CHANGING PATTERN OF INDIA’S HIGH TECHNOLOGY EXPORTS: A STUDYOF COMPETITIVENESS OF PHARMACEUTICAL PRODUCTS

Abstract

Export earnings of India have increased substantially over the years. For active participation in the global trading system export diversification is essential. Export diversification plays a main part in the economic growth of the developing countries. These countries try to improve place at the global level by increase its exports by exporting high technology products. India is no exception to this. The present study makes trying to look at the strength of pharmaceutical exports in India’s high technology exports with the US and Russian Federation with the help of different indices like Revealed Comparative Advantage (RCA), Revealed Symmetric Comparative Advantage (RSCA) and Intra-Industry Trade (IIT) during 1991-2012. The empirical result of the study revealed that India has the maximum comparative advantage in pharmaceutical products with the US and Russian Federation. Further, the result of the study also highlights the positive impact of TRIPS on India’s pharmaceutical exports. The study also finds that domestic companies are more R and D oriented than foreign companies. For India to become a top player in the international business of pharmaceutical sector, the government of India needs to sustain foreign investments in pharmaceuticals sector so that it would help to meet the practical knowledge and to generate employment.