EXPORT DIVERSIFICATION AND TRADE RESILIENCE OF INDIA: A STUDY OF GLOBAL SHOCKS AND TRADE DISRUPTIONS

Abdur Rashid Ahmed

Abstract

India’s diversified trade strategies have shifted to product diversification indicating growth in the non-traditional product base, and geographical diversification started adding more and more trading partners in the export list over the last few decades. India was able exhibits a powerful position over the last couple of years in relation to global shocks such as global recession, political instabilities, disruption of global supply chains, and global pandemics like Covid-19. Hence, taking the principal objective of assessing the level of product and location diversification of Indian export, the study explores the realization of trade resilience in presence of various global shocks and trade disruptions. Using the concentration index of HHI, Theil and ANOVA model, the study finds that the product diversification indices based on HHI and Theil index of total export of India on various product categories to the globe is concentrating but the results of geographical diversification is increasing even during the period of Covid-19 pandemic. However, the one-way ANOVA result also reveals that the high degree of trade resilience which helps India to maintain high growth rate in terms of export volume which again positively impact on GDP growth rate of the country.

Source: semanticscholar · PDF

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