India’s export competitiveness of agricultural products with asean

Abstract

The paper attempts to assess India’s trade intensity as well as Revealed Comparative Advantage (RCA) for agriculture sector with respect to ASEAN (Association of South- East Nation) at the aggregate and disaggregate level. The study assesses the structure of comparative advantage over 2001 to 2013. ITC (International Trade centre) data available under public domain is used to accomplish the study. HS classification is used to calculate the Trade Intensity (TI) index and RCA index. The study has found that India’s Export intensity in total agriculture trade has been increasing with respect to ASEAN than rest of the world. While in terms of Import Intensity, declining trend has been observed over the study period. It has also been found that comparative advantage is decreasing gradually throughout the study period, although the pattern of India’s comparative advantage in export of agricultural products with ASEAN varies from one commodity to another commodity. The study suggests to direct the policy initiate to promote the products, having comparative advantage in exports. It will also help to producers and exporters to select appropriate commodity for trading, which have comparative advantage. Effect should be focused on promotion of exports like Meat, Vegetables and Fruits, Tea, Rice and Cereal products for Indian exporters in ASEAN market.