Abstract
The most countries try to improve their advantage towards goods with high range of demand and sustainable trade such as industrial goods and merchandise. India embarked on the path of globalization in the early 1990s with the objective to attain a higher growth profile. This question can be brought up in which goods India has have comparative adventage. The aim of this study is to analyze comparative advantages of Indian's exports commodities during of post liberalsation in 1990-2014. The well-known index for determining trade advantage is revealed comparative advantage (RCA) by Balasa. The findings by India’s RCA in exports showed India has gained comparative advantage in a number of agriculture sector such as Food items, Textiles, Leather and other Manufactures.
Highlights
The concept of Revealed Comparative Advantage (RCA) has been developed by Balasa (1965) for improving Ricardo theory who had laid down the basic tenets of comparative advantage
India embarked on the path of globalization in the early 1990s with the objective of improving overall productivity, competitiveness and efficiency of the economy in order to attain a higher growth profile
India is a part of South Asian Association for Regional Cooperation (SAARC)
Summary
The concept of Revealed Comparative Advantage (RCA) has been developed by Balasa (1965) for improving Ricardo theory who had laid down the basic tenets of comparative advantage. India was one of the founding members of several international organizations, most notably the United Nations, the Asian Development Bank, G20industrial nations and the founder of the Nonaligned movement. India has made an extensive effort to liberalize its international trade since 1991 and the consequent increase in competitive pressures and technology transfers, is expected to have led to a restructuring of the economy such that the composition of exports reflects India’s comparative advantage in the global economy. It is important to explore the structure of comparative advantage of India and the extent to which the economic sectors can compete with others in the global market for manufacturing sector commodities. With Considering of economic data and information this question can be brought up that India in which commodities has comparative advantage. Competitive advantage concept and determination methods are provided in section three and followed by the summary and conclusion in the last section
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