Opportunities in Food Market: Can India become Global Food Hub?
Opportunities in Food Market:
Can India become Global Food Hub?
Before making any generalised policy statement on trade issues, we must understand what is happening in the world market and why India policies and Indian companies failed to capitalise on existing opportunities so far.
(all numbers in graphs are USD x1000)
If you see the following table, you will find India is very small player across segements. The only area where we have made impact in trade is basic commodities i.e. expolitation of natural resources only that too due low cost and export related subsidies. There is no premium due to missing innovation, value addtion or quality. We generally remained low cost producer and not high quality producer. Any fluctualtion in currency impacts our exports negetively.
(all numbers in graphs are USD x1000)
Look at our share in world trade. Why it is so low, there must be investigation in all segemnts of business. Every business segment has its own challenge. The probelm, is we have generalised policy for exports which is of no use in highly competitive world.
At the same time out domestic market is also growing and putting pressure on natural resources. India is not surplus in food otherwise where is so much hunger and malnutriton. If we cannot feed our on population, can be afford to feed the world.
Should we feed the world and keep our own citizens hungry. Is it sensible and logical approach?
Even if we want to export, we must address fundamental issues as mentioned below. In absence of the following, we cannot have any meaningful role in world market.
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