basmati rice Exports Contribute to Economic Growth

How Basmati Rice Exports Contribute To Economic Growth

by

Table of Contents

Indian Basmati Rice is one of the most famous grains across the globe. It holds a large number of contributions to the Indian economy. In this article, we are going to discuss how basmati rice exports contribute to the economic growth of the country.

Agricultural commodities influence market and country economic development. On an average, half of the population relies on agriculture. It is a principal source of employment for many, also the primary source of domestic income of the country.

Let’s look into the aspects that affect the economic development of a country.

How Economic Development Takes Place:

The process of a country’s economic growth is time taking. Economic growth is termed to describe the change or modification in a country’s economy that includes; qualitative & quantitative improvement. 

After World War II, the era of colonialism was demolished to a great extent. Thus, the development of the economy has become a major concern for every country. So far now, there is no such definition of what a developed country looks like. Neither any complete process that helps the economy to grow. 

Till now, many countries have been added to the developed country list. And some are still developing. 

Let’s move further by looking into the importance of economic development in a country.

Importance For Economic Development:

Development is directly connected to growth and if a country grows, it directly affects the population. The developed country has so many facilities for its people to provide. Things seem to be aligned together.

On a larger scale, we are going to talk about the top five reasons why the country’s development is an important aspect.

  1. Government must be ready to provide service to the people. It is possible through generating revenue.
  1. It directly impacts employment. The development could process effectively, the job opportunities must grow and that will reflect investment within the country itself.
  1. In order to expand the businesses to give employment to people. They make money, and will pay taxes that eventually leads to wealth increasing. 
  1. Economic development largely helps in protecting the local economic turns and problems. It is possible to do so by expanding employers.
  1. All these things lead the government towards providing a better life to the community to live. 

How Basmati Rice Exports Contributes To Economic Growth

There are various kinds of factors that affect the economic growth of the country. All are seemingly interconnected with each other. Largely, the country is dependable for economic development on agriculture.

And, Basmati rice is the leading production grain among others. The exports of this grain contribute to a great extent in national income. 

Even so, India holds a leading exporter country position in the global trade market of rice.

Now, let’s dive right into the contribution of rice exports  to economic development;

  • The prominent thing is to look upon the production rates. In the latest year 2021, India has produced over 120 million tons of rice. You might be wondering how the production rates are connected to economic growth.
  • To export more rice to many countries, India needs more production of rice grains. The more Indian states produce rice varieties, the more it exports to other countries. For the production, it requires manpower and hence it is integrally helpful in providing employment.
  • Employment directly has a connection with economic development of the country. The employment to the large population of the country, increases the domestic demands for goods and services. It overall helps in growth of the country itself.
  • Healthy economy believes to have both imports and exports flow to see a growth of the country. It boosts the economy and GDP.

These are the major things affecting the country ‘s economic development to a great extent.

Production Of Rice In India:

The farmers of India, are highly dedicated towards farming and production of the grains. Also, throughout their life, they are vulnerable to both production and market risks. The huge area of Indian states’ are devoted to Basmati rice production. 

Over the centuries, it has  been one of the staple food items among the world. Considerably, a major source of intake of calories. In other words, the best source of high nutrition and helpful in keeping the human body healthy. 

Production of rice takes place through many methods. These different methods vary upon the varieties of rice. Individually, India grows 34 varieties that are identified under the Seeds Act, 1966. 

As per previous records, in the year 1993-94, rice crops produced around 528 million tons on an average globally. These records of production are growing day by day due to the high popularity of the grain. 

Concluding Thoughts:

The rice exporters of India, led the country to attain the position as the second largest  country of rice exports. It has exported around 17.7 million tons in the year 2020-21. Specifically, the basmati rice exports have doubled in comparison to the 2019 year.

Throughout the years, new buyers continually added to the importers’ list of India. However, Saudi Arabia, UAE, Iran, still are the main destinations for the Indian basmati rice exports.

Leave a Comment