An analysis of India’s export potential in South Asia under SAFTA

• DOI: 10.18488/35.v10i2.3372
• Publication Date: 2023-05-18T07:33:07Z
• Authors: Vipin Sharma; Anand Sharma

There is a consensus in the literature that higher exports are associated with increased economic growth, productivity, and employment. This paper attempts to analyze India’s export potential South Asian region following Free Trade Area (SAFTA) agreement. Using panel data, an augmented gravity model analysis employed for period from 2004 2021. The finds positive significant effect of trading countries’ gross domestic product (GDP) on total exports, whereas per capita GDP differential between countries negative. does not find any distance, border, or common language exports. study also 2021, average was three (Pakistan, Bangladesh, Maldives) negative four (Nepal, Sri Lanka, Afghanistan, Bhutan). India had highest Pakistan during this period. suggests must raise its those Association Regional Cooperation (SAARC) member nations where it has been able accordance explore trade opportunities other Asia, Europe, North America. In context, crucial focus infrastructural reforms boost