Assessing the export competitiveness of industries from Índia and Nepal - a cross-country analysis

Abstract

This study compares and analyses the export competitiveness of Nepal and India adopting a multi-dimensional framework to show export competitiveness in the industry. This research also emphasises the relative market importance of Indian and Nepalese industries to each other's marketplaces. To determine the export competitiveness of 97 industries in India and Nepal from 2010 to 2021, a multidimensional framework was used that takes into account industry specialisation, industry growth, and market size. According to the results of our study, approximately 68 per cent of Indian industries are dynamic, indicating that they are expanding, and 42 per cent of them are global, making them more specialised and export-oriented. However, the majority of Nepal's industries (72 per cent) are static, and their export growth rate is less than the average growth rate for the world. In addition, the research analyses realistic export opportunities for Indian and Nepalese industries in each other's markets based on relative market importance. Policymakers, government representatives, business executives, and industry leaders in both countries may use this study to focus their limited resources on the industries that could benefit from them the most. Although export competitiveness research is extensive and contemporary, it lacks some prospective stud areas, such as cross-country analyses of various industries. Using a multi-dimensional framework, this study analyses and categorises 97 industries in India and Nepal as static or dynamic in global and domestic regions.