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Analysis of Performance and Compititiveness of Indian Fish Export to
Japan |
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| Paper Id :
18249 Submission Date :
2023-11-11 Acceptance Date :
2023-11-17 Publication Date :
2023-11-25
This is an open-access research paper/article distributed under the terms of the Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. DOI:10.5281/zenodo.10203478 For verification of this paper, please visit on
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| Abstract |
Japan is a significant export market for Indian fish
commodities, particularly for crustaceans. This study examines the export
performance and competitiveness of Indian fish exports to Japan using data from
the UNCOMTRADE statistical database (2000–2022). Trade balance and percentage
share analysis has been conducted to analyse the performance of Indian Fish
Export to Japan. Revealed Comparative Analysis (RCA) has been used for the
analysis of competitiveness of Indian fish products in the market of Japan. The
net trade for Indian fish exports to Japan was positive, and the exports have
always been significantly higher than the imports. According to the percentage
share analysis, crustaceans (75.38%) have the highest value share of exports in
2022, followed by fish fillets and other fish meat (22.24%), and molluscs
(2.32%). Computation of Revealed Comparative Advantage (RCA) at Commodity level
indicates that crustaceans have the highest average RCA (17.63), followed by
fish fillets (3.17), and molluscs (3.17). Thus, it shows that India has a
comparative advantage in exporting these items to Japan. |
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| Keywords | Fish Products, Fish Exports, Growth, Comparative Advantage. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Introduction | Fishing
sector has an significant role in the Economy. Fishes are a great source of
nutrition, proteins and vitamins which are useful for the development of the
human body. They also yield a good number of By-products like fish oil, fish
meal, fish glue and fertilizers etc which are used in paints, oils, medicines
etc having commercial value makes them tradable all over the world, thus
contributing to the GDP, Employment generation, domestic and foreign earnings.
Fish is the 2nd largest exported commodity of India after cereals in
agriculture export. As
per the (2021)Report of Department of Fisheries, Animal Husbandry and
DairyIndia ranks 3rd globally in the production of marine fish products with
the contribution of 7.96% in global production. India is the 2nd largest
producer of fish through aquaculture next only to China. The total fish
production during FY 2022-23 is estimated at 16.25 MMT. The average growth rate
of each year in the last 5 years has been 7%. The percentage share of fishing
sector in total GVA in 2022-23 was 1.09% and at constant price it was estimated
at Rs. 1,37,716 Crand 6.72 percent of agricultural GVA.The Country has a long
coastline of 8,118 km. Andhra Pradesh (42.19 lakh tonnes) is at the top
position, followed by West Bengal (16.51 lakh tonnes) in inland fish production
and Bihar (7.6 lakh tonnes).
During
FY 2021-22, marine products export was of 1.37 million MT of value Rs. 57,586.5
Cr (US$ 7.76 billion) with an impressive average annual growth rate of about
10% in recent years. USA is the largest importer from a long time of seafood
products of India with a value of USD 3371.66 mill.having share of
43.45%.Various types of products have been exported by India like live fish,
frozen fish, cuttle fish, dried items etc. India’s largest destination for
fisheries exports are United States, China, Japan, Vietnam, and Thailand.
Source: website of Ministry of commerce and trade In 2022-23 Japan is the 14th largest trading partner of India.In the recent years, the Economic relationship between India and Japan has expanded. The trade between both the countries has existed since6thcentury. They signed a treaty of peace and relationship on 28th Apr 1952. In 2018 PM Narender Modi visited Japan then both the leaders of India and Japan had committed to functioning towards a “Free and open Indo pacific”. In 2022 PM Modi again visited Japan and the meeting concurred with the same objective. In March 2023 PM Kishida visited India and held Japan-India Summit meeting with PM Modi and confirmed their commitments to work together on issues in the international community in the lead-up to both the G7 and G20 summits and further develop Japan-India relations Majorproducts from India to Japan are organic chemicals, fisheries, nuclear reactors, vehicle, pearls, and minerals. In 2022-2023 fisheries are the 2nd highest exported item to Japan from India after Organic Chemicals. In 2022-23 Japan imported US$443.76. India exports many varieties of fishes like fish live, fish chilled, fish frozen, fish dries, crustaceans, molluscs. The growth of fishery exports has increased. This is quite evident as there has been 2.43% growth in fish export from last yearfrom India to Japan and Fish contribute 8.12% share in total export to Japan by India.Highest exported category is crustaceans (shrimp),which was US$344.38 in 2022-23. |
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| Objective of study | 1.
Analysis the performance of Fisheries products exported from India to Japan.
2.
Analysis of Comparative Advantage of India Fish product exported to Japan for
the selected period. |
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| Review of Literature | A. Suresh et el. (2023) in his article analysed the status, challenges, and the way ahead for Marine Products of India. The researcher has analysed the trend, growth, Diversification of destinations for the period of 1999 -2000 to 2019-20 for achieving the objective. The study concluded that the growth in Marine product export has increased significantly but this growth is not by the increase in unit value but due to increase in volume of frozen shrimp which does not show any value addition. These issues are need to be addressed by technology advancement and skills to produce high value processed products. Ramki R Rajendran (2021) has examined the growth and performance of fisheries exports in the article. The researcher has taken the period of 10 years from 2009-2010 to 2018-2019 and the data has been gathered from the website of MPEDA, GOI, magazine, and other websites related to Economy. The Researcher has used the CAGR % to calculate the growth rateand used statistical tool Regression analysis. The result shows the increase in the sea food export for the period taken for the study. Ubair Nisar (2021) has examined the growth, performance, and competitiveness of fish product of India to China. The Researcher has taken the period of 18 years (2000-2018). The researcher has used the website of UN Comrade for collecting data and to study the composition percentage share analysis has been used and the researcher has conducted the Cuddy Della Valle Index of Instability to analyse the instability. Simpson Index of Diversity (SID) has been used to measure the diversification or concentration of export. The researcher has also used the RCA to study the Advantage of exporting Indian Fish products to China. The analysis showed performance of Indian Fish product export satisfactory. The CAGR showed the increasing trend of exports. The Simpson Index value was higher in all the years as compared to the United States of America and remaining other countries. RCA was found highest for frozen fillets. Crustaceans were the 2nd highest exported commodity and frozen fish was at 3rd place. Ubair Nisar (2020) has conducted a revealed comparative advantage analysis of Fish products of India in the USA market. In this paper the researcher hasexamined the growth, performance, and competitiveness of fish product of India to United States.The Researcher has taken the data of 17 years (2000-2017) from the website of UN Comrade. The Researcher has conducted the percentage share analysis to study the composition of exported fish products and conducted Compound growth rate (CGR) to analyse the trend and cuddy Della Velle Index has been made to study the export instability and RCA is conducted for competitive analysis. The results shows that thefish products export of India in the USA market has a favourable growth during that period. CGR shows that the seafood export grew with least instability of 0.1%. The results also shows that the India enjoys competitiveness in exporting the crustaceans followed by molluscs and frozen fish Satish Kumar M.(2020) has analysed the growth and performance of Marine fish export of India. The researcher has taken the period from 1995-96 to 2014-15. The researcher has analysed the growth, direction, and pattern of export in marine products. To analyse the growth the annual compound growth rate has been calculated for the study period. to analyse the direction and pattern of export first order finite Markov Chain model has been employed, the results showed an increasing trend in marine export. the analysis of direction of trade showed that China and South East are the largest Importer of Indian fish products. Radha Krishnan (2019) has analysedthe growth and performance of export of fish products of India. The study is conducted for five decades from 1961 to 2012 divided in to five parts, each part containing the period of 10 years. The Researcher has collected the data from the website of MPEDA, GOI. The growth in export has been calculated by using Compound Annual Growth rate (CAGR). To find the instability the researcher has used Cuddy Della Valle Index (CDVI). The results showed that the growth rate of seafood exports has been decreased in terms of export value, quantity exported andeach products unit value and the instability also declined. But during the 1990s the fish products export increased due totrade Liberalization. Nalini Ranjan Kumar (2016) has analysed has examined the growth, performance, and competitiveness of fish product of India European union. The researcher has collected the data from the website of UN Comtrade of the UN for 14 years i.e., 2000-2014. To analyse the performance the researcher has used RCA and each products unit value realization and percentage share of each commodity in total export. The researcher found that live fish realised the highest unit value and fish cured and smoked &crustaceans stood at second and third place respectively. The RCA results revealed that India is having advantage in the export of crustaceans and molluscs and on the other hand India has not any comparative advantage in exporting fish frozen, fish chilled, fish fillets and live fish. |
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| Methodology | Type of study - The study is Descriptive and analytical in nature. Data Type - Present study is purely based on Secondary Data. Data Collection - The data is collected from the website of UN Comtrade statistical data base of the United Nation and Ministry of commerce and trade of GOI. Period of study - 22 years Data has been used for the study i.e. 2001-2022 Scope of the study- The study covers only the export of fish products to Japan. For the analysis purpose fish products at 4-digit level under HS code 03 (Fish and crustaceans) have been covered. The list of products taken for the study is given below
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| Analysis | To analyse the export performance, trade balance and the share of eachproduct in totalexport of fish products inJapanhas been calculated.Revealed comparative advantage has been used to analyse the competitiveness of fish products to Japan Share of each fish products in total export to Japan=
Export of fish (Item wise) to Japan from India during nth year ___________________________________________________ X100 Total fisheries export from India during nth year Revealed Comparative advantage –The RCA is use to analyse the comparative Advantage of Fish product’s export in Japan. Revealed Comparative Advantage Indian fish export to Japan /total export of India to Japan = __________________________________________________ World fish export to Japan /World total export to Japan If RCA is >1,then the Country has RCA in exporting that commodity If RCA is<1, then the Country has not any comparative advantage in exporting that commodity. If RCA is =1 neutral |
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| Result and Discussion |
Trade balance Trade balance is the excess of export over import
or vice versa. It is indicated by the Table 1 that the trade balance of fish
export of India to Japan remainspositive in all the years. Indiapurchases fish
from Japan but the value of import is very low in amount as compare to exported
valuerepresenting that India is achief exporter of fish to Japan. But from 2001
to 2009 the export of fish from India to Japan has almost decreased by 2 times
i.e., in 2001 the export was US$381,291,394 and in 2009 it was US$187,777,700.
But after that the exports get increased after 2009 to 2014 almost by 2.3 times
then decreases for next 2 years than increased in 2017. But after 2017 the
export is continuously decreases till 2020. India exports the fish highest ever
in 2021 of $444,525,065.On the other
hand the purchase of fishes from Japan has increased by 277.8 times but the
import is very less as compare to export.
Source: website
of UN Comtrade Percentage share and composition
of different fish products in total fish exported from India to Japan The exports of major fish products from 2001 to
2022 are shown in Table 2. The fish products have been categorized as
live, fried chilled, frozen, frozen fillet meat mince, fish cured smoked fish
meal, crustaceans, and molluscs.In terms of value, fish exports increased
significantly. By examining the share of specific products in overall Indian
fish exports to Japan, it is discovered that crustaceans (90.63%) were the most
valuable exporting commodities in 2001-02. Frozen fish (5.72%), followed by
molluscs (1.75%), is in third position. Crustaceans are an important commodity
in exports, but their percentage share has declined dramatically as it is
decreased from 2001 (90.63%) to 2002 (85.14 %) respectively. Later the export
of crustaceans increased in 2004 to 91.22% and then starting decreasing from
2004 to 2008 (84.32%). Its % share in total export in 2008 was 81.69%. Now it
is getting decreased almost in 2022 to 75.28% but still is the major exported
category. The second-largest exporting commodity is frozen fish whose export
percentage share grew in next 2 years from 5.72% to 8.91 % to 8.99 %
respectively and then decreased in 2004 to3.37% and in 2007 its export was
highest ever 10.25% ,the export get almost deceased to zero in 2022. And the
third major product molluscs also increased in 2002 and 2003 to 2.43% and 3.13%
respectivelyand then decreased in 2004. It again increased till 2006 to 5.97%
highest ever. Then started decreasing and in 2022 its value was 2.32%. In 2022
the major share of export were crustaceans (75.38 %) followed by fish fillets
and other fish meat (22.24%), molluscs (2.32%).
Source: researcher’s calculation based on the database of
UN Comtrade Revealed Comparative Advantage of
export of fish to Japan Tables 3 and 4 shows the RCA of Indian fish
exports, respectively. The RCA has been greater than the unity in crustaceans,
fish fillets, and molluscs to Japan, as shown in the Table. The export share of
live fish, fresh fish, frozen fish, and dried fish is lower, which could lead
to the lower RCA. The principal market for these products is
the developing countries where consumers choose these low-value fish. The
average RCA for fish fillets, crustaceans, and molluscs was positive,
indicating the comparative advantage in exporting these
commodities. As shrimp production in India is increasing
per year more effort and attention is required to boost shrimp export
with adequate value addition that can fetch higher prices in
international markets. MPEDA sponsors several financial incentive
programmes to help in export promotion and market development of fish
products. Indian seafood export performance has showed significant growth,
particularly when exporting to high-demand countries such as Japan. Amongst all
the seafood items exported crustaceans contributed the highest share as the
Japan is developed country. The export competitiveness highlighted the need for
policy actions to sustain export over time by implementing suitable sanitary
and postharvest steps to ensure the high-quality fish export. India is more
competitive in the export of crustaceans (shrimp) which was highest in 2020
(24.57) and in 2022 it was 17.63. The RCA for fish fillets was less than unity
from 2001 to 2009 after that it becomes positive shows the comparative
advantage
Source:
researcher’s calculation based on the database of UN Comtrade |
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| Conclusion |
Fish is a cost effective and rich source of protein and
nutrition. And, the healthiest option to mitigate hunger. The sector has very
much potential to double its exports. Indian seafood exports have increased
significantly, particularly when going to markets with high demand like Japan.
Among all seafood commodities exported, crustaceans contributed the most
because Japan is a developed country with a high profile and wealthy people who
consume shrimp. The export competitiveness highlighted the need for policy
actions to sustain export over time by implementing suitable sanitary and
post-harvest steps to ensure the export of high-quality fish. Because
India is more competitive in the export of crustaceans (shrimp and lobster),
there is a need to maintain processing standards and adhere to HACCP
protocols. And there is also need to increase the other categories (like live
fish, fresh fish) export and share also by capturing the untapped markets. |
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