Template-Type: ReDIF-Paper 1.0
Author-Name: Arvind Subramanian
Author-Name-First: Arvind
Author-Name-Last: Subramanian
Author-Email: arvind.subramanian@ashoka.edu.in
Author-Workplace-Name: Department of Economics, Ashoka University
Author-Name: Shoumitro Chatterjee
Author-Name-First: Shoumitro
Author-Name-Last: Chatterjee
Author-Email: sc20@psu.edu
Author-Workplace-Name: Pennsylvania State University
Title: India’s Export-Led Growth: Exemplar and Exception
Abstract: Two new facts motivate this long-run assessment of India’s exports and growth. First, since the early 1990s, India has posted the world’s third-highest growth rate in overall and manufacturing exports, which has been critical to India’s overall growth performance. Contrary to perception, India has been an exemplar of the export-led growth model. Second, this aggregate performance has, however, co-existed with an underperformance in unskilled manufacturing exports. This has resulted in at least $140 billion in “missing” unskilled economic activity annually. A cross-country gravity perspective suggests that India is a “normal” exporter and importer of goods and services, but an under-exporter of manufacturing goods. Going forward, India’s unusual, endowment-defying specialization could limit export dynamism. Having not traversed them Lewis curve for unskilled manufacturing, the curve for skilled exports is threatening to turn up as skilled labor becomes scarce.
length: 35
Creation-Date: 20201002
Revision-Date: 
Publication-Status: 
File-URL: https://dp.ashoka.edu.in/ash/wpaper/paper42_0.pdf
File-Format: Application/pdf 
Number: 42
Keywords: Economic Development
Keywords: Exports
Keywords: Globalization
Handle: RePEc:ash:wpaper:42