A Collaborative Study of Foreign Trade and Economic Performance of India With Southeast Asian Countries

A Collaborative Study of Foreign Trade and Economic Performance of India With Southeast Asian Countries

Samira Binte-Saif
DOI: 10.4018/978-1-7998-5774-7.ch014
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The Indian economy was in distress at the brink of the country's independence since 1947 from the colonial rule and partition. India was fulfilling the development needs of the colonial rulers. The state that should have been responsible for breakthroughs in agriculture and industry refused to play even a minor role in this regard. On the other hand, during the early 19th century before India's independence, the world was seeing India's accelerated development and expansion in agriculture, industry, health, and the economy. Based on the OECD's Economic Outlook 2021, the Indian economy contracted by 7.7% in 2020 as domestic consumption declined. Despite the COVID-19-related downturn, the OECD has projected India's economy to expand by 9.9% and become the fastest-growing G20 economy of the world. This is a collaborative study of India's economy and foreign trade with some Asian countries. This research reviews the factors accelerating the development of India's economy, achievements, and obstacles of India's growth of foreign trade and economic performance.
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India, a South Asian nation, is the seventh-largest country by area, the second-most populous democratic country with over 1.38 billion people of the world. India boasts of an immensely rich cultural heritage including numerous languages, traditions, religions, customs and people. The country holds its uniqueness in its diversity, and hence has adapted itself to international changes with poise and comfort. While the economy has welcomed international companies to invest in it with open arms since liberalization in the 1947s, Indians have been prudent and pro-active in adopting global approach, knowledge, and skills in their day-to-day operations. Since the green agriculture revolution and the white milk production revolution in India, the Indian farmers have proudly taken up farming, fishing, advanced agriculture and unique handicrafts as their profession on one hand, while modern industries and professional services sectors are coming up in a big way. India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships among with the developed and powerful countries of the world like U.S.A, Russia, Israel, and Saudi- Arab (Puri & Mishra, 2020).

The country is also attracting many global players for strategic investments owing to the presence of vast range of industries, companies, investment avenues and a supportive Government. Large youth population is a strong driver for demand for goods and services and an ample source of manpower for India. in India during the Colonial Rule

Though India has progressed far but still there are some problems associated with the development of Indian economy such as unemployment, poor educational standards, poor infrastructure, deterioration in the Balance of Payments, high levels of private debt, increased inequality, large budget and trade deficit and rigid labor laws.

Figure 1.

Aim of the chapter


The objective of this chapter is to draw inferences of Indian trade with some Southeast Asian countries – see figure-1. Following the introduction and literature review, methodology, data Analysis, discussion, recommendation, future research directions and conclusion section of the chapter is covered.


Literature Review

The Indian economy is characterized as a middle-income developing market economy in the entire world economy. It is the world's sixth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP) of the world. Apart from private consumption, India's GDP is also fueled by government spending, investment, and exports. Colonial rulers never made any significant changes for the benefit of the social sector of the country, and this hampered the productive capacity of the Indian economy. During independence, India’s literacy was only 17 percent, with a life expectancy of 32.5 years. Therefore, after independence, systematic organization of the economy was a real challenge for the government of that time. The need for delivering growth and development was the urgent need of the political leadership - as the country was riding on the promises and vibes of national fervor. Many important and strategic decisions were taken by 1956 by the Indian government, which are still shaping India’s economic journey. At a press conference, Finance Minister Arun Jaitley commented, “We keep oscillating between the fifth and the sixth largest economy, depending on the dollar rate. As we look at the years ahead, we will be $ 5 tn by 2024 and $ 10 tn by 2030 or 2031” (Sharma, 2019).

Key Terms in this Chapter

Coefficient of Variation: The coefficient of variation (CV) is a statistical measure of the relative dispersion of data points in a data series around the mean. The coefficient of variation (CV) is a measure of relative variability of data.

Export: Exports are the exchange of goods and services that are produced in one country and sold to buyers in another.

Import: An import is a good or service bought in one country that was produced in another country or state.

Regression Analysis: Regression Analysis is a set of statistical methods used in the estimation of relationship between a dependent variable and one or more independent variables of a research/analysis.

Trend Analysis: Trend analysis is a technique used in technical analysis that attempts to predict future value or price movements based on recently observed trend data for specific research.

India: The word “India” is a Western transliteration of the Sanskrit word “Sindhu”, meaning “body of water”. It specifically refers to what we know today as the Indus River, though the word could be used for any large body of water. India is a large peninsular region that is usually referred to as a subcontinent and is located in southern Asia south of the Himalayas between the Bay of Bengal and the Arabian Sea.

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