Proposed India-UK Free Trade Agreement: Estimating Potential Export Gains for India

By : Rinku Manocha , Niti Bhasin

Page No: 156-168

Abstract
In view of the consistent efforts of India and UK to negotiate a Free Trade Agreement (FTA), the paper attempts to estimate the potential export gains for India from the proposed India-UK FTA. The trends of India’s exports to the UK have been analysed using compound annual growth rate. To estimate the potential short- and long-run impact of the FTA on India’s exports to the UK, the ARDL framework has been employed. The results indicate that market size and liberal trade policies are contributing to India-UK exports in the long-run. The tariff imposed by the UK on India’s exports was found to be negative and significant, both for the long- and short-run, thereby suggesting that reduction or removal of tariffs due to the FTA will significantly enhance trade gains for India.

Authors :
Rinku Manocha
Associate Professor, Department of Commerce, Hindu College, University of Delhi, New Delhi.

Niti Bhasin
Professor (International Business), Programme Coordinator: MBA (IB), Department of Commerce, Delhi School of Economics, University of Delhi, New Delhi.
 

DOI: https://doi.org/10.32381/PROD.2022.63.02.3