Citation:

Md. Umar Farooque, Shahid Ahmed. "India’s Trade in Value-Added in Selected Industries: An Empirical Analysis" International Research Journal of Economics and Management Studies, Vol. 5, No. 3, pp. 155-164, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I3P119

Abstract:

This study examines India’s long-term assessment of export competitiveness by using Balassa’s revealed comparative advantage (RCA) indices in gross exports and upstream value-added exports at the aggregate and disaggregate levels of manufacturing and service industries, utilizing the OECD-TiVA database for the periods 1995, 2008, and 2018. The findings indicate that India’s RCA patterns in selected industries differ noticeably when measured in gross export versus value-added terms. The results show that, at the aggregate level, service industries based on gross exports and value-added (VA) demonstrate RCAs for all the selected years, while, at the disaggregate level, value-added shows more industries holding RCAs than the gross exports in manufacturing. The study also uses the Spearman rank correlation coefficient for all RCA indices to assess dynamic structural changes over a period of time. The findings indicate a minor structural change based on gross exports as well as value added. It may be concluded that developing domestic supply chains, local intermediate industries, technological upgrading, industry-specific incentives, infrastructure support, and trade facilitation will improve VA creation and competitiveness in the country.

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Keywords:

Gross Exports, VA, RCA, Global Value Chains, Structural Change, India.