India’s Trade Potential and Prospects with Asia Pacific Trade Agreement (APTA)

Sadhna . .

Abstract


In the recent years, India’s trade with Asia Pacific Trade Agreement (APTA) bloc continued to increase since its (APTA) inception. This is the only operational trade agreement involving People's Republic of China and India. This article attempts to explore India’s trade potential and prospects with APTA by utilizing revealed comparative advantage (RCA) and trade intensity index (TII).  For this, secondary data is collected at 2-digit level from international trade centre (ITC), Geneva and world integrated trade solution (wits). Results of the study show that India has trade specialization i.e. RCA>1 in the exports of many products i.e. fish, edible fruits and vegetables, nuts, peel of citrus fruit, melons, coffee, tea mate and spices, cereals, oil seed, grain, seed, fruit, sugars, cereal, flour, starch, animal fodder , cotton, bird skin, feathers, artificial flowers, human hair, copper, aluminium, etc to APTA and imports of Coffee, inorganic and organic chemicals, precious metal compound, isotopes, vegetable textile fibers, fertilizers, Tanning, Silk,  paper yarn, etc from it. The value of intensity for total is greater than 1. India is a net importer of this bloc due to III (import intensity index)>EII (export intensity index). India has sustainable and strong trade potential and prospects with APTA.


Keywords


Trade agreement; Export; Comparative; Specialization; Intensity; Potential; Sustainable.

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References


Balassa, B. (1965). Trade Liberalization and Revealed Comparative Advantage, The Manchester School of Economics and Social Studies, 33, 99-123.

Kojima, K. (1964). The Pattern of International Trade among Advanced Countries, Hitotsubashi Journal of Economics, 5(1), 16-36.


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