India-Tanzania Trade Horizons: Unveiling Opportunities Through Revealed Comparative Advantage

Abstract

The aim of this study is to explore the trade dynamics between India and Tanzania, utilizing a comprehensive data set that spans from 2004 to 2023. The empirical findings indicate that the growth rate (2.05) of India-Tanzania’s share within India’s total trade with the world, over the years 2004 to 2023 is higher than the growth rate (1.66) of India’s total trade’s share within the world’s total trade. Likewise, the growth rate of (2.6) India-Tanzania’s trade share within Tanzania’s total trade with the world over, the years 2004 to 2023 is higher than the growth rate (1.6) of Tanzania’s total trade value within the world’s total trade value. An analysis of the competitiveness of both nations in their traded goods was conducted using Bilateral Revealed Comparative Advantage, revealing a significant comparative advantage with higher values. The article discusses the recent initiatives undertaken by both governments to enhance a broad spectrum of bilateral cooperation, which could further stimulate trade between the two nations.