Dynamic Comparative Advantage of India and China: A Study of Manufacturing Exports

This study analysed the dynamic export competitiveness of Indian manufacturing with China in the world market at HS 2-digit level classification. Dynamic RCA was utilised in this study for 2001-18. The study revealed that India was gaining a better dynamic competitive position of its manufactured exports in the world market than its Chinese counterpart. Besides this, the unfavourable dynamic position of lost opportunity included lesser Indian manufactured exports than China's. However, China took the lead in including a higher percentage of manufactured products in those dynamic positions that showed relatively higher responsiveness to the declining demand of the world.