India introduced a slow process of trade liberalization two decades ago, but it was only after sweeping policy reforms in 1991 that foreign trade markedly improved. Total trade between 1991 and 2000 increased from $38 billion to $94 billion. Total exports increased from $18 billion to $44 billion, while imports rose from $19 billion to $50 billion. Yet, India's trade is still relatively small compared to other large countries. U.S.-India two-way trade in 2000 was $12 billion.

India's agricultural trade has generally paralleled its overall trade. Agricultural trade more than doubled from $4 billion in 1991 to about $9 billion in 2000. Agricultural exports increased from $3.2 billion to $6.0 billion, while agricultural imports rose from $0.8 billion to $2.8 billion. As in the past, India has maintained a surplus in agricultural trade. The share of agricultural trade in India's total trade is small, and declined to 9.6 percent in 2000 from 10.5 percent in 1991. Agricultural and allied products comprised about 5.6 percent of total imports and 13.5 percent of total exports.

Agricultural commodity trade
Among India's major agricultural imports in 2000, edible oils accounted for about half of the total value. Other major items imported on a regular basis include pulses, cashew nuts, other nuts and fruits, wool and silk, wood and wood products, and raw cotton. During production shortfalls India also imports wheat, rice, sugar, and cotton. Major agricultural exports by India in 2000 included marine products, basmati and nonbasmati rice, oil meals, cashew nuts, coffee, tea, spices, and fruits and vegetables. Recently, India began to export wheat and rice from its surplus government stocks.

U.S.-India two-way agricultural trade has increased to $920 million in 2000, from $378 million in 1991. Generally, the increase was in higher U.S. imports from India.

U.S. agricultural exports to India totaled $137 million, or a 4.9-percent share of India's agricultural imports in 2000. Shipments from the U.S. are mainly nuts and fruits, vegetable oils, raw cotton, pulses, hides and skins, and cereal preparations. The U.S. exports cereal preparations to India as food aid. Cotton and oilseeds are occasionally imported from the U.S., while wheat and rice imports occur in years of shortfalls in government stocks.

U.S. agricultural imports from India accounted for $783 million, or an 8.4 percent share of India's agricultural exports in 2000. Rice, marine products, tea, oil meals, coffee, cashew nuts, and spices are some of the major agricultural products imported from India.

The FATUS database provides U.S. data on India's agricultural exports and imports from India.

Reference
India Agricultural Situation: Brief on Indian Agriculture, 2001.

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