Global South Partnerships and South–South Trade Elasticities: India–BIMSTEC Case Study

Background: The growing importance of South–South cooperation has shifted attention toward regional trade arrangements among developing economies as alternative engines of growth and integration. BIMSTEC represents one such strategic framework through which India seeks to expand regional connectivity, trade integration, and economic collaboration across the Bay of Bengal region. Aims: This study investigates India's bilateral trade with BIMSTEC countries by estimating South–South trade elasticities within a gravity-model framework. Study Design: Quantitative analysis Methodology: Using secondary panel data for 2011–2024, the analysis examines how economic size, trade openness, distance, and temporal shocks shape India–BIMSTEC exports and imports. Results: Descriptive results reveal strong and uneven trade linkages, with Thailand and Bangladesh emerging as India's largest BIMSTEC partners. Incorporating year fixed effects produces a statistically significant income elasticity for India (β ≈ 0.16 p ≈ 0.01), indicating that India's economic growth substantially drives regional trade flows. Distance and trade openness exhibit mixed effects, reflecting structural characteristics of BIMSTEC economies. Conclusion: Although the dataset includes only BIMSTEC partners, limiting comparative or membership-specific inferences, the income elasticity estimate aligns with typical South–South trade patterns. Overall, the study provides the empirical elasticity evidence for India–BIMSTEC trade, underscoring the importance of India's domestic performance in shaping regional integration outcomes.