What is unclear is how much of this internal trade is natural and how much a result of a perverse indirect tax system. The trade intensity of both these economies has come down sharply since world trade started contracting a few years ago, but India continues to maintain its lead over China on this front. And trade barriers are an invitation to poverty. The case for even more internal trade is also a solid one. Internal economic integration as well as fewer barriers to international trade should be key policy concerns in the years ahead.

Source: Mint February 19, 2017 17:56 UTC