An Overview of India’s Intra-Industry Trade

Amit Srivastava1 and Yaj Medury2

1Department of Professional Development, Jaypee University of Information Technology
Waknaghat, Solan – 173234, H.P., India
2Jaypee Education System, New Delhi, India


Intra-Industry Trade (IIT) is a simultaneous exports and imports of goods and services of the same industry and now it has become an integral part of the world trade. The present paper has tried to analyse the nature and pattern of India’s IIT at 6-digit level. The paper shows that, with the passage of time, not only the degree of IIT but also the contribution of IIT in total trade have increased significantly. The paper also reveals that, overall, India’s IIT is vertical in nature and decrease in tariff rate helped in increasing the degree of IIT.

Keywords: Intra-industry Trade, Horizontal and Vertical Intra-industry Trade, Import-weighted Average Tariffs