Economic Analysis of the Export Trends of Livestock and Livestock Products in India

Abstract

Livestock provides livelihood to two-third of rural masses and employs about 8.8 per cent population of India. While dairying ensures livelihood to 70 million farm families. The study utilized export data from government sources and conducted a statistical analysis to assess trends and stability. Data revealed that the overall export value increased significantly from ₹22,092.62 crore in 2011-12 to ₹48,947.55 crore in 2021-22, reflecting a compound annual growth rate (CAGR) of 4.90%. Buffalo meat emerged as the leading export product, while dairy products exhibited a notable growth rate while dairy products and other categories showed varied growth. The instability index for the total exports was 19.02%, indicating moderate stability. State-wise analysis indicated Uttar Pradesh as the leading exporter, followed by Maharashtra and Haryana, with these three states together accounting for 85% of the total exports in 2021-22. The average growth rate of exports across states was 3.57%, demonstrating a stable growth pattern. Despite challenges posed by the COVID-19 pandemic, the sector showed resilience with a 13.98% growth in exports for 2021-22, aided by government initiatives. The analysis of dairy product exports highlighted a significant increase from ₹2,382.91 crore in 2020-21 to ₹4,742.70 crore in 2021-22, marking a 99% growth. The primary export destinations were the USA, Bangladesh, UAE, Saudi Arabia, Bahrain, and Malaysia. A transitional probability matrix revealed shifts in market shares, with notable increases in the USA and Bangladesh. Trade performance from 2011-22 showed that India's export share in dairy products improved from 0.03% to 0.135%, while import share decreased significantly. The instability index for exports was 63.53%, reflecting high volatility. Investing in advanced breeding technologies to increase productivity, and enhancing market access through trade agreements and promotional activities. Additionally, policies to manage volatility, such as price stabilization measures and export incentives, could further support industry growth.