Study on Trade Pattern between Central Asian Countries and India

Abstract

India always had cultural and commercial linkage with Central Asian countries in past. However, in spite of these linkages, actual trade volume remained below potential after Independence of India. Since the beginning of the new millennium, the growing energy security needs compelled India to look for newer sources of energy products and the export basket of the five Central Asian countries, namely, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan fitted perfectly with this goal. This paper looks into the trade pattern between Central Asian Countries and India and it first discusses a brief account of the share of Central Asian countries (CAC) in India’s trade basket and then it analyzes the nature of products traded between India and five countries of CAC viz. Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. Major products exported and imported have been along with sectors with growing export inclination are identified.