Manuscript Number : GISRRJ23645

Trade Analysis of India with ASEAN-5 Nations

Authors(1) :-Chattan Singh Yadav

Regional economic integration is a post-Second World War phenomenon which contributed significantly for the development of nations. The ASEAN was established on 8 August 1967 with the core objective of economic integration to accelerate the growth, social progress and cultural development. India has been pursuing a policy to strengthen its relationship with ASEAN countries since the time of its independence. India’s trade with Southeast Asia received a significant impetus in the early 1990s, with the launching of Look East Policy, after which the partners have been trading intensively and extensively. The study at hand examines the trend and composition of trade between India and ASEAN’s top 5 trading partner countries Singapore, Indonesia, Vietnam, Malaysia and Thailand from 2000 to 2022 at aggregate level. Moreover, India’s exports are elastic to ASEAN import demand and to India’s relative export price competitiveness, which can help India to gain market access. In addition, AFTA has caused the trade to divert from nations outside the agreement to FTA’s member nations leading to trade diversion rather than trade creation. Finally, the paper looks into economic implication of RCEP using SMART Simulation Model. It found that in a scenario where India introduces 100% tariff cut for all RCEP members, results into further increase in India’s imports and reduced tariff revenue. Hence, the paper provides all economic evidence to support India’s decision to stay out of RCEP, given the current scenario and India’s experience with the past trade agreements.

Authors and Affiliations

Chattan Singh Yadav
Research Scholar, Department of Economics, Banaras Hindu University, Varanasi , Uttar Pradesh, India, India

Trade, Analysis, India, ASEAN-5, Nations

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Publication Details

Published in : Volume 6 | Issue 4 | July-August 2023
Date of Publication : 2022-07-15
License:  This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 24-36
Manuscript Number : GISRRJ23645
Publisher : Technoscience Academy

ISSN : 2582-0095

Cite This Article :

Chattan Singh Yadav , "Trade Analysis of India with ASEAN-5 Nations", Gyanshauryam, International Scientific Refereed Research Journal (GISRRJ), ISSN : 2582-0095, Volume 6, Issue 4, pp.24-36, July-August.2023
URL : https://gisrrj.com/GISRRJ23645

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