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Agricultural Economics Research Review
Year : 2017, Volume : 30, Issue : 2
First page : ( 245) Last page : ( 263)
Print ISSN : 0971-3441. Online ISSN : 0974-0279.
Article DOI : 10.5958/0974-0279.2017.00046.5

Nepal-India Agricultural Trade: Trends, Issues and Prospects

Sharma Ramesh1, Kumar Anjani2,*, Joshi P.K.2

1Formerly at Food and Agriculture Organization of the United Nations, Rome

2International Food Policy Research Institute, South Asia Office, New Delhi-110012

*Author for correspondence Email: anjani.kumar@cgiar.org

JEL Classification: F14, Q17

Online published on 24 February, 2018.

Abstract

The study has assessed trends, issues and prospects of Nepal-India agricultural trade. The trade performance indicators viz. revealed comparative advantage, trade complementarity index and indicative trade potential have been estimated to understand the performance and prospects of Nepal's agricultural trade with India. The results have depicted a high comparative advantage for most of the exported agricultural items from Nepal with almost perfect complementarity in the agricultural export profiles of both India and Nepal. However, Nepal's export potential in the Indian market is not very encouraging, and in most cases the binding constraint to trade potential of Nepal is its limited export capacity and not the lack of opportunities in the Indian market.

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Keywords

Agricultural trade, comparative advantage, trade complementarity, export potential, Nepal, India.

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