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Indo-Russia Trade: An Evaluation ‎of Symmetry, Complementarity, ‎Intensity and ‎Similarity ‎

Dr. Nassir Ul Haq Wani, Dr.‎ Jasdeep Kaur Dhami and Dr. Neeru Sidana

Volume 3 Issue 1 | Mar 2020

DOI: 10.31841/KJEMS.2021.36

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Abstract

This article focuses on Indo-Russia trade relations and evaluates the ‎economic ‎performance of trade in terms of symmetry, complementarity, ‎intensity and similarity and ‎future prospects for Indo-Russia trade relation ‎and the change in the economic scenario over a ‎‎24-year period from 1995 ‎to 2018. The article attempted to evaluate Indo-Russia trade using ‎Thiel’s ‎symmetry criteria, trade complementarity index (TCI), export intensity ‎index (EII), ‎import intensity index (III), and export similarity index (ESI), ‎analysis in exports and imports in ‎different type of goods categorized on ‎the basis of their production. In terms of symmetry, trade ‎is increasingly ‎asymmetric for Russia-India and is much more visible during 1995 as ‎‎compared to 2018. Regarding trade intensity, there is a growing trend, as ‎the export intensity ‎index (EII) values for 24-year time period 1995–2018 ‎present an average value of 0.58, the ‎index value which is lower than 1, ‎which means a lower intensity of export trade of India with ‎its partner; ‎however, from 2005 onwards there has been a growth with respect to the ‎export ‎intensity values which were above 1. The highest import intensity ‎index (III) was registered in ‎year 2009 which was 9.095. The III values ‎registered from 1995 to 2011 were greater than 1, ‎showing a great intensity ‎of India’s import trade with Russia. Moreover, the declining ‎‎complementarity trend (in 2010 and 2018) is as a result of production ‎specialization. ‎Regarding export similarity of India against Russia, India ‎enjoys competitive edge in the basic ‎agricultural Commodities. During ‎‎2005-2010, the trend reversed as India’s exports were ‎getting much more ‎specialized and back in 2015 the trend of similarity remained in India’s ‎favor. ‎‎

JEL classification: F10, F17, F21, F24‎

Keywords: India, Russia, Exports, Imports, Symmetry