Convergence and Clustering of Agricultural Exports from India: A Dynamic Analysis of Competitiveness and Specialisation: 25450
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https://doi.org/10.35716/IJED-25450
Author: Averyl Pires and B.P. Sarath Chandran
Author Address: Goa Business School, Goa University and Assistant Professor of Economics, St. Xavier’s College, Mapusa, Goa-403507
Abstract
This
study examined the competitiveness of agricultural exports from 1991 to 2020 in
India by assessing convergence and divergence across 24 agricultural
subsectors. Using dynamic measures of comparative advantage, the analysis
applies ?- and ?-convergence of the Revealed Symmetric Comparative Advantage
(RSCA) index and the Trade Balance Index (TBI), along with hierarchical
clustering to capture long-run competitiveness patterns beyond static RCA
measures. The findings reveal significant ?-convergence in RSCA (–0.41),
indicating that initially weaker subsectors, such as dairy, processed foods, and
vegetables, have strengthened over time. Despite declines in cereals and
tobacco, TBI results show an overall improvement in export performance. Cluster
analysis highlights a shift toward value-added and horticultural products,
while bulk commodities exhibit stagnation. The study underscores the unevenness
of structural transformation and emphasises the importance of policies that
promote quality, branding, logistics, and diversification into high-value
agricultural exports.
Keywords: Agriculture
exports, cluster analysis, comparative advantage, diversification, trade
balance.