Trends and patterns of india's high technology exports with special reference to pharmaceutical products

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Date

2014

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Publisher

Central University of Punjab

Abstract

Diversification of a country's exports plays an important role in the economic growth of the developing countries. These countries are trying to increase its exports by exporting high technology products and improve their ranking in the world trade. India is no exception to this. The present study is an attempt to examine the competitiveness of pharmaceutical exports in India's high technology exports, which is the largest sector amongst high technology commodities, with the US and Russian Federation by calculating different indices like Revealed Comparative Advantage (RCA), Revealed Symmetric Comparative Advantage (RSCA) and Intra Industry Trade (IIT) during 1991-2012. An attempt is also made to study some of the important issues of TRIPS related to India's pharmaceutical exports. An extensive research effort has been made to comprehend the composition and direction of India's Pharmaceutical exports with its top two export partners i.e. US and Russia using these indices. The empirical result of the study revealed that India has revealed comparative advantage in maximum pharmaceutical products with these two countries. The policy of the country regarding the international trade has under gone various changes since liberalization, as a result of the emergence of Trade Related Intellectual Property Rights (TRIPS). Further, the result of the study also explained that TRIPS has a positive impact on India's pharmaceutical exports. The study also revealed that domestic companies are more R&D oriented than foreign companies. The positive correlation of R&D expenditure and exports has been found in Indian Pharmaceutical companies. For India to become a top player in the global pharmaceutical business, the government of India needs to support foreign investments in pharmaceuticals sector in order to overcome the stiff competition in the global pharmaceutical market.

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Keywords

High technology, Patents, Revealed Comparative Advantage, Revealed Symmetry Comparative Advantage, Grubel Lloyd Index, Trade Related Intellectual Property Rights

Citation

Manisha& , kaur, Sandeep (2014) Trends and patterns of india's high technology exports with special reference to pharmaceutical products.