MERCHANDISE EXPORT RELATION BETWEEN INDIA-GCC: A QUANTITATIVE STUDY OF PRE AND POST FTA INTEGRATION

Parmjeet Kaur Manisha

Abstract


 India’s trade relation with the Gulf Cooperation Council (GCC) has developed significantly in the last two decades. India’s trade has traditionally changed due to introduced economic reforms. The main impact has been experienced on trade relation between India and GCC when India has signed Free Trade Agreement with GCC. After the year 2004 is special for the India and GCC countries and it is a turning point in the India-GCC trade. So, to calculate the impact of free trade agreement between India-GCC, this paper analyzes the trade flows of the GCC countries during pre and post free trade relations. To evaluate the competitiveness and trade relation between India and GCC, RCA and Intensity index have been used. The result of study reveals that competitiveness of India’s major export items to GCC are cereals and cereals preparation, feeding stuff for animals, vegetables & fruits, textile yarn, fabrics, made-up articles, petroleum products and related products & related products and artificial resins & plastic materials etc. The study indicates that presently Qatar, UAE and Saudi Arabia; they are the major trade partner of India among all GCC countries. So there is a dire need for appropriate policy measures for improving the magnitude of its export prospective to Oman, Qatar, Bahrain and Kuwait is required.

JEL Classification: F15, F19, F53

Keywords: India-GCC Trade, RCA, Trade Intensity Index, Economic Integration.


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