India-ASEAN Free Trade Agreement: A Sectoral Analysis

20 Pages Posted: 28 Oct 2010

See all articles by Shahid Ahmed

Shahid Ahmed

Jamia Millia Islamia (A Central University) - Economics

Date Written: October 27, 2010


This study investigates the sectoral dimensions of India–ASEAN Free Trade Agreement as a result of tariff liberalization. This study reveals that both India and ASEAN gains in terms of welfare while a term of trade for India deteriorates. The present study reveals that processed food products, grain crops, textile and wearing apparel, light manufacturing and heavy manufacturing sectors are expected to be affected significantly and differently. However, results indicate a surge of ASEAN’s exports of processed food items, agricultural products and fisheries which might have adverse impact on employment and wages of Indian working class. This study also revealed that the present FTA will have adverse impact on trade balance and the revenue losses for India which might affect public health, education and government procurement holding for a significant share of national budgets having multiple development dimensions.

Keywords: Economic Integration, GTAP, SMART

JEL Classification: F1, L67, F13, G38, I3

Suggested Citation

Ahmed, Shahid, India-ASEAN Free Trade Agreement: A Sectoral Analysis (October 27, 2010). Available at SSRN: or

Shahid Ahmed (Contact Author)

Jamia Millia Islamia (A Central University) - Economics ( email )

Jamia Nagar
New Delhi, 110025


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