Effects of Free Trade Agreement on Indo-China Trade

Abstract

Given the nature of huge trade inflows into the Indian market from the China this paper tries to shape up the possible effects that a free trade agreement between these trading giants will have. In addition to a general overview of how trading relation has gone about in the last decade we will try to magnify into the fact that whether the proposed FTA agreement between India and China will lead to any welfare gains for India or not.

Keywords: Indo-China FTA, tariff rates, gravity model

JEL Classification: F13, F17