Trade Flows between India and Other BRICS Countries: An Empirical Analysis Using Gravity Model

This article provides a detailed theoretical justification for the application of gravity model in the context of India’s trade relation with other BRICS countries. Based on 20 years data set from 1990 to 2010, the study finds that there is a positive relationship between gross national product (GNP)/ per capita GNP of the nation and its volume of trade. Also the study finds that where as the transport cost play a negative role in influencing foreign trade among BRICS nations, other variables related to foreign trade like exchange rate, inflation and import-GDP ratio does not play a major role in influencing it.