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| Article Name : | | | ESTIMATING INDIA’S TRANSPORT COST IN NEW TRADE THEORY | | Author Name : | | | Shelly Gupta | | Publisher : | | | Ashok Yakkaldevi | | Article Series No. : | | | ROR-1384 | | Article : | |  | Author Profile | | Abstract : | | | India has always witnessed the problem of rising trade deficits. Though exports have increased over the years, rising demand for inelastic imports (particularly crude oil and gold) more than the exports puts the trade deficit number in negative. However, high transportation costs continues to prohibit trade and increases the cost of imports (in the same way as tariff does). A higher trade deficit impacts several key macroeconomic variables of the economy like exchange rates, interest rates etc. and hence the growth of the economy. The aim of this paper is to analyze India’s transportation cost with its trade partners and then see how its imports are affected by it. | | Keywords : | | - prohibit ,prohibit ,prohibit ,prohibit ,
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