Trade Potential of the Fishery Sector: Evidence from India

The contribution of fisheries sector to Indian merchandise trade and to world fishery trade is substantial. The items traded have gained reputation over the years which will help to keep the momentum of growth in the future. However, the imposition of food safety standards may blur its performance especially in the case of developing countries including India. Thus the whole question of comparative cost advantage comes into the picture of this dynamic trading system. The items traded enter the market in some processed form and the comparative advantage may be taken as an indicator to see whether India could continue with export specialization in this sector. The paper tries to see the revealed comparative advantage of India of this sector with its competitors, the intense trade relationship with its partners and the direction of trade in the WTO framework. The analysis suggests that India is comparatively in an advantageous position compared to its competitors. Furthermore, the changing food standards for enhancing quality content have not affected its competitiveness. Undeniably, the industry has undergone a structural change which equipped the sector to maintain its consistency and competency in the global fishery trade.