The Study of Effectiveness of FTA Between India and ASEAN on International Trade Relations Between India and ASEAN

Foreign trade is essential element of economic planning for development. It is an instrument to effect the necessary changes in the factor-endowments of the developing economies. New developments in this direction include: the integration of countries into trade blocs (e.g., European Union, NAFTA, EFTA, CEFTA, ASEAN) and globalization. Many developed and developing countries have actively formed regional groupings to enhance their trade and development objectives. India is also developing economic and trade relations through bilateral negotiation and various promotional activities. India also has established the trade relationship with a major trading block of South East Asia i.e. ASEAN. ASEAN and India have established a free trade area. The current study finds out the effectiveness of FTA between India and ASEAN. The researcher has studied the effectiveness of FTA by comparing the exports, imports and trade growth between India and ASEAN before and after the trade agreement.