India-US Trade in Organic Chemicals: Assessing the Present, Potential and Prospects

The present study analysed the trade between India and the US in organic chemicals using the revealed comparative advantage (RCA) technique and the intra-industry trade (IIT) by applying the Grubel Llyod (GL) Index. At the disaggregate level, India has a greater number of comparatively advantageous organic chemicals in global as well as bilateral markets over the US. The study revealed that India holds a comparative advantage in 34 products out of 42 products of organic chemicals in the global market. The analysis of the GL Index revealed that both nations have IIT in many commodities of organic chemicals. The findings of the present study indicate the immense scope of trade in organic chemicals between India and the US. The present study suggests that India and the US should focus on policy formulation regarding trade in the chemical sector, specifically organic chemicals, by providing ease in tariffs, taxes, freight charges, etc.