ABSTRACT
This chapter analyses the effects of global crises on Iran India trade relations. Iran and India have stressed developing intimate collaborations that pave the way for joint venture expansion and greater capital mobility as well as exchanging technological innovation, which can greatly facilitate trade growth. It has been frequently recognized that Iran possesses limited non-oil exportable goods when compared with India. Given the prominence of India among Iran's trade partners, computing the level of bilateral intra-industry trade (IIT) provides interesting insights on the exchange of intermediate tradable goods that can play significant role in a potential free-trade implementation. The Grubel-Lloyd (GL) index has been computed employing Equation by using data on bilateral trade at the Harmonized System (HS) two-digit level. Trade structure cannot be predicted only by the traditional theory of trade because Ricardian and Hecksher-Ohlin types of trade models explain the nature of trade by supply-side differences, while the demand side plays an equally important role.
