UNDERSTANDING INDIA-ASEAN TRADING TIES USING GRAVITY MODEL APPROACH

India's trade relations with ASEAN have been strengthened since 1991, as a part of her 'Look East Policy'. Her complementary economic structure with ASEAN involves significant mutual gains. THough, ASEAN's population is less than half of India, but their global trade is about four times of India. The trade dependence between India and ASEAN countries has been increased over the period. India's emerging relationship with the ASEAN is based on real time complementarities in the field as diverse as trade, investment, infrastructure, human resource development, science and technology, tourism and culture. A careful analysis of the trade patterns between these economies would not only suggest trade specialization, but also the directions for possible cooperation in the newer trade regime. In order to understand the bilateral trade ties between India and ASEAN countries gravity model has been employed.