Revealed Comparative Advantage and Export Intensity Analysis of India’s Agricultural Trade with EU27: A Product Level Study

This study evaluates India’s agricultural export competitiveness with the EU27 using product level trade data (HS 6 digit) from 2009–2024. We employ Balassa’s Revealed Comparative Advantage (RCA) index and the Export Intensity Index (EII) to identify comparative advantages and export orientation, respectively. Symmetric transformations of these indices (SRCA and SEII) are applied to facilitate quadrant-based diagnostics of trade performance. The analysis covers 610 agricultural commodities and reveals that only about 105 products approximately 17% exhibit an average RCA greater than 1 (indicating global comparative advantage), while merely 56 products (9% Approx.) show an average EII lesser than 1 (implying above average export intensity to the EU). Notably, very few items (27, 4% Approx.) score above 1 on both indices, underscoring a narrow intersection of high competitiveness and strong EU market penetration. India’s top RCA commodities – for example, castor oil (HS 151530) and turmeric (HS 091030) with exceptionally high RCA values (77 and 53) often have underwhelming EII (0.84 and 0.66, respectively), signalling untapped export potential in the EU market. In contrast, certain niche products like ossein (animal bone concentrate, HS 050610) and sesamum seeds (HS 120740) translate their strong RCA into high EII (e.g. EII greater than 1), exemplifying optimal alignment of comparative advantage with EU orientation. The majority of the products, however, fall into a low RCA, low EII quadrant, indicating limited competitiveness and engagement in EU agri goods trade. These findings highlight substantial scope for India to enhance its trade competitiveness with the EU by leveraging high RCA products and addressing market access barriers that impede the realization of comparative advantage. Aligning export strategy with revealed strengths through product specific support, quality compliance, and favourable trade negotiations is crucial for capitalizing on India’s competitive niches and should inform India–EU FTA discussions on SPS harmonization, Geographical Indication (GI) protection, and certification standards.