Impact of State Trading Enterprises on Indian Agriculture Trade Potential via Gravity Model Approach

  • Tarun Gehlot
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  • Tarun Gehlot

    Student at MBM University Jodhpur, India

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State Trading Enterprises (STEs) have influence in a variety of sectors throughout the world. These institutions confront two problems as a result of their importance in international business: recognizing and conquering the difficulties in international business management that are specific to state-owned enterprises, and predicting changes in existing international business practices. The study looked at the feasibility and capacity of agricultural trade between India and a set of nations from 2009 to 2019. India's agricultural commodities exports were compared to those of a few other countries using the Revealed Comparative Advantage Index. According to the survey, Indian exporters are more competitive than other countries in cotton, rice, oilcake meals, and tea. The gravity model was used to calculate the overall value of agricultural commerce between India and other countries. The model predicts that the income of partners and free trade agreements have a positive influence on bilateral trade. Considering the importance in bilateral trade, border trade between India and Myanmar has been neglected due to a lack of infrastructure. According to estimates of India's trade potential with Cambodia, Indonesia, Malaysia, Myanmar, and Vietnam, India has already surpassed that potential, but Brunei, Lao, the Philippines, Singapore, and Thailand still have potential. The research emphasizes the importance of trade facilitation measures in boosting trade with certain countries. The empirical data demonstrate that output, the shared border, and the GDP of allied nations all have a positive impact on India's exports. The data show that distance has a negative influence on exports as well as gross domestic product. The data also shows that the country that shares a border with India has more trade flows.


Research Paper


International Journal of Legal Science and Innovation, Volume 4, Issue 2, Page 251 - 267


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