ANALYSIS OF INDIA’S TRADE RELATION WITH AFRICA

The paper applies basic and augmented gravity model to estimate India’s trade potential with different African countries. Panel data for the period 2010-2017 is employed in the analysis. The results obtained from the model are then used to predict trade potential between India and African Countries. Results reveal that India's trade potential is tremendous in these countries. However, some important obstacles account for the low level of trade between India and African countries which specifically include negligible market access, trade facilitation issues and asymmetric information. To reap the trade potential and to enhance trade between India and African countries, India should put effort.