This project aims to identify a potential Free Trade Agreement (FTA) for India to maximize economic gains by analyzing trade indicators of various export products.
- Aditya Partap Singh, MBA(IB) Class of '24
- Sajal Vats, MBA(IB) Class of '24
- Product Selection: Identification of products with high export potential and need for destination diversification.
- RHI Analysis: Measurement of concentration of India's export destinations at chapter level (2-digit HS codes).
- RCA Analysis: Assessment of India's export competitiveness and identification of products with declining RCA trends.
- Country Selection: Evaluation of countries for potential FTAs based on import demand and existing trade relations.
- Data Collection: Gathered trade data and calculated RHI and RCA values.
- Analysis: Identified products with RHI > 0.5 and RCA > 1, focusing on those with declining RCA trends.
- Country Evaluation: Analyzed potential FTA partners by studying their import demands and current trade agreements.
- Products Identified for Diversification: Carpets and floor coverings (HS codes 570249 and 570500) with significant export potential to Iraq.
- Potential FTA Benefits: Increased market access for Indian exporters, reduction in trade concentration, and economic gains for both India and Iraq.
The project provides a comprehensive analysis and strategic recommendations for India to leverage FTAs, particularly with Iraq, to enhance its export performance and economic growth.