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Impact of ASEAN-India Free Trade Agreement on Indian Dairy Trade: A Quantitative Approach

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  • Bitan Mondal, Bitan Mondal
  • Smita Sirohi, Smita Sirohi
  • Vishal Thorat, Vishal Thorat

Abstract

The study attempts a quantitative assessment of the impact of recently signed ASEAN-India FTA (AIFTA) for dairy commodities in India. ASEAN is strategically a potential market in dairy for India and our country already stands as net exporter of dairy products in this region. Partial equilibrium model (SMART model) has been used to simulate the likely impact of dairy exports to and imports from ASEAN countries under the proposed tariff reduction schedule of the AIFTA. The SMART model simulations suggest that AIFTA has generated an additional scope for India to increase its dairy exports to ASEAN countries. On the other hand, tariff elimination from India’s side creates little scope for ASEAN nations to expand their shares. The threat of cheap imports competing with the domestic products in the Indian markets is therefore not alarming. However necessary adjustment assistance may be provided to the dairy product manufacturers to counter the competition in the relevant product lines.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40790.

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Date of creation: 20 Aug 2012
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Handle: RePEc:pra:mprapa:40790

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Keywords: SMART Model; Dairy Products; AIFTA; Simulation; Export-Import;

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  1. Chen, Natalie & Imbs, Jean & Scott, Andrew, 2004. "Competition, Globalization and the Decline of Inflation," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4695, C.E.P.R. Discussion Papers.
  2. Chandrima Sikdar & Biswajit Nag, 2011. "Impact of India-ASEAN Free Trade Agreement: A cross-country analysis using applies general equilibrium modelling," Working Papers, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada. 10711, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
  3. Markusen, James R. & Melvin, James R. & Maskus, Keith E. & Kaempfer, William, 1995. "International trade: theory and evidence," MPRA Paper 21989, University Library of Munich, Germany.
  4. Langley, Suchada V. & Somwaru, Agapi & Normile, Mary Anne, 2006. "Trade Liberalization in International Dairy Markets: Estimated Impacts," Economic Research Report, United States Department of Agriculture, Economic Research Service 7214, United States Department of Agriculture, Economic Research Service.
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