ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Fuel Pricing Policy Reform in India: Implications and Way Forward

This paper undertakes an examination of the differential impact of international oil prices on domestic inflation and output growth in India under two alternative scenarios. One scenario is, when domestic fuel prices are allowed a formula-based automatic alignment with international oil prices and the second, when as per current policy, fuel prices have evolved as a consequence of revisions specified periodically by the government. The differential impact analysis has been undertaken in a structural Vector Autoregressive framework using the technique of innovation accounting.

South Asia's Free Trade Agreement: Strategies and Options

The implementation of the South Asian Free Trade Area agreement in 2006 suggests that regional economic integration is being seriously pursued in south Asia. Given the economic asymmetry in south Asia and the predominant position of India in the region, the article proposes India as an anchor economy that can connect south Asia with east Asia to form an Asia-wide free trade arrangement. It suggests a review of the existing agreements like the Bangkok Agreement and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation in terms of membership and sectoral coverage as these can act as potent instruments in facilitating the south Asia-east Asia economic integration.
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