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<strong>Pakistan</strong>’s <strong>Trade</strong> with <strong>India</strong>: Thinking Strategically<br />
accounts for 60 percent of global outsourcing in this sector (exports of<br />
computer and business services in 2008 were estimated at $52.3 billion).<br />
<strong>India</strong>n manufacturing, though not nearly as competitive as China’s, is<br />
beginning to gain strength in the international market. This is seen in<br />
Figure 5 in terms of the share of high technology exports in total manufactures<br />
exports. Figure 6, capturing three dimensions of manufactures<br />
exports, shows <strong>India</strong>’s emerging competitiveness compared to <strong>Pakistan</strong>’s<br />
more clearly. <strong>India</strong> has three manufactures groups in the northeast quadrant<br />
(chemicals, iron and steel, and pharmaceuticals), while <strong>Pakistan</strong> has<br />
figure 6: recent Performance of india and <strong>Pakistan</strong><br />
Manufacturers exports<br />
Annual growth of product's share in world's total exports in 2000–2007<br />
Positioning of <strong>India</strong>'s Major<br />
Manufactured Exports in 2007<br />
10.0<br />
8.0<br />
6.0<br />
Pharmaceuticals,<br />
3.1%<br />
Iron and steel,<br />
5.7%<br />
Annual growth of country's share in<br />
product's global exports in 2000–2007<br />
Note: The northeast quadrant in Figure 6 measures a country’s share in the export of goods<br />
(horizontal axis) whose share in total world exports (vertical axis) is rising. The size of<br />
the circle measures the share of that export in a country’s total exports. Thus the larger the<br />
number of exports in the northeast quadrant and the larger the size of the circle representing<br />
each export, the more competitive is the country in the international market.<br />
Annual growth of product's share in world's total exports in 2000–2007<br />
Positioning of <strong>Pakistan</strong>'s Major<br />
Manufactured Exports in 2007<br />
4.0<br />
Chemicals, 11.4%<br />
4.0<br />
Chemicals, 2.6%<br />
2.0<br />
Automotive<br />
products, 2.4%<br />
2.0<br />
0.0<br />
0.0<br />
-5% 0% 5% 10% 15% 20% -20% -10% 0% 10% 20% 30% 40% 50%<br />
-2.0<br />
-4.0<br />
Clothing, 6.7%<br />
-2.0<br />
Clothing, 21.4%<br />
-4.0<br />
Machinery and<br />
transport<br />
Telecommunications<br />
equipment, 0.4%<br />
Machinery and<br />
Textiles, 41.4%<br />
equipment, 4.5%<br />
-6.0<br />
-8.0<br />
Textiles 6.6%<br />
transport<br />
equipment, 11.6%<br />
-6.0<br />
-8.0<br />
Office and<br />
telecom<br />
equipment, 0.5%<br />
| 43 |<br />
10.0<br />
8.0<br />
6.0<br />
Pharmaceuticals, 0.6%<br />
Annual growth of country's share in<br />
product's global exports in 2000–2007