This article analyses the competitiveness of India’s agricultural products in world markets. Four indices of revealed comparative advantage (RCA) were used at the four-digit level of harmonized system (HS) of classification for the period of 1996–2015. Under live animal products, 7 out of 26 products showed RCA. For vegetable products, 21 out of 58 showed strong RCA. For products like animal or vegetable fat and prepared foodstuff, 2 out of 16 and 9 out of 49 showed RCA, respectively. Further, the consistency tests reveal that the indices are less satisfactory as the cardinal and dichotomous measures but relatively satisfactory as ordinal measure. Hence, study would propose an ordinal interpretation of RCAs indices for better policy formulation. The study has also found the pattern of RCA indices to be fairly stable over the years. JEL Codes: F1, Q1
This article examines the impact of ASEAN–India Free Trade Agreement on India’s special products categories, namely, coffee, tea and pepper based on partial equilibrium model. The Software for Market Analysis and Restrictive Trade (SMART) model has been used to estimate the trade creation (TC) and trade diversion (TD) effect, revenue effect and welfare effect for the above-mentioned commodities. The results from the SMART simulation analysis indicate that the increase in trade for both the scenarios is mainly driven by TC rather than TD. Further, the study also assesses how the total trade effect is distributed across the major ASEAN countries for each commodity and found that Indonesia and Vietnam are the biggest gainers in terms of TC effect in both the scenarios. JEL Classification: F13, F15, Q1
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