specific and market specific strategies to enhance competitiveness of all horticultural products as well as strengthen value chain linkages, from farm to fork.