An Analysis of Trade Volume in a Globalised Regime in the Mountain State of Uttarakhand

The regional specificities and constraints of the mountain state of Uttarakhand make it distinct from the other regions with limited possibility of exporting of goods and services barring the niche products in which it has a comparative advantage. The manufacturing sector is not fully developed in Uttarakhand in spite of various initiatives undertaken. The dependence on imports in the state particularly manufactured commodities has been huge and maximum revenue comes from the tax levied by central and state governments both. The taxes on domestic sale levied by state governments with partial input credits are limited. To levy a tax on interstate transactions are vested with the Union Government, which has consigned it to the states, who control and manage it and levy on the basis of origin. The paper examines the current status of imports and exports in the state utilising the secondary data. The paper also examines the changes in the commodity wise composition and destination of imports and exports over time as well as import intensity and import elasticity.