International Food Safety Standards and India’s Food Exports: An Analysis Based on Gravity Model Using Three-Dimensional Data

Rajesh Mehta
JEL codes: 
RIS-DP # 169

The paper tries to understand precisely how the food safety regulations applied by the industrialized countries have an effect on Indias export of processed food to these markets. It also examines the information deficiencies of Indian firms about international food safety standards, which influence their current performance. In the light of these objectives the paper tests a few hypotheses using primary data. This has been carried out by estimating gravity model using three-dimensional statistics. Our results show that India stood to loose around 156 per cent of actual exports because of higher stringent food safe regulations in select developed countries. It also proves that foreign collaborators provide better information about the prevailing food safety regulations and how to meet those obligations.