Foreign trade provides opportunity to the developing economies to come from fringes to the mainstream of World Trade. Among developing economies, East Asian Economies are emerging as the new destination of trade for whole of the world as well as for the Asian economies. India has a significant trade relation with East Asian Countries such as China, Japan, Hong Kong and South Korea which collectively recorded more than 10% share in India’s exports and imports while Hong Kong alone have a total trade of 1634.6 billion rupees in the year 2017-18 with India. Hong Kong has recorded 4.84% share in India’s total exports and 2.29% in India’s total imports for the year 2017-18. The present paper tries to measure Intra industry trade among India and Hong Kong for the study period 1996-97 to 2017-18. The paper is based on two-digit level data for India’s manufactured exports and imports to and from Hong Kong. The compound annual growth for whole of the study period revealed that the project goods; some special uses (98) and furskins and artificial fur, manufactures thereof (43) recorded highest growth rate in India’s total manufactured exports to and Fertilizers (31) recorded highest growth rate in India’s total manufactured imports from Hong Kong. The manufactured goods such as Natural Pearls (71), Organic Chemicals (29), Raw Hides and Skin (41), Electrical Machinery and Equipment (85) and Cotton (52) appeared as top four exports to and imports from Hong Kong for maximum years of the study Period. The combined share of all these top four goods remained more than 70% for the considered study period. Over the years, 1996-97 to 2017-18, India- Hong Kong weighted IIT increased from 25.25 to 74.87 for 68 two-digit level (HS Codes) Manufactured Products. For the year 1996-97, Nine products have recorded IIT more than 70% whereas fifteen products have recorded IIT more than 70% in the year 2017-18.

Keywords: Foreign Trade, Developing Economies, Electrical Machinery and Equipment.