{"id":166661,"date":"2025-08-12T13:30:24","date_gmt":"2025-08-12T08:00:24","guid":{"rendered":"https:\/\/www.practicemock.com\/blog\/?p=166661"},"modified":"2025-08-12T14:46:30","modified_gmt":"2025-08-12T09:16:30","slug":"vishleshan-for-regulatory-exams-12th-august-2025","status":"publish","type":"post","link":"https:\/\/www.practicemock.com\/blog\/vishleshan-for-regulatory-exams-12th-august-2025\/","title":{"rendered":"Vishleshan for Regulatory Exams, 12th August 2025:\u00a0Farm Exports: An Unsung Driver of India\u2019s Growth"},"content":{"rendered":"\n<p><\/p>\n\n\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/www.practicemock.com\/blog\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/www.practicemock.com\/blog\/category\/vishleshan\/\">Vishleshan<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\">Vishleshan: Farm Exports Driving India\u2019s Growth<\/span><\/span><\/div>\n\n\n<p><\/p>\n\n\n\n<p><strong>Want to get ready for the UPSC, RBI, SEBI, or NABARD exam?<\/strong> If yes, you have to stay updated about key economic and regulatory updates. In today\u2019s edition of&nbsp;Vishleshan, we\u2019ll discuss Farm Exports: An Unsung Driver of India\u2019s Growth. These issues are highly relevant for all the upcoming competitive exams mentioned above. Keep reading to stay ahead with a clear understanding of these current updates.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-vivid-cyan-blue-background-color has-text-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/rbi-grade-b-test-series\/?ref=13945\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Take a Free RBI Grade Mock Test to Boost Your Preparation and Improve Success 10X Faster!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\">Farm Exports: An Unsung Driver of India\u2019s Growth<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Context<\/strong>: The country\u2019s merchandise exports are flat, if not declining, while agri exports are set to touch a new high this year. A lot, however, hinges on the Trump tariffs going ahead. If trends hold, farm exports could even touch $55 billion in 2025-26, crossing the previous record of $53.2 billion in 2022-23.<\/p>\n<\/blockquote>\n\n\n\n<p><strong>Link to the Article<\/strong>: <a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/indias-rising-farm-exports-10181901\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><strong>Indian Express<\/strong><\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>India\u2019s overall merchandise trade experienced a virtually flat growth of <strong>0.1%<\/strong> in <strong>2024-25<\/strong>, with exports reaching <strong>$437.4 billion<\/strong>. In contrast, the agricultural sector demonstrated remarkable resilience, with farm exports growing by <strong>6.4%<\/strong> to <strong>$51.9 billion<\/strong>. While India remains a net exporter of agricultural produce, its trade surplus in this sector has more than halved since 2013-14 due to imports rising at a faster pace than exports. This trend is driven by a strong rebound in agricultural production and a lifting of export restrictions, but it now faces potential headwinds from new US tariffs.<\/p>\n\n\n\n<p><strong><u>India&#8217;s Exports and Imports in FY2024-25<\/u><\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"681\" height=\"363\" src=\"https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/08\/image-17.png\" alt=\"\" class=\"wp-image-166667\"\/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Overall Merchandise Trade:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Exports:<\/strong> India exported goods valued at <strong>$437.4 billion<\/strong> in <strong>2024-25<\/strong>, which was a marginal <strong>0.1% increase<\/strong> over the previous year. The country&#8217;s overall merchandise exports have witnessed &#8220;virtually flat growth&#8221;.<\/li>\n\n\n\n<li><strong>Imports:<\/strong> Imports for the same period were <strong>$720.2 billion<\/strong>.<\/li>\n\n\n\n<li><strong>Trade Deficit:<\/strong> This resulted in a total merchandise trade deficit of <strong>$282.8 billion<\/strong> during 2024-25.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Agri and Allied Sectors Contribution:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Agricultural Exports:<\/strong> These registered a <strong>6.4% growth<\/strong>, rising from <strong>$48.8 billion in 2023-24 to $51.9 billion in 2024-25<\/strong>. This performance stands in sharp contrast to the &#8220;virtually flat growth&#8221; in overall merchandise exports.<\/li>\n\n\n\n<li><strong>Agricultural Imports:<\/strong> These amounted to <strong>$38.5 billion<\/strong> in 2024-25.<\/li>\n\n\n\n<li><strong>Agricultural Trade Surplus:<\/strong> Unlike the overall merchandise trade deficit, India&#8217;s agricultural sector had a trade surplus of <strong>$13.4 billion<\/strong> in 2024-25.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong><u>Analysis of the Article and Decoding the Agri-Trade Issue<\/u><\/strong><\/p>\n\n\n\n<p>The article analyses the performance of India&#8217;s agricultural trade, highlighting its recent resurgence, the factors driving it, and the potential challenges that lie ahead.<\/p>\n\n\n\n<p><strong>1. Resurgence of Agricultural Exports:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Historical Trend:<\/strong> Farm exports saw a strong surge from <strong>$7.5 billion in 2003-04 to $43.3 billion in 2013-14<\/strong>. They fell thereafter until <strong>2020-21<\/strong> before picking up to hit a record high of <strong>$53.2 billion in 2022-23<\/strong>.<\/li>\n\n\n\n<li><strong>Drivers of Recent Growth:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Monsoon-aided Rebound:<\/strong> The recovery is attributed to a <strong>monsoon-aided agricultural production rebound in 2024-25<\/strong>, which eased domestic inflationary pressures. A &#8220;second consecutive above-normal monsoon this year should enable the Modi government to also lift the export restrictions on sugar&#8221;.<\/li>\n\n\n\n<li><strong>Lifting of Export Curbs:<\/strong> The government has gradually relaxed curbs on commodities like wheat, rice, and sugar, which were imposed in response to rising domestic food inflation.<\/li>\n\n\n\n<li><strong>Global Shortfalls:<\/strong> Indian exporters of coffee and tobacco have benefited from output shortfalls in Brazil, Vietnam, and Zimbabwe.<\/li>\n\n\n\n<li><strong>Q1 FY26 Performance:<\/strong> In the first three months of FY26, farm exports posted a <strong>5.8% year-on-year increase<\/strong> over April-June 2024. Major items showing impressive growth include marine products, non-basmati rice, buffalo meat, coffee, tobacco, and fruits &amp; vegetables.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>2. A Declining Agri-Trade Surplus:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Trade Balance:<\/strong> While India remains a net exporter of farm produce, its agricultural trade surplus has <strong>&#8220;more than halved from $27.7 billion in 2013-14&#8221;<\/strong>.<\/li>\n\n\n\n<li><strong>Imports Rising Faster:<\/strong> This decline is because <strong>imports are &#8220;going up at a faster pace than exports&#8221;<\/strong>.<\/li>\n\n\n\n<li><strong>Major Import Items:<\/strong> India&#8217;s farm imports are concentrated in a few commodities. More than <strong>two-thirds of the import value in 2024-25 came from vegetable oils, pulses, and fresh fruits<\/strong>.\n<ul class=\"wp-block-list\">\n<li><strong>Pulses:<\/strong> Imports scaled a new high of <strong>7.3 million tonnes (valued at $5.5 billion) last fiscal<\/strong>, driven by the <strong>2023-24 El Ni\u00f1o-induced drought<\/strong> and a government decision to slash import duties.<\/li>\n\n\n\n<li><strong>Other Items:<\/strong> Imports of <strong>vegetable oils, cotton, and natural rubber<\/strong> continue to rise because domestic production is unable to meet increasing demand.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>3. The US Tariff Threat as a Major Headwind:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Trump&#8217;s Tariff Threat:<\/strong> Union Commerce Minister Piyush Goyal acknowledged the &#8220;likely disruptions to global trade from US President Donald Trump\u2019s tariff attacks, including the slapping of a 50% duty on Indian goods&#8221; year than last year\u201d. This was notwithstanding the likely disruptions to global trade from US President Donald Trump\u2019s tariff attacks, including the slapping of a 50% duty on Indian goods.]. The <strong>&#8220;50% prospective tariffs on Indian goods from August 27&#8221;<\/strong> may cause exports to &#8220;come under pressure&#8221;.<\/li>\n\n\n\n<li><strong>Sectors to be Impacted:<\/strong> The maximum impact of the tariffs would be on <strong>marine products<\/strong>, where the US accounts for <strong>35% of India\u2019s exports in this category<\/strong>.<\/li>\n\n\n\n<li><strong>Secondary Effects:<\/strong> The US has also imposed a <strong>50% import duty on goods from Brazil<\/strong>. If coffee is not exempted, the resulting surplus could depress prices in other markets, in turn hurting Indian shipments.<\/li>\n\n\n\n<li><strong>Resilience to Date:<\/strong> Despite the tariff threats, agricultural exports to the US have been &#8220;buoyant,&#8221; growing by <strong>24.1% in January-June 2025<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>In conclusion, India&#8217;s agricultural sector has shown strong growth and resilience, driven by a domestic production rebound and a relaxation of export restrictions. While this has allowed India to maintain a net exporter status, the agricultural trade surplus is shrinking due to a faster rise in imports of key commodities. The sector&#8217;s current momentum faces a significant and looming threat from new US tariffs, which could particularly impact key export items like marine products and disrupt global commodity prices.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Farm exports are emerging as key growth driver for India. Get the latest analysis for RBI, SEBI, NABARD, and UPSC exam preparation in this Vishleshan update.<\/p>\n","protected":false},"author":6,"featured_media":166678,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[4022],"tags":[],"class_list":["post-166661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-vishleshan"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Vishleshan for Regulatory Exams, 12th August 2025:\u00a0Farm Exports: An Unsung Driver of India\u2019s Growth<\/title>\n<meta name=\"description\" content=\"India\u2019s farm exports are growing fast despite flat overall trade. 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Get the latest analysis for RBI, SEBI, NABARD, and UPSC exam preparation in this Vishleshan update.","_links":{"self":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts\/166661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/comments?post=166661"}],"version-history":[{"count":0,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts\/166661\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/media\/166678"}],"wp:attachment":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/media?parent=166661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/categories?post=166661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/tags?post=166661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}