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


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


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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  • Bitan Mondal, Bitan Mondal & Smita Sirohi, Smita Sirohi & Vishal Thorat, Vishal Thorat, 2012. "Impact of ASEAN-India Free Trade Agreement on Indian Dairy Trade: A Quantitative Approach," MPRA Paper 40790, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:40790

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    References listed on IDEAS

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

    1. Squicciarini, Mara P. & Vandeplas, Anneleen & Janssen, Emma & Swinnen, Jo, 2017. "Supply chains and economic development: Insights from the Indian dairy sector," Food Policy, Elsevier, vol. 68(C), pages 128-142.

    More about this item


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

    JEL classification:

    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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