Economic Analysis of Bilateral Trade: A Case Study of India-Mongolia

Abstract

India has enormous potential for bilateral relations with Mongolia (strategically important East Asian country) that shares its borders with China and Russia. The two countries also agreed to explore the possibility of launching direct air connectivity between New Delhi and Ulaanbataar of Mongolia. Mongolia initiated the construction of its first strategically important oil refinery, financed by India in the province of Dornogovi, in the south. The volume of trade between India and Mongolia has also grown at a faster pace in recent years. However, compared to its limited potential, the current economic commitment is limited to the mineral trade only. The paper analyses the structural dimensions of India’s bilateral trade with Mongolia, India’s trade balance with Mongolia, as well as providing new areas of India’s trade with Mongolia.