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

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Revealed Comparative Advantage and Decomposition of Export Growth

Using the revealed comparative index and the method of constant market share analysis, this article attempts to identify the relative advantage/disadvantage of select rubber products exported from India and decompose the contributory factors behind export growth of these products.

Rubber and Rubber Products

Attempting to provide a conceptual basis for disaggregate-level analysis of the implications of the ASEAN-India Free Trade Agreement on rubber and rubber products, this article critically assesses the key provisions of the accord. The analysis reveals that the categorisation of tariff lines under six different groups is the most crucial component governing tariff policy and the implementation period. India's negative balance of trade in rubber and rubber products with ASEAN and the high annual average growth rate of imports of fi nished rubber products underline the need for close monitoring of the trends in external trade with the trading bloc at the disaggregate level.

Value Addition or Value Acquisition?

The prolonged crisis in the plantation sector has attracted widespread attention. The current situation of growing market uncertainties or depressed farm gate prices of four major plantation crops - natural rubber, tea, coffee and cardamom - is rather unprecedented in gravity and has serious repercussions. The need for strategic interventions to facilitate the growth of producers' consortiums in the conduct of primary marketing of tea, coffee and cardamom deserves due attention. Moreover, the link between instabilities in farm gate prices and duty free imports for value added exports should also be examined.

Natural Rubber in Post-QRs Regime

The impact of the trade control measures on natural rubber imposed last year, though still too early to discern, must be seen in the context of the removal of quantitative restrictions on imports and the liberalised trade regime in place over the past decade.
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