Agricultural Economics Research Review

UGC CARE (Group 1)
  • Year: 2017
  • Volume: 30
  • Issue: 1

Agricultural trade potential between India and ASEAN: An application of gravity model§

  • Author:
  • V.R. Renjini1,, Amit Kar1, G.K. Jha1, Pramod Kumar1, R.R. Burman2, K.V. Praveen1
  • Total Page Count: 8
  • Page Number: 105 to 112

1Division of Agricultural Economics, ICAR-Indian Agricultural Research Institute, New Delhi-110 012

2Division of Agricultural Extension, ICAR-Indian Agricultural Research Institute, New Delhi-110 012

Abstract

The study has analysed the competitiveness and potential of agricultural trade between India and ASEAN members for the period 1995–2014. The Revealed Comparative Advantage Index has been used to assess the competitiveness of agricultural commodities exported by India in comparison with ASEAN countries. The study has found that India has export competitiveness in cotton, rice, oilcake meals and tea compared to ASEAN countries. The gravity model has been employed to find the overall agricultural trade potential between India and ASEAN countries. The model estimates have indicated that partners’ income and free trade agreement are positively influencing the bilateral trade. The border trade has found no significance in the bilateral trade pointing weak infrastructure at Indo-Myanmar border. Trade potential estimates have shown that India has exceeded the trade potential with Cambodia, Indonesia, Malaysia, Myanmar, and Vietnam while there is an opportunity to harness the trade potential with Brunei, Lao, Philippines, Singapore, and Thailand. The study stresses the importance of trade facilitation measures to enhance the trade with the ASEAN.

Keywords

ASEAN, revealed comparative advantage, gravity model, FTA, trade potential