IDEAS home Printed from
   My bibliography  Save this article

India’s Terms of Trade: A Commodity Group-wise Analysis


  • L Krishna Veni


This article examines the Indian terms of trade during the period 1980-81 to 2002-03. Through the study, it is found that the general index of Net Barter Terms of Trade (NBTOT) was unfavorable to India in the early few years of the study period; however, since 1983-84, it reveals a favorable trend. Further, it is noted that the Gross Barter Terms of Trade (GBTOT) is favorable throughout the study period. The Income Terms of Trade (ITOT) points out that the capacity of the country to import is encouraging almost in the entire study period. The author points out that the mean values of NBTOT for the commodity groups like, food and food articles, beverages and tobacco, animal and vegetable oil, fats and waxes, manufactured goods classified chiefly by material have deteriorated in the post-liberalization period compared to pre-liberalization period. On the contrary, some commodity groups like crude materials except fuels; mineral fuels, lubricants, etc; chemicals and related products; machinery and transport equipment; and miscellaneous manufactured articles, have indicated an improvement since the pre-liberalization period in terms of the mean values of NBTOT. This study suggests that the Indian exports can quote higher prices in the international market only when the quality and quantity of the products improve.

Suggested Citation

  • L Krishna Veni, 2006. "India’s Terms of Trade: A Commodity Group-wise Analysis," The IUP Journal of Financial Economics, IUP Publications, vol. 0(1), pages 54-68, March.
  • Handle: RePEc:icf:icfjfe:v:04:y:2006:i:1:p:54-68

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icf:icfjfe:v:04:y:2006:i:1:p:54-68. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.