• Saloni Killedar

The bilateral relationship between India and ASEAN are increasing, hence, this study makes an attempt to analyse the trade between India and ASEAN countries. The trade is analysed by using the gravity model approach which was first introduced by Tinbergen in 1962. The main objective is to capture the effect of exports of India after the Act East Policy was introduced in 2014. This is captured by introducing a dummy variable, and all the essential variables of the gravity model like GDP per capita of both India and ASEAN countries, distance and the dummy of Act East Policy was introduced. A fixed effect model was run for the analysing the trade and GDP per capita and Act East policy’s dummy showed significant results, which clearly indicates that India’s exports have decreased after the Policy was introduced. The distance between both the countries is shown by a radar diagram, and it was concluded that distance between India and ASEAN is not a significant factor in determining trade.

Bilateral Trade, India and ASEAN, Gravity model, Act East Policy

" A STUDY OF BILATERAL TRADE BETWEEN INDIA AND ASEAN COUNTRIES", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 5, page no.596-610, May-2019, Available :http://www.jetir.org/papers/JETIR1905A95.pdf

" A STUDY OF BILATERAL TRADE BETWEEN INDIA AND ASEAN COUNTRIES", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 5, page no. pp596-610, May-2019, Available at : http://www.jetir.org/papers/JETIR1905A95.pdf