A Study on the Export Competitiveness of Indian Industries

Abstract

Overtime with liberalization, International Trade has grown to be significant contributor towards foreign exchange and national income. While, Manufacturing and natural resource exports constitute two-third of the export basket remaining one-third comprises exports of services. The study aims at comparing the export competitiveness patterns in Indian industries and classifying the industries into various categories. In this study, the secondary data has been obtained from UNCTAD (United Nations Conference on Trade and Development), 2006. Using the empirical data from 88 Indian industries for the period 2010- 2016,the industries were classified as domestic dynamic, domestic static, global dynamic and global static based on Industrial specialization and growth. Balassa Index is used for the calculation of industry specialization in this study and Compounded Annual Growth Rate (CAGR) is used to calculate the industry growth. In this study two-way ANOVA (GLM univariate analysis) with level of significance as 5% is applied to the data in order to access the statistical significance and to classify the industries into four categories. The study found that the most of the industries in India are globally dynamic and focus on overseas market than domestic (home) market. The findings of this paper throw light on to the export competitiveness patterns of the Indian industries when compared with the world economy. The study concludes that majority of the industries are globally dynamic and measures can be taken to promote the growth rate of the industries further.