an analysis for india and china - icrier

Figure 9: Sectors where India/China has comparative advantage
Miscellaneous
Manufactures
India
China
Machinery and
Equipment
84
85
86
97
91
92
94
02
08
09
11
12
13
13
15
17
23
24
Agricultural and
Allied Products
43
46
51
60
65
66
69
Manufactures Chiefly by
material
78
79
80
81
83
40
41
71
72
74
28
36
01 16
20
29
30
32
38
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Chemicals and
Plastics
Mineral and Mineral
Fuels
bold- sector in which India/ China has advantage only in 2003
italic-sector in which India/China has advantage only in 2000
7 Revealed Comparative Advantage According to Factor Intensity:
Manufacturing Sector
In this section, comparative advantage has been analyzed according to factor
intensity. The analysis has been undertaken for manufacturing sector in India and China
as in both the economies total exports are pre-dominantly from the manufacturing sector.
In 2003, 95 per cent of total Chinese exports comprised exports from the manufacturing
sector while for India the sector’s share in its total exports was 88 per cent.
7.1 Methodology
The factor intensity analysis has been undertaken using the SITC (Rev.3)
classification. The SITC has been developed by the United Nations with the intention of
classifying traded products not only on the basis of their material and physical properties,
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