INDIA’S MANUFACTURING SECTOR EXPORT PERFORMANCE DURING 1999-2013: A Focus on Missing Domestic Inter-Sectoral Linkages

Smitha Francis ()
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Smitha Francis: Institute for Studies in Industrial Development, New Delhi

Working Papers from Institute for Studies in Industrial Development (ISID)

Abstract: Despite the significant trade liberalisation carried out multilaterally as well as under various preferential trade agreements, India’s recent manufacturing sector export performance has been poor and been a matter of policy concern. The growing import dependence of the manufacturing sector is also problematic, not the least from the point of view of sustaining export performance. As global and technological challenges related to sustaining India’s export growth are continuously on the rise, the focus in this paper is on the core factors which underpin dynamic export competitiveness at the sectoral level. The paper focuses on eight selected major manufactured export sectors for undertaking detailed study, six of which are also India's largest manufactured import sectors. After analysing India's current export competitiveness in these sectors, the paper argues that the lack of continued momentum and even deterioration in the export performance in these major export sectors points towards the dire need to formulate strategic policies to achieve further domestic industrial upgradation. Given that Indian firms already face substantial import and export competition from extensive trade liberalisation, a strategic use of industrial policy tools aimed at improving domestic manufacturing and technological capabilities, which also addresses the market failures in inter-sectoral coordination by interlinking the demand for upstream and downstream industries domestically is required to improve India's export performance.

Keywords: India’s manufactured exports; trade policy; import dependence; industrial policy; export competitiveness; market shares; non-tariff barriers; domestic linkages. (search for similar items in EconPapers)
JEL-codes: F14 L50 L60 O25 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2015-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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