Globalisation and Its Influence on Export Competitiveness of India: Insights from an ARDL Approach

The study examines the impact of globalisation, including political and economic, on the export competitiveness of Indian manufacturing from 1970 to 2023. The autoregressive distributed lag (ARDL) model has been utilised along with other econometric stability tests to study the long-run impact of sample variables on export competitiveness of Indian manufacturing. Findings indicate that economic globalisation is the least influential factor in bolstering India’s manufacturing competitiveness in the global arena. In contrast, political integration has yielded significant benefits in both the short and long term, alongside social globalisation. India’s experience underscores the importance of political integration and proactive foreign engagement in strengthening its global competitiveness. While the country has effectively developed diplomatic ties and attracted foreign investments, it still faces challenges related to economic globalisation, particularly within the manufacturing sector. Regulatory hurdles and limitations on foreign direct investment across various industries have hindered the growth of export-driven manufacturing. JEL Classification: F1, F18