Role of Intensive and Extensive Margins in Agricultural Exports of India

A large number of products exported by India to several countries in 2004 were no longer exported in 2015 and therefore policies should aim at promoting exports of traditional agricultural products. A major fallacy among the trade experts in India is that the country should necessarily explore new markets in the developing world if it has to increase its export volume. This study has suggested that India can reap rich dividends if it adopts policies that aim at accelerating export growth at the intensive margin. Contrary to the general opinion, for Indian there exists a huge potential for India to expand and intensify its exports with the existing traditional global partners. However, the government has to promote agricultural production and exports on large scale in order to retain its traditional global market share in agricultural commodities.