Estimating the Impact of the Indo-ASEAN FreeTrade Agreement on India’s Balance of Trade

Abstract

India signed a Free Trade Agreement with ASEAN on 13th August, 2009. In this paper we analyze one aspect of the possible impacts of the FTA: that on India’s Balance of Trade. It is found that the impact of the agreement on India’s balance of trade is expected to be negative. India’s imports will rise significantly, however there will be no commensurate rise in India’s export to these countries except to Indonesia.

Keywords

• Tariff Elasticity
• Balance of Trade
• Free Trade Agreements
• India
• ASEAN.