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Has India achieved its potential in merchandise exports?

Author

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  • Raghuvir Kelkar
  • Kaliappa Kalirajan

Abstract

Recently Varghese (2018), in his report to the Department of Foreign Affairs and Trade of the Commonwealth of Australia, remarked that till 2035 India will be in the list of top three economies and will be in Asia’s top three trading partners for Australia. In this context, the research questions addressed in this paper are: What is the current efficiency level of India in exporting its merchandises; What constraints does India have to overcome to improve its export efficiency; and Has the governance structure of the ‘majority government’ played an effective role in rigorous opening up to improve its export efficiency. The empirical analysis covering the period 2001 to 2019 indicates that on average India’s export efficiency with its trading partners worked out to be about 80%. The empirical analysis has identified human capital, physical capital, and ‘majority government’ as important factors contributing to improvement in India’s export efficiency.

Suggested Citation

  • Raghuvir Kelkar & Kaliappa Kalirajan, 2021. "Has India achieved its potential in merchandise exports?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 26(2), pages 271-292, April.
    • Handle: RePEc:taf:rjapxx:v:26:y:2021:i:2:p:271-292
    DOI: 10.1080/13547860.2021.1915546
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