Transforming Export Competitiveness: Technological Upgradation and Digitalization in the Indian Heating, Ventilation, and Air Conditioning Industry

This study investigates the impact of technological upgradation and digitalization on the export competitiveness of India’s Heating, Ventilation, and Air Conditioning (HVAC) industry. Drawing on a 23-year panel dataset from 51 low-and-lower-middle-income countries, the research employs econometric analysis using high-tech exports and broadband subscriptions as proxies. The findings reveal that technological upgradation—measured through medium and high-tech exports—has a statistically significant positive impact on export competitiveness. In contrast, digitalization, proxied by broadband subscriptions, shows no significant effect, suggesting that mere infrastructure is insufficient without deeper operational integration. The Indian HVAC sector, though poised for growth amid global demand and sustainability mandates, faces challenges such as limited R&D investment, inadequate digital adoption, and scale inefficiencies. The study proposes a theoretical framework linking technological advancement and digital readiness with competitive export performance, offering insights for policymakers and industry stakeholders. It underscores the need for strategic investments in innovation, sector-specific digital tools, and workforce development. By aligning macroeconomic data with sectoral realities, the research contributes to a nuanced understanding of how emerging economies like India can leverage technological transformation to boost global trade competitiveness.