Quantifying transport, regulatory and other costs of India–Bangladesh trade

In the globalised world, international borders ought to be mere lines on the map. But recent studies have shown that informal trade barriers still exist, and inhibit trade, particularly so in the developing countries. This can arise due to a host of factors such as complex customs procedures, which sometimes change, and capacity constraints, given limited facilities and/or corruption at the border. However, non-tariff barriers of various sorts and structural impediments are less obvious and perhaps more interesting, but also much more difficult to measure directly. In this context, this paper attempts to quantify the relevant costs resulting from informal barriers that impinge upon trade between India and Bangladesh through the land customs stations (LCSs) at Petrapole (West Bengal) and Benapole (Bangladesh). The study is based on primary data collated through surveys conducted in West Bengal. Our estimates show that the aggregate delay pertaining to all the phases of exports turns out to be approximately four days for a single shipment. It also shows that the additional transaction costs in terms of delays and speed money incurred by the Indian exporters during trading with Bangladesh is about 10 per cent of shipment value. The present study has shown that informal barriers/para-tariff in India-Bangladesh trade are already high and further trade liberalisation without improving the infrastructure would be counterproductive. The paper ends with feasible policy recommendations to make trade between India and Bangladesh more vibrant.

Productivity and technical change in Indian economy

This paper makes a modest attempt to apply input-output methodology to understand the structural changes in Indian economy in recent years. Our observations cover the period 1998-99 to 2006-07, the latest year for which India’s input-output table is published. Our analysis indicates that most of the manufacturing as well as services sectors exhibit large intermediate input factor productivity growth during the years under observations. Notable among them are electrical machinery, coke, refined petroleum etc, radio, television and communication equipments, machinery and equipments, construction, and hotels and restaurants. Furthermore barring few sectors, most of these sectors registered capital productivity gain during this period.Surprisingly, India has not been able to register significant capital productivity gains in the labour intensive sectors like food products, textile products etc, even though India has comparative advantage in these sectors being a labour rich economy. We find that there is falling labour productivity in many of the labour intensive sectors like agriculture and allied, mining and quarrying, food products, wood products, pulp and paper. On the other hand, our analysis of technical coefficient of India’s input-output table suggests that input cost on agriculture allied activities in food products, beverages sector has progressively fallen over the years. Moreover, we find that input costs on machinery related items in many of our sector are increasing which suggest that economy is on a path of modernisation. This has also helped in reducing energy cost on production.Input-putput; India; total factor productivity growth; technical change

High technology merchandise trade: where do India stand?

By and large, India’s performance on the high technology manufacturing trade front is not too impressive. India is a small player in most of the product categories barring pharmacy sector. In the last ten years period of observation, India has not able increase her presence significantly in most of the segment. By contrast, China, starting from the similar base like India in some of the segments, has exhibited marked improvement.India; High Technology Trade

Mitigating carbon emission through economic instruments: An Indian Perspective

EnergyEnergy ResourcesCarbon Emission

Complementarity and Potentials of High Technology Trade, Technology and Skills Transfers between India-Russia

This paper examines complementarities and potentialities in merchandise trade in general and high technology trade in particular between India and Russia. In this context, we have also looked at the complementarities for bilateral transfer of investment, technology and skills. The analysis shows that bilateral trade flow is small even though trade complementarities in the segment of high technology as well as in merchandise trade in general exist. Inefficient trade logistics networks, absence of mutual recognition of standard, lack of bilateral technology and skill transfer and low level of connectivity between private sectors of either country are some of the factors responsible for not realising the potentials of trade. This is further confirmed by our illustrative CGE modelling exercise which suggest about half a percentage points increase in real GNP in either country if bilateral tariff barriers are abolished. In this context, governments of Russia and India need to play pro-active role to raise the level of economic engagemen

Globalization of the Indian Economy: Effects on Sectoral/Regional/Employment Realignments

Globalization of the Indian industry received significant thrust since July 1991. It is expected that the reforms will be beneficial for growth. Few would deny that there would be transitional costs. The purpose of this paper is to estimate the changes in employment that will be required across sectors, occupation, and regions within India. With regard to the impact on occupational characteristics of employees, our study indicates that the deepening of reforms give a boost primarily to employment of sales workers; administrative, executive and managerial workers; and service workers. Within India, we find that Northeast and Eastern region suffers maximum in terms of employment los

Trends in High Technology Trade

The paper looks at the trends of India's high Technology trade vis-a-vis other countrie

Globalization of the Indian Economy: Effects on Sectoral/Regional/Employment Realignments

Globalization of the Indian industry received significant thrust since July 1991. It is expected that the reforms will be beneficial for growth. Few would deny that there would be transitional costs. The purpose of this paper is to estimate the changes in employment that will be required across sectors, occupation, and regions within India. With regard to the impact on occupational characteristics of employees, our study indicates that the deepening of reforms give a boost primarily to employment of sales workers; administrative, executive and managerial workers; and service workers. Within India, we find that Northeast and Eastern region suffers maximum in terms of employment los

Trends in High Technology Trade

The paper looks at the trends of India's high Technology trade vis-a-vis other countrie

Overview of India-Nepal Trade: Trends, Trade Logistics and Impediments

This paper attempts to identify the logistics impediment in trade between India and Nepal based on indepth field visits