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Boosting agro exports: How India is expanding global reach in agri products
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Tuesday, 29 April, 2025, 16 : 00 PM [IST]
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Bhushan Namdeorao Yengade
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India, known for its rich agricultural heritage, is fast emerging as a major global player in agri-exports. Agriculture forms a vital part of the Indian economy, contributing about 18% to the Gross Domestic Product (GDP) and employing nearly 50% of the workforce (World Bank, 2024). Over recent years, India has undertaken multiple initiatives to strengthen its position in international agricultural markets. This article explores how India is expanding its global reach in agri-products by focusing on policy reforms, infrastructural development, international partnerships, and quality improvements, with reference to credible sources such as the Government of India, the Food and Agriculture Organization (FAO), the World Bank, and the Ministry of Food Processing Industries (MoFPI).
The Government of India has launched several strategic policies aimed at boosting agricultural exports. The Agricultural Export Policy (AEP), 2018, serves as a cornerstone of India’s export ambitions. It focuses on doubling farmers' income by promoting exports and removing export restrictions on organic and processed products. This aim is yet to be achieved. The policy seeks to diversify export baskets, destinations, and boost high-value and value-added products.
India is among the world's top producers of several agricultural products, including rice, wheat, spices, fruits, and vegetables. The growing global demand for organic, sustainable, and diverse food products presents a unique opportunity for Indian farmers and agribusinesses. According to the Ministry of Commerce and Industry (Government of India, 2023), India’s agricultural exports crossed the USD 50 billion mark in 2022-23, the highest ever recorded, demonstrating the sector's resilience and potential. Basmati Rice, non-Basmati Rice, Buffalo Meat, Misc Processed Items, Fresh Fruits, Processed Fruits & Juices, Fresh Vegetables, Groundnut, Cereal Preparations, Processed Vegetables are top food exports from India according to Agricultural and Processed Food Products Export Development Authority (APEDA).
Moreover, the formation of Agri Export Zones (AEZs) was an early step to provide a boost to agri-exports by creating clusters for specific commodities. Recently, the government has promoted district-level export hubs under the “One District One Product” (ODOP) scheme, where each district specialises in a product with high export potential.
Infrastructure plays a critical role in agricultural exports. The Pradhan Mantri Kisan Sampada Yojana by MoFPI aims to modernise infrastructure and reduce wastage in supply chains, particularly for perishable commodities like fruits and vegetables. This scheme supports setting up of cold storage facilities, processing units, and modern packaging facilities to meet international standards (MoFPI, 2023).
In addition, APEDA has been instrumental in setting up integrated pack houses and quality control laboratories to facilitate global-standard exports. Initiatives like the Krishi Udan Scheme, under the Ministry of Civil Aviation, have further enabled quicker and cost-effective air transport of perishables.
The World Bank (2023) has also supported India’s logistics reform agenda through its “Logistics Ease Across Different States (LEADS)” index, encouraging states to improve transport efficiency, a key for agricultural supply chains.
Quality Standards and Certification
Meeting international quality and safety standards is essential for agricultural exports. India has significantly enhanced its capabilities through better certification systems. APEDA oversees certification for organic products and offers Geographical Indication (GI) tagging, which helps in brand positioning of unique Indian products like Basmati rice, Darjeeling tea, Kandi pedha from Satara and Alphonso mangoes etc.
The National Programme for Organic Production (NPOP), accredited by the European Commission and the USDA, offers certification for organic farming practices, boosting India's credibility in organic produce exports (APEDA, 2023). The FAO has praised India's strides in harmonising its food safety standards with Codex Alimentarius standards, which facilitates smoother international trade (FAO, 2023).
Product Diversification
India is increasingly moving beyond traditional exports like rice, spices, and tea to newer categories such as organic products, processed foods, nutraceuticals, and ethnic ready-to-eat foods. The government has actively promoted the export of millets, aligning with the FAO’s declaration of 2023 as the International Year of Millets. India, being the largest producer of millets, has leveraged this opportunity to create new global markets for millets and millet-based products.
Moreover, new initiatives in promoting horticulture crops, dairy products, meat, and marine products have also diversified India’s agricultural export basket. MoFPI’s efforts to boost value addition have led to increased exports of processed foods, which fetch higher foreign exchange compared to raw agricultural commodities.
International Collaboration and Trade Agreements
India has entered into several bilateral and multilateral agreements to boost agri-exports. Free Trade Agreements (FTAs) with ASEAN countries, the Comprehensive Economic Cooperation Agreement (CECA) with Singapore, and ongoing negotiations with the United Kingdom, Australia, and the European Union offer tremendous opportunities for Indian agri-products.
Collaboration with the World Bank and FAO on sustainable agricultural practices also ensures that India’s exports align with global environmental and sustainability standards. For example, the World Bank’s projects on climate-smart agriculture in India enhance the resilience of Indian agri-exports against climate-related risks (World Bank, 2023).
Challenges and the Way Forward
Despite the significant progress, challenges remain. Issues like non-tariff barriers, compliance with stringent sanitary and phytosanitary standards, and competition from other emerging economies pose hurdles. Internal challenges such as fragmented supply chains, inconsistent quality, and inadequate cold chain infrastructure in rural areas also persist.
The government is addressing these through initiatives like the Agriculture Infrastructure Fund (AIF), worth Rs 1 lakh crore, to support post-harvest management and community farming assets. Similarly, APEDA is actively working with exporters to facilitate market access and improve compliance with destination country regulations.
Moreover, leveraging digital technology in agriculture — through initiatives like the National e-Governance Plan in Agriculture (NeGP-A) and using blockchain for traceability — is expected to further strengthen India’s agro-export ecosystem.
India’s commitment to boosting its agricultural exports is evident through comprehensive policy frameworks, investment in infrastructure, adherence to quality standards, diversification of products, and international cooperation. As per FAO and World Bank projections, India’s agri-export potential remains significantly untapped, offering room for further growth. With continued reforms and strategic interventions, India is well on its path to becoming a global leader in the agri-export sector, benefitting millions of farmers and strengthening rural economies.
(The author is founder and food industry consultant at Binder Technology Consultancy)
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