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GTAP Resource #7836

"Beyond the Farm Gate: A CGE Analysis of India’s Agriculture-Industry-Trade Linkages"
Authors: B, Keerthika, Shruti Chopra, Barun Deb Pal and Manmeet Ajmani


Abstract
This study applies a Computable General Equilibrium (CGE) model to examine the macro-economic effects of agri-food policy intervention strategies in India, specifically with respect to crop diversification, agro-processing, and exports. Three different simulation analyses are carried out for the country: (i) productivity-driven crop diversification with export focus, (ii) promotion of exports of processed foods through increased productivity in processing and decreased trade costs, and (iii) a combined policy approach with upstream, downstream policies, and fiscal expansion with no effects on prices and employment. Simulation outcome indicates that there exist varying degrees of effects, and these include: crop diversification with positive effects of +0.8%, +0.6%, and +1.5% in real GDP, household consumption, and agricultural exports, respectively, with minimal spillovers outside the agricultural sector. Agro-processing for exports has further strengthened the effects and outcomes, with positive effects of +2.1%, +1.7%, and +5.2% in industry, services, and exports of processed foods, respectively. The combined policies provide balanced and largest effects of +2.6%, +6.8%, and +2.0% in real GDP, total exports, and household consumption, with expansion in the agriculture, industry, and services sectors, without affecting prices and employment opportunities. The analysis provides quantitative support for India’s policy related schemes like millet missions, PM Kisan SAMPADA Yojana and agri-export clusters, offering policy-relevant insights for agrarian economies seeking sustainable and export-led growth.


Resource Details () GTAP Keywords
Category: Other CGE Application
Status: Not published
By/In:
Date:
Version:
Created: B, K. (4/15/2026)
Updated: Batta, G. (4/27/2026)
Visits: 33
- Agricultural policies
- Economic development
- Partial and general equilibrium models
- Asia (South-Central)


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