IDEAS home Printed from
   My bibliography  Save this paper

Impact of tariff reduction on exports: A quantitative assessment of Indian exports to US


  • Aradhana Aggarwal

    (Indian Council for Research on International Economic Relations)


This paper quantitatively assesses likely changes in market access opportunities for Indian exports owing to tariff reductions by the USA. The study identifies particular products for India at the ISIC 4-digit level of disaggregation, which could be considered tariff sensitive. Regression analysis of the relationship between MFN tariff rates and India's exports to the US was used to assess in quantitative terms the likely impact of tariff reduction that may be agreed in the Doha Round. This analysis suggests that tariff cuts are not expected to benefit India's exports to the US in a major way. With the full implementation of the Chairman's formula for tariff cuts, increase in India's exports to the US would amount to 1.2 or 0.6 depending on the value of the B coefficient in theChairman's formula. These findings are in all likelihood substantially due to the tariff diversion effect of NAFTA preferences in favour of suppliers in Mexico, which is a competing country in many traditional items. It is expected that reduction of MFN tariff would alleviate the trade diversion effect of the NAFTA.The study has also attempted to decompose changes in India's total exports due to tariff reductions in the US into the competitive and market effects. The analysis suggests that the increase in India's exports would be mainly due to the competitive effect. This leads the author to conclude that it is crucial for India to improve its competitiveness vis-a-vis its competitors in different markets.

Suggested Citation

  • Aradhana Aggarwal, 2004. "Impact of tariff reduction on exports: A quantitative assessment of Indian exports to US," Indian Council for Research on International Economic Relations, New Delhi Working Papers 120, Indian Council for Research on International Economic Relations, New Delhi, India.
  • Handle: RePEc:ind:icrier:120

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Lucas, Robert E. B., 1988. "Demand for India's manufactured exports," Journal of Development Economics, Elsevier, vol. 29(1), pages 63-75, July.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Safet KURTOVIC & Blerim HALILI & Nehat MAXHUNI, 2017. "The effect of preferential tariffs of the EU: Some evidence from B&H," Journal of Economics and Political Economy, KSP Journals, vol. 4(3), pages 247-262, September.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    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:ind:icrier:120. 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.K. Manjunath) The email address of this maintainer does not seem to be valid anymore. Please ask G.K. Manjunath to update the entry or send us the correct email address. 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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.