an analysis for india and china - icrier

the maximum advantage for India is still observed for commodities that are intensive in
unskilled labour.
Table 7.4 : India’s comparative advantage in terms of factor intensity based on ETA
2000 2003
Human Capital 247 293
Natural resource 74 95
Technology 371 412
Unskilled labour 455 489
Unclassified 43 49
The 412 commodities classified as technology intensive according to ETA are
further characterized as medium and high technology intensive manufactures using hwwa
world matrix system. Based on this, 24 commodities are identified as intensive in high
technology and 154 as medium technology intensive manufactures.
Comparative Advantage based on WDI Classification
According to the more comprehensive WDI system of classification, 69 items are
classified as intensive in high technology and human capital. Within this 53 items are
intensive in physical capital, and 16 items can be classified as intensive in labor capital.
The dominant items in the category of high technology, human and physical capital are
medicinal and pharmaceutical products (SITC-541) and other organic chemicals (SITC-
516). In the category of high technology, human capital and labor intensive goods the
dominant share is of the electrical machinery and apparatus (SITC-778), which is
otherwise classified as medium skill and technology by the ETA system. 36 commodities
are classified as low technology and human capital intensive, of which 10 are intensive in
labour. Musical instruments and parts and accessories thereof has a dominant share in this
category. Commodities are almost uniformly distributed across industries like starches,
inulin and wheat gluten; albuminoidal substances; glues, rotating electric plant, and parts
thereof, n.e.s, and perfumery, cosmetic or toilet preparations (excluding soaps). In the
category characterized as medium technology, human capital, and capital intensive
comprising of 145 products, SITC-523, i.e. metal salts and peroxysalts of inorg. has a
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