Research Scholar Department of Humanities and Social Sciences, National Institute of Technology, Tiruchirappalli, Tamil Nadu, India-620015. Email Id: augustinejoseph3@gmail.com, augustinejoseph147@gmail.com
Online published on 23 January, 2019.
The free trade agreement between India and ASEAN (AIFTA) came into existence in the year 2010. The agreement is expected to benefit India by creating positive terms of trade and welfare of the nation from cross-border trade. Even though a net gain is expected from exports, certain sectors of the economy especially the agriculture sector will be negatively affected. Natural rubber is going to be one of the crops that will incur an overall loss from the trade agreement. Here the paper tries to analyze the export earnings and production of natural rubber before and after AIFTA. Data on export earnings and production for the years 2000 to 2016 from rubber board of India is used in the study. The research uses compound annual growth rate (CAGR) to analyze the export, export earnings, price and production of natural rubber. It found that natural rubber in India is having a negative term of trade and welfare loss due to the agreement. There is a decline in the export earnings and production of natural rubber after the trade agreement. The compound growth rate is found to be negative for export earnings and production after the trade agreement.
AIFTA, Compound Annual Growth Rate, Export, Export Earnings, Production
