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Firm Heterogeneity and India’s Manufacturing Exports: Lessons on Protection and Trade Theory

Husaindad Hassani and Sarath Chandran BP

The International Trade Journal, 2025, vol. 39, issue 4, 396-420

Abstract: Empirical examinations of heterogeneity among Indian manufacturing firms provide helpful lessons for trade theories and policies. Using descriptive statistics of cross-section data for 2011, 2015, and 2019, the asymptotic Wilcoxon-Mann-Whitney test, and regression analysis, the study reveals that firms are heterogeneous within each 4-digit National Industrial Classification (NIC) category, exporting firms are more productive than non-exporters, and exporter premia decline with trading activities. The study concludes that recent protectionist policies reduced extensive trade margins, firm heterogeneity, and productivity in the Indian manufacturing sector.

Date: 2025
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DOI: 10.1080/08853908.2024.2410430

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