Indian Journal of Economics and Development

Open Access Open Access  Restricted Access Subscription Access

The State of India’s Foreign Trade during the Post Reform Period:An Empirical Analysis


Affiliations
1 Department of Economics, North Eastern Hill University, India
2 Department of Economics, Assam University, India
 

Objectives: The present study tries to throw light on the direction, nature, share and variation of India’s foreign trade with rest of the world during the post reform period.

Methods/Statistical analysis: An analysis of India’s balance of trade position is made at disaggregate level with different category of countries like OPEC, OECD, Eastern Europe, Developing countries and the other types of countries. A statistical analysis in the form of ANOVA is carried out for examining variation in the level of India’s export and import with rest of the world.

Findings: The empirical findings of the study show that though India is facing deficit balance of trade with rest of the world throughout the study period but the volume of trade deficit has widened mainly after 2002-03. India has enjoyed a trade surplus with OPEC, OECD, Eastern Europe, Developing countries and other type of countries during some points of time. The study has also found that India is having surplus balance of trade mostly with the developing and other type of countries. The study has also found that export and imports sharing of India among different countries are found statistically highly significant. The share of India’s export and import is also found to be shifted more towards developing and other type of countries in recent times and thus representing the dominance of these two countries in India’s current foreign trade situation. The findings of the present study are unique in the sense that it tries to analyse India’s balance of trade position by disaggregating the rest of the world into different groups.

Application/Improvements: The present study recommends that efforts must be put in raising India’s level of export to those countries where her products have relatively higher demand and she must look for some import substitution measures in case of those countries upon which she is heavily relying upon her import. The scope of improvement of the present study lies in exploring the causes of variation in the level of India’s foreign trade with the rest of the world.


Keywords

Foreign Trade, Post Reform Period, Nature of Trade, Balance of Payment, Share of Trade.
User
Notifications

  • C. Wadhva. India trying to liberalise: economic reforms since 1991. In J. Rolfe (ed) Asia Pacific: A Region in Transition, Honolulu: Asia Pacific Centre for Security Studies. 2004; 1-26.

  • Overall Trend in India’s Foreign Trade in the Era of Pre and Post Liberalization. https://dsgsau.wordpress.com/2014/05/23/overall-trend-in-indias-foreign-trade-pre-and-post-liberalization/. Date accessed: 23/05/2014.

  • C. Veeramani. Sources of India's export growth in pre-and post-reform periods. Economic and Political Weekly. 2007; 45(25), 2419-2427.

  • M. Surugiu, R, Surugiu. International trade, globalization and economic interdependence between European countries: implications for businesses and marketing framework. In: Daniel S. International Conference on Emerging Markets Queries in Finance and Business. 2015; 32, 131-138.

  • The wealth of nations. https://en.wikipedia.org/wiki/The_Wealth_of_Nations. Date accessed: 09/03/2019.

  • D. Ricardo. On the principles of political economy and taxation. David Ricardo. 1817; 1-333.

  • V. Lokanathan. A history of economic thought. S. Chand Publishing House, New Delhi. 1973.

  • D. Salvator. Wiley India Edition Pvt Ltd Eight Edition. International Economics. New Delhi. 2004.

  • T.K. Mishra. India’s foreign trade: lesson and challenges. Indian Journal of Asian Affairs. 1992.

  • S.C. Ray. Did India's economic reforms improve efficiency and productivity? A nonparametric analysis of the initial evidence from manufacturing. Indian Economic Review, New Series. 2002; 37 (1), 23-57.

  • K. Siddiqui. Globalisation and neo-liberal economic reforms in India: a critical review. In (Eds) by S. K. Pramanick and R. Ganguly, Globalization in India: New Frontiers and Emerging Challenges. 2010; 219-243.

  • D. Rodrik, A. Subramanian. Why India can grow at 7 percent a year or more? Projections and reflections. Economic and Political Weekly. 2004; 39(16), 1591-1596.

  • I.J. Ahluwalia. India’s economic reforms: an appraisal. In J.D. Sachs, A. Varshney and N. Bajpai (ed), India in the Era of Economic Reforms, New Delhi: Oxford University Press. 1999.

  • J.D. Agarwal, A. Agarwal. Globalization and international capital flows. Finance India. 2005; 19(1).

  • J. Tybout, A.J. Melo, V. Corbo. The effects of trade reforms on scale and technical efficiency: new evidence from Chile. Journal of International Economics. 1991; 31, 3-4.

  • R. Hausmann, S. Federico. U.S. and global imbalances: can dark matter prevent a big bang? Development, Harvard University. 2005; 1-11.

  • N. Prasad. India’s international trade and economic reforms. Kanishka Publishers, Distribution. 2004.

  • Hand Book of Statistics on Indian Economy 2016 to 17. https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/0HANDBOOK2017C9CF31D4B78241C9843272E441CD7010.PDF. Date accessed: 2017.


Abstract Views: 275

PDF Views: 155




  • The State of India’s Foreign Trade during the Post Reform Period:An Empirical Analysis

Abstract Views: 275  |  PDF Views: 155

Authors

Pranati Das
Department of Economics, North Eastern Hill University, India
Manash Roy
Department of Economics, Assam University, India

Abstract


Objectives: The present study tries to throw light on the direction, nature, share and variation of India’s foreign trade with rest of the world during the post reform period.

Methods/Statistical analysis: An analysis of India’s balance of trade position is made at disaggregate level with different category of countries like OPEC, OECD, Eastern Europe, Developing countries and the other types of countries. A statistical analysis in the form of ANOVA is carried out for examining variation in the level of India’s export and import with rest of the world.

Findings: The empirical findings of the study show that though India is facing deficit balance of trade with rest of the world throughout the study period but the volume of trade deficit has widened mainly after 2002-03. India has enjoyed a trade surplus with OPEC, OECD, Eastern Europe, Developing countries and other type of countries during some points of time. The study has also found that India is having surplus balance of trade mostly with the developing and other type of countries. The study has also found that export and imports sharing of India among different countries are found statistically highly significant. The share of India’s export and import is also found to be shifted more towards developing and other type of countries in recent times and thus representing the dominance of these two countries in India’s current foreign trade situation. The findings of the present study are unique in the sense that it tries to analyse India’s balance of trade position by disaggregating the rest of the world into different groups.

Application/Improvements: The present study recommends that efforts must be put in raising India’s level of export to those countries where her products have relatively higher demand and she must look for some import substitution measures in case of those countries upon which she is heavily relying upon her import. The scope of improvement of the present study lies in exploring the causes of variation in the level of India’s foreign trade with the rest of the world.


Keywords


Foreign Trade, Post Reform Period, Nature of Trade, Balance of Payment, Share of Trade.

References