Institute for Social and Economic Change
Working Paper: 356
Analysis of Export Competitiveness of Indian Agricultural Products with ASEAN Countries
The paper attempts to assess India’s trade intensity as well as the Revealed Comparative Advantage (RCA) of the agricultural sector with respect to trade with ASEAN (Association of South-East Asian Nations) at the aggregate and disaggregate levels. The study assesses the structure of the comparative advantage from 2001 to 2013. ITC (International Trade Centre) data available in the public domain are used to accomplish the study. HS (Harmonized System) classification is used to calculate the Trade Intensity (TI) index and RCA index. The study found that India’s export intensity in total agricultural trade was increasing with respect to ASEAN rather than with the rest of the world. Import Intensity, it was observed, that declining over the study period. It was also notice that the comparative advantage was decreasing gradually throughout the study period although the pattern of India’s comparative advantage in export of agricultural products with ASEAN varied from one commodity to another. The study suggests direct policy initiate to promote products that have comparative advantage in exports. It will also help producers and exporters to select appropriate commodities that have comparative advantage for trading. The efforts of Indian exporters should be focused on promotion of export of meat, vegetables and fruits, tea, rice and cereal products to the ASEAN markets.