A Study of Impact of Exchange Rate Volatility on Agricultural Export from India

Abstract

Agricultural exports are an important part of India’s economy and contribute significantly to foreign exchange earnings. The study focuses on the impact of volatility of exchange rate on India’s agricultural exports, with special reference to fresh fruits and specific processed food products / intermediates. The research is based on secondary data (export data and exchange rate) for the period FY 2020–21 to FY 2024–25, collected from sources such as APEDA, the Ministry of Commerce, and the Reserve Bank of India.

The study applies trend analysis, volatility measurement, and a t-test to dive deep in the relationship between exchange rate fluctuations and export performance of subjected products. The result outcomes show that India’s agricultural exports raised from USD 41.87 billion to USD 51.91 billion during the focused study period. However, exchange rate volatility created uncertainty for exporters.

The findings also indicate that processed food exports performed more steadily than fresh fruit exports due to longer shelf life and value addition. Overall, the study suggests that a stable and moderately depreciated exchange rate can support the extensive growth of agricultural products exports from India