Analysis of Trade and Technology Linkages through Value-Added Content in India’s Exports to SASEC Countries

This paper’s objective is to examine how India can utilise its unique strengths and competitive advantages to enhance its involvement in the regional value chains of SASEC nations. It entails analysing crucial sectors that can bolster India’s interaction with these countries, focusing on trade that adds value and the manufacturing sectors’ technological intensity. The study also delves into the trends and potential growth in trade, as well as diversification through value chain integration in the SASEC area, analysed using panel data spanning from 1995 to 2020. The findings detail the determinants of India’s exports to SASEC countries, including factors like backward and forward linkages, tariff rates, trade margins, the availability of skilled labour, and the ratio of intermediate versus final goods. The paper additionally outlines various scenarios for both high-tech and low-tech industries, thereby shedding light on India’s strengths and constraints in participating in specific sectoral value chains.