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

Author

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  • Smitha Francis

    (Institute for Studies in Industrial Development, New Delhi)

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.

Suggested Citation

  • Smitha Francis, 2015. "INDIA’S MANUFACTURING SECTOR EXPORT PERFORMANCE DURING 1999-2013: A Focus on Missing Domestic Inter-Sectoral Linkages," Working Papers 182, Institute for Studies in Industrial Development (ISID).
    • Handle: RePEc:sid:wpaper:182
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    File URL: http://isid.org.in/pdf/WP182.pdf
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    References listed on IDEAS

    as
    1. Banga, Rashmi & Das, Abhijit, 2010. "Role of trade policies in growth of Indian manufacturing sector," MPRA Paper 35198, University Library of Munich, Germany.
    2. Biswajit Nag, 2011. "Trade liberalization and international production networks: Experience of the Indian automotive sector," STUDIES IN TRADE AND INVESTMENT, in: Mia Mikic & Mochamad Pasha (ed.), Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia, chapter 5, pages 100-130, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    3. Laurence Ball, 2014. "Long-term damage from the Great Recession in OECD countries," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 11(2), pages 149-160, September.
    4. Amsden, Alice H., 1992. "Asia's Next Giant: South Korea and Late Industrialization," OUP Catalogue, Oxford University Press, number 9780195076035.
    5. Shafaeddin, Mehdi, 2010. "Trade liberalization, industrialization and development; experience of recent decades," MPRA Paper 26355, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Sudhir Rana & Partha P. Saikia & Munim K. Barai, 2018. "Globalization and Indian Manufacturing Enterprises," FIIB Business Review, , vol. 7(3), pages 167-175, September.
    2. P.Govindan, 2020. "A Study On Growth And Impacts Of India’S Foreign Trade -An Engine For Entrepreneurship And Economic Development," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 20(2), pages 161-174.

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    More about this item

    Keywords

    India’s manufactured exports; trade policy; import dependence; industrial policy; export competitiveness; market shares; non-tariff barriers; domestic linkages.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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