CHAPTER-4 ASSESSING THE COMPETITIVENESS

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1 CHAPTER-4 ASSESSING THE COMPETITIVENESS 4.1 Introduction In the previous chapter, data analysis for construct validity, and use of statistical techniques for analysis of the data collected through questionnaire were highlighted. The factors, which are contributing in the real term for accessing the competitiveness, export growth were identified by using the factor analysis. Also secondary data were used to analyze the competitiveness, and finding the global status and opportunity to enhance the market share. Moreover, a further insight was provided into understanding the different issues (like competition, price, experience of export, import duties, custom procedures, NTB barriers, threats, strengths and FDI inflow) related to the marine shrimps/prawns global exporting. In this chapter, univariate, bivariate and multivariate analysis was used for making simultaneous measurements on many variables. The multivariate statistical techniques, correlation and regression were used to hypothesis testing for this study. 4.2 Why People Like Indian Shrimps/Prawns India s 99% of shrimp/prawn export is based on a single product, the black tiger prawn. Indian shrimps/prawns preferred over other marine products because of it s larger size, sweeter and delicious test. The Indian shrimps/prawns have a global image for organic composition (Indian exporters view, as it captured for natural resources). Also the exporters maintaining the freshness, hygienic with the use of the advance technology like IQF and have a legal certificate, which adds value on the Indian tiger prawn. Table 4.1 clearly shows that, there is a high demand for the 93

2 Indian marine shrimps/prawn, though the white tiger prawns are lower cost and easily available. The main strength of Indian marine shrimps/prawns is organic, large size, hygienic, fresh and has a better taste then the other species. Besides that it also has the vitamins, mineral and omega-3 fatty acid like other species of prawn. As it is a costly product, it is meant for all top hotels and restaurants and also the sophisticated people who can able to buy the consumer packet. The main target is the wholesaler and retailers. Table 4.1: World Rank of Indian Marine Frozen Shrimps/Prawns Global Destinated Markets Rank (Trade Value) UAE, S.Africa and Kuwait 1 Vietnam 9 EU-25, 2 Canada and Japan, 4 USA, China and Egypt 6 Source: COMTRADE, Access from WITS (June 2011) 4.3 Competitiveness of Indian Product Competitors of India in International Market Table 4.2 below indicates India s major export markets for shrimps/prawns in world. The first column in the table shows India s major export markets for shrimps/prawns (HS Code ). And the ranking has been made on the basis of relative position in the respective market in terms of export value, whereas the competitiveness has been considering on the basis of Unit Value Realization. The Unit Value has given in $ 000 per kg. India s position is on top for UEA, Kuwait and South Africa. Similarly in EU market India ranked second. Whereas for USA, China and Egypt Arab rep., India ranks sixth. The unit value of India for China market is higher (9.91 $ 000/kg) though its position is in sixth. The observation of the analysis shows that for the 94

3 Table 4.2: Competitors of India in the India s Major Exporting Market Marine Shrimps/Prawns (Trade Value, 000 $) Competitors Rank EU-25 Japan Canada China USA S. Africa United Arab Emirates# Egypt, Arab Rep.# Kuwait World Ecuador India Argentina Bangladesh Vietnam Value UVR World Vietnam Indonesia Thailand India China Value UVR World Thailand Vietnam China India Ecuador Value UVR World Canada Greenland EU25 Thailand Mexico India Value UVR World Thailand Indonesia Mexico Ecuador Vietnam India Value UVR World India Thailand Mozambique Malaysia Honduras Value UVR World India Pakistan Iran Myanmar Vietnam Value UVR World China Pakistan Saudi Arabia Vietnam UAE India Value UVR World India Vietnam UAE China Iran, Value UVR World China Denmark Saudi Arabia Japan UK India* Value Vietnam# UVR *- India s position is in 9 th, #- The data used are from 2008, as 2009 data is not available Source: WITS, COMTRADE (2011) maximum country, the Unit Value Realization of Vietnam is very high as compare to the other competitors including India in these top ten exporting markets of India. That means the competitiveness of India for this product has to be improved to get sustainability in market Competitiveness of Indian Marine Shrimps/Prawns in International Market 95

4 Measures of revealed comparative advantage (RCA) have been used to help assess a country s export potential. If RCAij >1, it indicates that this kind of commodity has the revealed comparative advantage in the country or region, otherwise, the formula RCAij <1 indicates that commodity has not the revealed comparative advantage in the country or region. Generally speaking, on the current international standards, RCAij >2.5 means more strong revealed comparative advantage, 2.5>RCAij >1.25 means strong revealed comparative advantage, 1.25>RCAij >0.8 means less strong revealed comparative advantage, and RCAij <0.8 means weak revealed comparative advantage (Gong, X. and Gu, C., 2011). Table 4.3 India's Competitiveness in World Market Year Revealed Comparative Advantage (RCA) Source: WITS COMTRADE (2011) India s RCA for marine shrimps/prawns product has given Table 4.3. The trend of RCA for this product from the year 1998 to year 2007 has been gradually decreasing. This proves the competitiveness of Indian marine shrimps/prawns sector became decreasing over the period since a decade. 4.4 Extraction Method: Principal Component Analysis The analysis of this chapter involved the macro variables like, advertisement and promotion, major constrains, import procedure, duty barriers, customs procedure, 96

5 past experience in export, NTBs and FDI Inflow. All the above given variables having micro variables within them. The variable number of questionnaire construction has given (Table 4. 4). The number of variables reduced through the factorization method. The details of the analysis have given in Appendix VIII. Factor analysis is a useful method of reducing data complexities by reducing a number of variables into few factors by grouping the variables within each factor that are highly correlated with variables in that factor than with variables in other factors. It is an empirical way of reducing a clumsy mass of variables into a manageable few. The factor extraction was done using Principle Component Analysis. The objective was to identify the number of factors that can be extracted from the data. Also, the computation of an Eigen value or variance was used for retaining the factor. The higher the Eigen value of a factor, the higher is the amount of variance explained by the factor. Factors having Eigen value greater than 1.0 are considered significant and all other factors with Eigen value less than 1.0 are considered insignificant and disregarded; so only those factors having an Eigen value of 1.0 or more were considered. In the second stage, a loading factor for the item was obtained through Varimax with Kaiser Normalization method. Items with a loading factor of above 0.4 were included. A detail of factorization analysis has given in Appendix IX Confirmatory Factor Analysis for Macro Variables The confirmatory factor analysis for the macro variables, advertisement and promotion, public relation, major constrains, import procedure, duty barriers, customs procedure, past experience in export, NTBs and FDI Inflow had carried out. The cumulative percentage of the loadings for the four macro variables, ranged from 50 97

6 to 86 per cent. Some of the question-statements were excluded from the constructs in the factor analysis. From the macro variables, these question-statements were dropped out from further analysis. The detailed findings for macro variables, has given in Appendix IX. The summary of the factor analysis has given in Table 4.4. Table 4.4 Confirmatory Factor Analysis for Macro and Micro Variables Macro Variable Public relation Advertisement and Promotion Major Constrains Micro Variables Confirmed by Factor Analysis Industry website, product details and registered with any trade directory/website Trade show, buyer seller meeting, number of trade certificates and brand name Competitiveness in domestic market Price Constrains Product Status in Market Variable Numbers involved in Factor Analysis Cumulative Percentage of the Loadings 2,3 & ,5,7& b &12c a,12d, 12e & 12f 12f & 12g Import Procedure Barriers 13a,13b &13c Duty Barriers Safe Guard Charges 13d,14a,14b,14d & 14e Customs Procedure Past Experience in Export Charges on Product Standard 13d, 14c &14e Customs Procedure 15a,15b & 15c Safety Standard Barrier 16a & 16b Experience in Export 18a, 18b & 18c NTBs NTBs 19a,19b & 19c FDI Inflow Investment Environment 25b & 25e Product Prominence 25a &25d 4.5 Competition in Domestic Market of India for Export Table 4.5, gives a clear idea about the domestic market competition for exporting of shrimp/prawn product to global market. The unit value sells for company like Nekkanti Sea Foods Ltd. and Waterbase Ltd. is very high where as for Koluthara Exports Ltd. and Uniroyal Marine Exports Ltd. it is very low. It shows the competition 98

7 within the country market for exporting this product is very high. This is one of the negative sign to establish the product in the international market as well as for getting higher Unit Value Realization (UVR). There is need of Governments intervention to regulate the export price of Indian exporters in the marine shrimps/prawns products. Table 4.5: Competition in Internal Market of India Company Name Product/Raw Material name Production (Tonnes) Unit value of sales (Dollar/Tonne) Nekkanti Sea Foods Ltd. Shrimps Waterbase Ltd. Prawns Asvini Fisheries Ltd. Shrimps Sharat Industries Ltd. Shrimps Sowbhagya Media Ltd. Shrimps Koluthara Exports Ltd. Shrimps Uniroyal Marine Exports Ltd. Shrimp Source: Prowess Univariate Statistical Analysis for Micro Variable Contributing in Competition in Domestic Market The univariate statistical analysis on micro variables for the domestic competition has given in Table 4.6. The mean and median values have very little difference between each other. In the case of micro variable competition, standard deviation is very low. A low value of standard deviation of micro variables indicated that the executive s opinions were consistent and can be relied upon. Table 4.6: Univariate Statistical Analysis for Competition in Domestic Market Statistics N Valid Missing Mean Std. Error of Mean Median Std. Deviation Variance Range Minimum Maximum 99

8 Erratic-demand 10 1 Competition 10 1 Low-ex-price 10 1 Price-Fluctuation 10 1 Lack of knowledge Correlation Analysis between the Micro Variables Contributing in Domestic Market Competition The five micro variables, Viz, erratic demand, competition, low export price, price fluctuation and lack of knowledge, were correlated using the Pearson correlation two-tailed test for the total sample of (N=101) exporters covering a major part of the frozen shrimps/prawns exporting. The results of the correlation analysis are presented in Table 4.7. There is a significant positive relationship, at 99 percent confidence level, between the variables, low export price (0.306 ** ), price fluctuation (0.336 ** ) and lack of knowledge (0.376 ** ) with erratic demand. Similarly price fluctuation is highly significantly related to low export price (0.730 ** ) and significant correlated to lack of knowledge. Low export price also significantly related to lack of knowledge (.296 ** ). Variables- low export price, price fluctuation and lack of knowledge positively correlated with competitiveness of the domestic market. But competitiveness of the domestic market is highly significantly correlated with competition in the domestic market (.474 **) and erratic demand (.926 ** ). From this analysis it shows that the low export price, price fluctuation an erratic demand basically due to lack of knowledge. But the key variables which contribute in the competitiveness in domestic market are erratic-demand and competition among the Indian exporters. 100

9 Table 4.7Correlation between the Micro Variables Competitiveness in domestic market Correlations (N=101) Erratic demand Competitivenes s in domestic market 1 Erratic-demand.926 ** 1 Competition Low Export price Price Fluctuation Lack of knowledge Competition.474 ** Low-ex-price.237 *.306 ** Price Fluctuation.295 **.336 ** ** 1 Lack of knowledge.344 **.376 ** **.348 ** 1 **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed) Competing Internal Areas for betterment of Exporting Shrimps/Prawns to International Market Hypotheses of association were tested and validated through the statistical technique of multivariate analysis, i.e. regression analysis. This is one of the way to testing the competitiveness of Indian frozen shrimps/prawns (HS Code ). While testing the models, the correlation between the micro variables was run to verify the significance. Then the macro variable, which depend upon these micro variables were considered for regression. In cases where more than one variable was regressed, step-wise regression was used. If, on the other hand, there was only one variable under consideration for regression, analysis was done through the enter method of regression. Regression Analysis The first predictor for Competitiveness in domestic market is erratic-demand, which enters the model with a R 2 value of.857. The next major predictor was competition in the domestic market as shown in Table 4.8 (a). The two variables put together 101

10 explain 100 percent. The ANOVA values for the regression model are shown in Table 4.8(b) indicating validation at 99 percent confidence level. Table 4.8(a) Macro Variable: Model Summary for Competitiveness in Domestic Market as Dependent Variable Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate a b a. Predictors: (Constant), Erratic-demand b. Predictors: (Constant), Erratic-demand, Competition Table 4.8 (b) ANOVA for Competitiveness in Domestic Market as Dependent Variable Model ANOVA c Sum of Squares df Mean Square F Sig. 1 Regression a Residual Total Regression b Residual Total a. Predictors: (Constant), Erratic-demand b. Predictors: (Constant), Erratic-demand, Competition c. Dependent Variable: Competitiveness in domestic market The coefficient summary as is shown in Table 4.8(c) gives the Beta ( ) value of erratic-demand and competition as and 0.38 respectively, representing the impact on Competitiveness in domestic market. Thus, erratic-demand is the main variable directly influencing Competitiveness in domestic market. 102

11 Table 4.8 (c) Coefficient Summary for Competitiveness in Domestic Market as Dependent Variable Model Coefficients a Unstandardized Coefficients Standardized Coefficients B Std. Error Beta 1 (Constant) Erratic-demand (Constant) Erratic-demand Competition a. Dependent Variable: Competitiveness in domestic market t Sig. The regression equation is written as Y = + X 1 + X 2 + X n X n +e Therefore Y (Domestic Market Competition) = (Erratic demand) (Competition) 4.6 Export Growth Status of Indian Frozen Shrimps/Prawns The sustainability of Indian shrimps/prawns exported in the international market became a biggest task, though exporters are getting a good profit, which shown in the Table 4.9. The exporting of shrimps/prawns from India is going to decrease gradually from to As per the MPEDA the India s major exporting is going to EU, China, Japan and USA. The export down fall is basically due to the USA market, related to the antidumping duty (Joseph G., 2009). Not only the quality term, Indian exporters start to facing problem in all expects, like trade value and unit value also. 103

12 Table 4.9 Export of Marine Shrimps/Prawns from India ITEMS % Share to Total Growth (%) Frozen Shrimp 22 Q V $ UV$ ITEM % Share to Total Growth (%) Frozen Shrimp 21 Q V: $: UV$: ITEM Share % Growth (%) Frozen Shrimp Q: V: $: UV$: Q: Quantity in MT, V: Value Rs. Crore, $: US Dollar in Million, UV$: Unit Value in Dollar Source: MPEDA (2011) 4.7 Factors Contributing in Export Growth Univariate Statistical Analysis Contributing in Export Growth The univariate statistical analysis on macro variables for the domestic competition has given in Table Similar to the micro, the mean and median values of macro variables were also very little difference between each other. In the case of export growth status, for maximum micro variables the standard deviation is very low. A low value of standard deviation of micro variables indicated that the executive s opinions were consistent and can be relied upon. As opposed to this the standard deviation for the variables- price constrains, threat by cheap-prawn, experience of RoO and FTA needs were high which indicated that the group was operating at different levels of performances with regard to these variables. 104

13 Table 4.10: Univariate Statistical Analysis for Macro Variables S.E of Mean Mean Median S.D Range Minimum Maximum Turn over m cr Public relation A & P Total ex country Year-Ex Competitiveness in domestic market Price Constrains Product Status in Market Import barrier Duty barrier Product standards Custom procedure Safety standards Export exp NTB Threat by cheap-prawn Exp. Of RoO FTA needs FDI-inflow Joint Venture profit Investment environment Product prominancy Product standards Correlation of Macro and Micro Variables Contributing in Export Growth All the macro variables were correlated using the Pearson correlation test for the sample of 101 responses. The results obtained by the test are shown in the Table Correlation values are negatively significant between turnover and the variable- year of exporting, product status in market, safety standard, export experience, price constrains, export experience and FTA needs (95 percent) 105

14 whereas with threat by cheap-prawns (99 percent). The correlation between turnover and threat by cheap prawns highly negatively significant ( ** ), that mean this is one of the major threat for Indian exporter in the international market. Similarly the correlation value for turnover is highly significant with brand name (.490 ** ) and advertisement and promotion (.490**). This means the turnover of a firm is drived by effective advertisement and promotion activity and product selling under brand name. Advertisement and Promotional activity (A & P) is significantly correlated with brand name (.533**). Similarly the correlation is significant between advertisement and promotion and total exporting country (.427 ** ). That shows advertisement and promotional activity is an important tool to promote the product in the international market. The correlation between year of exporting and year of exporting is significantly negative correlation with product status in market ( ** ) and import barrier ( ** ). The competitiveness in domestic market is significantly correlated with product status in market, threat by cheap prawn and FTA needs, but highly significantly correlated with price constraint (.584 ** ). From this result it seems that pricing strategy is very important factor to compete in the world market. There is a need of maintaining the quality through value addition. Price constrains is significantly correlated with the variables- export experience, threat by cheap-prawn (.279 ** ) and FTA need (.280 ** ).Where as price constraint is highly significantly correlated with product status in market (.683 ** ). So results shows 106

15 as the turnover reduces due to the above three variable, the price constraint also increases because of these three variable. Import barrier is negatively correlated with the custom procedure ( * ) i.e., in 95 percent level. Custom procedure is significantly correlated with export experience as well as with the experience of rules of origin (.261 ** ). That shows there is some cumbersion in the custom procedure, which is impacting in exporting directly or indirectly 5. Duty barrier is highly significantly correlated with the variable product standard (.695 ** ). Where as negatively correlated with custom procedure and experience of RoO in 95 percent confidence level. Export experience is significantly correlated with the variables- custom procedure (.202 * ) and threat by cheap-prawn (.198 * ). According to the literature review as well as the responses of the exporter the cheap-prawn (Vienamie 6 prawns) is a threat for the Indian shrimps/prawns exporter. Similarly the threat by cheap prawns is significantly correlated with FTA (.331 ** ). So the results shows that FTA is one of the ways to make cheap prawns to entered in the India market, which will dilute the quality of the Indian shrimps/prawns. The policy maker should be take extra care to go for the FTA with the concern country (from those countries, India expecting a threat of lower quality product dumping). 5 According to the exporters, custom clearance is very time taking procedure, the change of rules in the procedure is not informed in time and due to time lingering the properties of the product loss, which again create other problem with the quality. According to Government (Custom Service Dept.) for seafood products the custom clearance producer is taking 3 to 4 days maximum. All the procedures and requirements are given properly in Govt. web site. So it seems the exporters need a training to handle these issues and it should be provided by the Government through some custom management develop programme or by similar activity. After the feedback of concern officer, the study was also checked from the web site. 6 Vietnam s cultured white prawn, which is chief in price, and maximum imported by USA. 107

16 4.11 Table Correlation between the Factors Contributing in Export (N=101) Turn over m cr Brand Name Public relation A&P Total Export country Year-Export Competitive ness in domestic market Turn over m cr 1 Brand Name.424 ** 1 Public relation A & P.490 **.533 **.233 * 1 Total ex country ** 1 Year-Ex ** * Competitiveness in domestic market Price Constrains * ** 1 Product Status **.367 **.683 ** 1 Import barrier.238 * * Duty barrier ** ** Product standards * * ** 1 Custom procedure * Safety standards * * * Price Constrains Product Status in Market Export exp ** * * threat by Cheapprawn ** ** ** *.293 **.223 * * 1 FTA needs * *.288 ** ** 1 Exp. Of RoO ** * * ** J-V-profit * * NTB FDI-inflow **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed). Import barrier Duty barrier Product standards Custom procedure Safety standards Export exp threat by Chiefprawn FTA needs Exp. Of RoO J-V-profit NTB FDI-inflow 108

17 Box1: Issues Related to the FTA in Indian Seafood Sector: According to Minister of State for Agriculture K.V.Thomas, India s FTA with the Association of South East Asian Nations (ASEAN) will not adversely affect the country s fisheries sector (Fisheries sector won t be hit by India-ASEAN pact, 2009). The officials of the Ministry of Commerce and Industry are of the view that the India-ASEAN free trade agreement (FTA) safeguards the interests of domestic fishers and farmers. Government organizations support import of fish to re-export. Also studies conducted in this area show that an additional 5 million job opportunities can be created by importing fish for processing in India utilizing the spare capacity. However, it has to be seen that, at the same time the imports would hamper the livelihood of poor fishermen, whose fishing activities will suffer, once fish imports are allowed, even though for reexports in a processed form (Nambudiri,2009). Other concern point is in Thailand and Indonesia; fishing is carried out mainly by big players like corporate and big companies. In India fishing is a livelihood activity carried out mainly by small scale operators using intermediate levels of technology. (Hemalatha,2010). Similarly dumping of ASEAN fish and fish products to our (India) markets may raise serious food safety concerns in the absence of strict food safety standards in our country. India cannot be allowed to become a destination for sea food products that have been rejected by other countries or have inferior quality. At present there is no institutional mechanism to regularly check the import consignments of fish. The procedures for import inspection have to be laid down considering the requirements of handling, processing, packaging and methods for evaluation of quality of products. India lacks competitive advantages in terms of costs and expertise in a range of areas. High productivity and low production cost prevailing in fisheries sector of ASEAN countries is a problem, India have to confront with. Similarly India might suffer from the import of cheap EU fish products. (Singh, 2009 and Powell, 2008) Regression Analysis of Macro and Micro Variables Contributing in Export Growth (Turnover) The hypothesis for factors contributing in export growth were tested through the statically technique of multivariate analysis, i.e. regression analysis. While testing 109

18 the models, those variables were entered for regression where the correlation between the variables was positive and significant and also the variables for which the correlation value was not significant, or significant but negative. As more than one variable were regressed, step-wise regression was used. Here all the positive variables are consider to know the strength of this product and negative and non significant variables are consider to know, where the weakness for this product to export. For regression analysis both macro variables, those are constructed by the combination of micro variable and those not having any micro variables are considered. The regression analysis findings in details for each of the macro variables are covered in Appendix X. The findings of regression analysis for macro variables were conclude using the formula. Both the variables, those are having positive impact on the increase of export turn over and those variables are negatively contributing to the export turn over were consider in the calculation and also the percentage of impact define in a mathematical form. Regression Analysis Turnover as a Dependent Variable The regression model for turnover as a dependent variable is shown in the Table 4.9. The R 2 is 0.501, meaning that 50 percent of the variance in turn over can be predicated by the variables- Advertisement and promotion (A & P), Year-Ex, threat by Cheap-prawn, Price Constrains, Safety standards, Product Status in Market and Custom procedure shown in Table 4.12 (a). The corresponding Beta 110

19 value for the independent variables indicated that A & P and Product status in market are positively correlated with turn over. Where as years in exporting, threat by cheap-prawn, price constrains, safety standards and custom procedure were negatively correlated with turn over (Table (c)). ANOVA, being significant, validated that the independent variables alone significantly predicts the turnover (Table 4.12 (b)). The mathematical calculation for turnover has been presented percentage of the impact of the predicators, by which the importance of that predictor in the context of enhancing export turnover can find out. Table 4.12 (a) Macro Variables: Model Summary for Turnover as a Dependent Variable Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate a b c d e f g a. Predictors: (Constant), A&P b. Predictors: (Constant), A&P, Year in Exporting c. Predictors: (Constant), A&P, Year in Exporting, Threat by Cheap-prawn d. Predictors: (Constant), A&P, Year in Exporting, Threat by Cheap-prawn, Price Constrains e. Predictors: (Constant), A&P, Year in Exporting, Threat by Cheap-prawn, Price Constrains, Safety standards, f. Predictors: (Constant), A&P, Year in Exporting, Threat by Cheap-prawn, Price Constrains, Safety standards, Product Status in Market g. Predictors: (Constant), A&P, Year in Exporting, Threat by Cheap-prawn, Price Constrains, Safety standards, Product Status in Market, Custom procedure 111

20 Table 4.12 (b) ANOVA for Turnover as a Dependent Variable ANOVA h Model Sum of Squares df Mean Square F Sig. 1 Regression a Residual Total Regression b Residual Total Regression c Residual Total Regression d Residual Total Regression e Residual Total Regression f Residual Total Regression g Residual Total a. Predictors: (Constant), A&P b. Predictors: (Constant), A&P, Year in Exporting c. Predictors: (Constant), A&P, Year in Exporting, Threat by Cheap-prawn d. Predictors: (Constant), A&P, Year in Exporting, Threat by Cheap-prawn, Price Constrains e. Predictors: (Constant), A&P, Year in Exporting, Threat by Cheap-prawn, Price Constrains, Safety standards f. Predictors: (Constant), A&P, Year in Exporting, Threat by Cheap-prawn, Price Constrains, Safety standards, Product Status in Market g. Predictors: (Constant), A&P, Year in Exporting, Threat by Cheap-prawn, Price Constrains, Safety standards, Product Status in Market, Custom procedure h. Dependent Variable: Turnover 112

21 Table 4.12(c) Coefficient Summary for Turnover as a Dependent Variable Coefficients a Model Unstandardized Coefficients Standardized Coefficients B Std. Error Beta 1 (Constant) A&P (Constant) A&P Years in exporting (Constant) A&P Years in exporting threat by cheap-prawn (Constant) A&P Years in exporting threat by Cheap-prawn Price Constrains (Constant) A&P Years in exporting threat by Cheap-prawn Price Constrains Safety standards (Constant) A&P Years in exporting threat by Cheap-prawn Price Constrains Safety standards Product Status in Market (Constant) A&P Years in exporting threat by cheap-prawn Price Constrains Safety standards Product Status in Market Custom procedure a. Dependent Variable: Turnover t Sig. 113

22 As per the regression equation Y (Turn over) = + X 1 + X 2 + X n X n +e The Export Growth Y (Turnover) Depends on = (0.322 * A&P) + (0.212 * Product Status in Market) + ( * Custom procedure) + ( * Threat by cheapprawn) + ( -.277* Years in Exporting) + ( * Price Constraint) + ( * Safety standards) This mathematical calculation indicates, through effective advertisement and promotional activity (A&P) and product status in market, the market share growth enhance some more per cent than the existing share. Similarly the variables like customer procedure, threat by cheap prawns, years in exporting, price constraint and safety standards are the discouraging factors for Indian exporter, for which the export turnover for Indian shrimps/prawns declines. 4.7 Concluding Remarks For testing the hypotheses of export growth in terms of turnover, correlation and regression analyses were performed for both the macro and micro variable. All the macro variables under study emerged as interdependent on each other. For growth of export turn over, Advertisement and Promotion of the product and product status in market are the key drivers. Other then this some variable years in exporting, threat by cheap-prawn, price constraint, safety standards, and custom procedure are very concern points, as these variables are creating hurdle for exporting and sustainability in international market. Some steps like in custom procedure and price constrains should be taken care by the Government by creating special policy for make the customer procedure ease and for a minimum 114

23 price decided by the Government for exporting this product. Whereas, issues like safety standards threat by cheap-prawns should be taken care by the exporters directly or with the help of Government. To avoid the problems like food safety measures, government should create some strategy for the deep-sea fishing, rather focusing on the culturing of the shrimps/prawns. 115