an analysis for india and china - icrier
an analysis for india and china - icrier
an analysis for india and china - icrier
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2003 in terms of the number of commodities <strong>for</strong> which India enjoys comparative<br />
adv<strong>an</strong>tage. (Refer Appendix Table A.14 <strong>an</strong>d A.15).<br />
Table 7.3 : Top science based m<strong>an</strong>ufactures in which India is adv<strong>an</strong>tageously placed<br />
R<strong>an</strong>k SITC Description<br />
1 54 Medicinal <strong>an</strong>d pharmaceutical producrs<br />
3 88 Photographic apparatus, equipment <strong>an</strong>d supplies <strong>an</strong>d optical goods, n.e.s.; watches <strong>an</strong>d<br />
clocks<br />
4 75 Office machines <strong>an</strong>d automatic data-processing machines<br />
2 87 Professional, scientific <strong>an</strong>d controlling instruments <strong>an</strong>d apparatus, n.e.s.<br />
Factor Intensity Analysis at the Three Digit Level<br />
At the three-digit level, three classification systems have been adopted. These are<br />
the ETA, WDI <strong>an</strong>d the hwwa matrix. The WDI system provides the most comprehensive<br />
classification as it is based on details relating to hum<strong>an</strong> capital, technology <strong>an</strong>d capital<br />
intensity of the m<strong>an</strong>ufactured commodities. ETA <strong>an</strong>d hwwa are, on the other h<strong>an</strong>d broad<br />
classifications. ETA classifies commodities as per their intensity of natural resources,<br />
unskilled labor, technology or hum<strong>an</strong> capital. The technology intensive commodities are<br />
further classified as either medium or high technology using the hwwa world matrix of<br />
classification. In this section, a brief review of the trends using ETA <strong>an</strong>d hwwa are first<br />
presented, followed by <strong>an</strong> <strong>an</strong>alysis in detail of India’s international specialization<br />
according to factor intensity based on the WDI system.<br />
Comparative adv<strong>an</strong>tage based on ETA Classification<br />
According to the ETA system of classification, of the 1512 SITC m<strong>an</strong>ufactured<br />
commodities <strong>for</strong> which comparative adv<strong>an</strong>tage <strong>for</strong> India has been observed, 489<br />
commodities are unskilled labor intensive, 412 commodities are technology intensive,<br />
293 commodities are hum<strong>an</strong> capital intensive <strong>an</strong>d 95 are natural resource intensive. The<br />
maximum adv<strong>an</strong>tage <strong>for</strong> India in 2003 there<strong>for</strong>e lies in the category of unskilled labour<br />
intensive m<strong>an</strong>ufactured goods. While the number of commodities <strong>for</strong> which India enjoys<br />
comparative adv<strong>an</strong>tage in each category has increased in comparison with that in 2000,<br />
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