Impact of WTO on Trade Performance of Tea and Coffee in India

The impact of the World Trade Organisation (WTO) on export-import performance of India’s tea and coffee was assessed from 1970 to 2021 using secondary data from FAOSTAT. The study divided the data into pre-WTO (1970-1994) and post-WTO (1995-2021) periods, employing statistical tools like Compound Annual Growth Rate (CAGR), Coefficient of Variation (CV), and Revealed Comparative Advantage Index (RCA). Over this period, the contribution of tea exports to India’s total agricultural exports steadily declined, while coffee exports exhibited fluctuating trends, ultimately decreasing in 2021 compared to 1990. India’s share in global tea exports consistently decreased, hitting a low point in 2021. In contrast, coffee’s global share experienced modest growth from 1990 to 2021, though not significant. CAGR was higher in the post-WTO era than the pre-WTO period for both tea and coffee, while CV values were lower post-WTO. Regarding the RCA index, India showed a stronger advantage in the pre-WTO period for both commodities, which diminished in the post-WTO era. Despite WTO benefits, India’s tea and coffee sectors face challenges, emphasizing the need for diversification, quality control, and strategic positioning to maximize WTO advantages.