Vol. 12, Special Issue 7 (2023)

Author(s):
Payal M Patel, Mahesh R Prajapati and Vishita R Khanna

Abstract:
The study was an attempt to investigate India’s Export Potential and Competitiveness of Selected Dairy Products with Nepal over the period 2012-2021. Statistical Tools Export Potential as Developed by International Trade Centre were used for analyzing Export Potential of Dairy Products, Revealed Comparative Advantage (RCA) and Bilateral Revealed Comparative Advantage (BRCA) were used to calculate an index of competitiveness of dairy products both at the global and bilateral level with Nepal respectively. It was found that the actual export of dairy products from India to Nepal exceeds the export potential, citing close proximity, open borders, and similar consumption of a variety of dairy products as major facilitators. Nearly 80% of Nepal’s dairy imports originate from India. India has a comparative advantage in sweetened milk powder and low-fat milk powder globally. Milk powders are advantageous for long-distance transportation and extended storage, making them suitable for trade over extended periods or distances. Though India is the largest milk producer, the majority of Indian dairy products are less competitive worldwide. By emphasizing quality standards and conducting research, India can Explore markets and increase the value of its dairy exports. The dairy products like Ice cream & other edible ice; Low-fat milk powder; Butter; Cheese; Milk & Cream (not concentrated nor containing added sugar); Concentrated Sweetened Milk and Cream; Buttermilk, curdled, or fermented milk, Kephir; High-fat milk & cream in which India had a Bilateral revealed comparative advantage in Nepal may be due to more popularity of this dairy products among consumers.