Using the data below, evaluate how trade liberalization since 1991 has affected India's agricultural export earnings. In 1990-91, agricultural exports were $₹1,200$ crore, and by 2015-16 they grew to $₹7,800$ crore. Discuss the role of reduced import duties, export subsidies, and market access in this change.

Step-by-step solution

1. Record the export earnings for 1990-91 ($₹1,200$ crore) and 2015-16 ($₹7,800$ crore) (why).
2. Calculate the absolute increase: $7,800-1,200=6,600$ crore (why).
3. Compute the percentage increase: $\frac{6,600}{1,200}\times 100=550\%$ (why).
4. Explain that trade liberalisation lowered import duties on inputs, provided export subsidies, and opened new international markets, enhancing competitiveness (why).
5. Conclude that these reforms collectively produced a $550\%$ rise in agricultural export earnings (why).

Concept tested: Impact of trade liberalisation on agri exports

Published 1 October 2026 · How this solution was prepared and checked