| ID | 147896 |
| Title Proper | Domestic value-added growth is vital |
| Other Title Information | are indian industries gaining by linking into value chains? |
| Language | ENG |
| Author | Gupta, Neha |
| Summary / Abstract (Note) | Gains under the global value chains (GVCs) depend on how much of a country’s domestic value added (DVA) is passing onto other countries. However, India’s manufacturing sector is found to be hollowing out, that is, its DVA growth is declining. This article estimates the linkages of manufacturing sector into GVCs, focusing on machinery and textiles industries. It measures foreign value added in exports and gains under GVCs using intercountry input–output tables of OECD–WTO Trade in Value Added (TiVA) database (2015). TiVA shows a decline in India’s share of DVA exports in its gross exports. However, India has ‘net gains’ from linking into GVCs in the two industries as the ratio of forward linkages to backward linkages is greater than one. This indicates that value-added exports are greater than value-added imports. Thus, India has enough potential to compete with other countries in the upper ends of value chains in both its machinery and textiles industries. |
| `In' analytical Note | South Asia Economic Journal Vol. 17, No.2; Sep 2016: p.271-294 |
| Journal Source | South Asia Economic Journal 2016-12 17, 2 |
| Key Words | Global Value Chains ; Gains from Trade ; Indian Industries ; Value-Added Trade ; Forward Linkages ; Backward Linkages |