Determinants of India’s processed food exports in the post-reforms era

Abstract

The purpose of this paper is to provide insights into the determinants of India’s processed food exports, for which there is massive potential for further growth. The paper provides an overview of India’s processed food exports and examines its determinants to the world as well as to its top export destinations using principal component analysis. The results show that the most important determinant of India’s processed food exports is the country’s resource endowment. The results for other factors such as inflation, REER, trade openness index, GDP of India as well as that of the export destination, etc. are varied.