ABSTRACT
The emergence of the WTO has caused a major challenge to developing countries. For India, the dimension of this challenge is far more complex because of the diversified economic characteristics of the country. Policy formulation at the national level is almost impossible if states are not equipped to provide feedback to the centre. In this context, major sectors with trade potential have been identified for West Bengal with national trade data and state production data, as state trade data is not readily available. Data regarding regional trade is not very accurate, since the export data of the regions are computed on the basis of port-wise data. With this connection, a methodology is proposed in this chapter to estimate the regional trade potential. The existing production basket is matched with the potential export items from India for this purpose. Considering tariffs, non-tariff barriers and import penetration ratios for different countries, we identified high, low and medium potential products for West Bengal from the matched set of products. Chemicals, iron and steel, petroleum products, edible oil, jute, leather, horticulture and tea have been identified as the potential sectors for trade. Non-tariff barriers under the WTO is also highlighted for these sectors.
