Abstract

Objectives: To examine the trade competitiveness of BRICS countries (Brazil, Russia, India, China and South Africa) and position of India among BRICS countries.

Methods/Statistical analysis: The paper has used secondary data for 12 indicators (i.e. trade balance-GDP, exports-imports and trade balance-total trade ratio, RCA, share of manufactured export, other manufactured goods, machinery & transport equipment and chemicals in total exports, share in world merchandise exports, intra industry trade and exports-GDP and trade-GDP ratio). Trade competitiveness of BRICS countries was examined by applying technique of factor-analysis and composite index for the three points of time 1995, 2005 and 2015.

Findings: 12 indicators of trade competitiveness found the relative position of India among BRICS countries. India has experienced increase in share in world exports in 2015 and India has competitiveness in the exports of manufactured goods, chemicals and other manufactured goods among the BRICS countries. But India is not globally open economy as compared to China and its trade was found to be in deficit in all the study points. Based on 12 indicator of trade competitiveness, composite index found China as the most competitive country followed by Russia, South Africa and Brazil. India was found to be the least competitive country among BRICS countries.

Application/Improvements: As India could not improve its position among BRICS countries, there is a need to adopt import liberalization strategy for promotion of exports to reduce trade deficit. Further, Export-led growth strategy should be followed to increase exports.

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Abstract

Objectives: To examine the internal and external performance of machinery and transport equipment (capital goods) in India.

Methods/Statistical analysis: The study has used secondary data for the production, exports and imports of machinery and transport equipment for the period 2000 to 2018. The compound annual growth rate (CAGR) of production and the growth rate of the industrial production index were used to examine the internal performance (domestic performance) of the goods. External performance (performance in world) of machinery and transport equipment has been examined by using export share in total exports, export-import ratio, CAGR of exports, export shares in world and revealed comparative advantage (RCA).

Findings: Though the production of all the products grew at positive CAGR except three products ‘Food Machinery Non-Domestic, Telecommunication, sound recording and ‘Ships and boats’. But still this sector showed a poor trade performance in 2018. India had trade deficit in 38 product categories out of 45 under SITC code. The production sector is unable to produce according to local requirements. As a consequence, demand for imported goods has increased and thus the trade deficit has also increased. The export share of these goods in the total composition of exports has increased since 1990. However, the share is very low compared to the developed countries in the world. The market share of India's total machinery and transport equipment goods in the world is very low and less than 1%. India has not been able to show a comparative advantage in the export of these goods.

Application/Improvements: India's performance in machinery and transport equipment is not as impressive as that of other advanced countries around the world. Government initiatives are needed to strengthen this sector. Research and development activities in the production sector should be carried out in order to improve the quality of these goods. Only skilled workers should be used. Infrastructure facilities should be improved.

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