India-Central Asia Economic Relations

Prospects and Challenges

By: Ishfaq Ahmad Malik

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Paperback | 5 November 2014

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Paperback
192 Pages

Dimensions(cm)
22.86 x 15.24 x 1.04

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For India, Central Asian Republics has enormous economic and strategic importance. The energy potential of Central Asia has an answer to the critical and growing energy needs of expanding Indian economy. At the same time, the Central Asian economies need boosting their services sector, like information technology, in which India enjoys comparative advantage. On many other counts, as well, both the economies could have great benefits in each other. Nonetheless, the harnessing of these potentials is contingent on the economic relations enjoyed by the two parties in case. This book seeks to explore the prospects and challenges faced by India and the Central Asian economies in building economic relations with each other. It discusses the current state of economic relations between the two regions and looks into the magnitude of trade, investment, and different variety of barriers that restrict their magnitude. It employs the gravity model to determine the trade potential between the two regions, and by using Balasa index, it seeks to specify the areas of comparative advantage at the product level. The book particularly focuses on the energy potential of the Central Asian countries with important implications for India. Lastly, the author enlists the challenges faced in building strong economic relations by the two regions and draws out from his analysis the subject relevant and highly needed policy options to be exercised.

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