Trends in Indo-Sweden Bilateral Trade: An Analysis Based on Trade Intensity Approach

Abstract

Sweden and India represent two dynamic nations with unique economic structures, trade policies, and industrial landscapes that play a pivotal role in the global market. This paper aims to elucidate the robust and promising bilateral trade relations between India and Sweden, employing the Trade Intensity Index as a critical analytical tool to unveil the potential benefits of strengthening these ties. The study spans from 2004 to 2023, providing a rich historical context for thoroughly assessing evolving trade trends and patterns. Utilising secondary data sources, we meticulously analyse fluctuations in trade volumes, spotlighting the profound impacts of economic and policy shifts on these relationships. We have harnessed the power of Microsoft Excel, applying its advanced data processing capabilities to ensure the utmost accuracy and reliability of our findings. We rigorously scrutinised the trade dynamics between our nations through various statistical tools, particularly emphasising the independent t-test for hypothesis testing. These analyses reveal significant insights, suggesting a notable decline in both export and import intensities over the examined period. However, rather than view this as a setback, it presents an opportunity for strategic policy intervention. Our study offers valuable insights, encouraging policymakers to explore innovative avenues to revitalise and enhance future trade relations between India and Sweden, ultimately contributing to mutual economic prosperity.