Changing structure of India’s exports with Africa: Where do the technology-intensive exports stand?

Abstract

The present study is an endeavour to document the pattern of comparative advantage and structural changes of Indian exports with Africa with the help of revealed comparative advantage index and the constant market share model for the period 1980–2021. The results indicate that India possesses a comparative advantage in a large number of export products to markets in Africa. However, most of these exports belong to the category of low-tech and resource-based goods. Considering its abundant labour, it is to be expected for India to have a comparative advantage in these low-skilled and labour-intensive traditional exports. The commodities with maximum advantage in the African market are medicinal and pharmaceutical products followed by sugar, sugar preparations, and honey. In the category of technology-intensive products, India has strengthened its market power only in the export of organic chemicals and dyes, and colouring materials.

Keywords:

• exports
• technology
• RCA
• CMS

JEL codes:

• F10
• O3

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 The classic export products are those in which a country has invariable comparative advantage over the period of study.

2 Emerging products are those in which a country acquired a comparative advantage in recent times.

3 The export products in which India’s competitiveness appears to have deteriorated gradually.