What is Blue Economic Passage

The chapter focuses on the revealed comparative advantage (RCA) that India and China may have (or not) with the Arctic region vis-à-vis certain marine and mineral resources. The outcomes will indicate where and how India and China could look to maximize trading potential, other than natural gases. The study applies a multi-country and multi-commodity Ricardian trade model and utilizes the Balassa Index to examine the revealed comparative advantage of select fish and minerals available at the Arctic. The study finds that there is considerable comparative advantage that the Arctic enjoys in terms of export of salmon/trout/cod and palladium vis-à-vis India and China. India and China both have a lot to gain by positively contributing towards intensification of partnerships among the governments for sustainable management of the resources. The focus should be on effective cooperation among the states in addressing illegal, unreported, and unregulated (IUU) fishing and to promote human development by supporting and safeguarding the small-scale actors in both mining and fishing sectors.