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Journal of Income & Wealth (The)
Year : 2016, Volume : 38, Issue : 2
First page : ( 143) Last page : ( 157)
Print ISSN : 0974-0309. Online ISSN : 0974-0295.

Manufactured Exports and Intermediate Imports by Indian States: Analysis Based on ASI Plant Level Data

Veeramani C.1, Banerjee Purna2, Rajakumar J. Dennis3,*

1Indira Gandhi Institute of Development Research, Mumbai, Maharashtra, India, veeramani@igidr.ac.in

2Indira Gandhi Institute of Development Research, Mumbai, Maharashtra, India, purna@igidr.ac.in

3Economic and Political Weekly Research Foundation, Mumbai, Maharashtra, India

*Corresponding author email id: dennisraja@epwrf.in

JEL codes: F10, F13, F14, F43, F60, O19

Online published on 27 July, 2017.

Abstract

The question of state-level trade performance has assumed significance in India with subnational economies increasingly becoming responsible to deliver growth. Although several state governments have been implementing various schemes to promote exports, the central government launched a new scheme in 2002 known as Assistance to States for Developing Export Infrastructure and Allied Activities, the working of which is critically based on information pertaining to a state's export performance. A major handicap faced while analysing trade performance of states is the availability of data. Attempts have been made to construct state-wise exports using data of Directorate General of Commercial Intelligence and Statistics (DGCI&S), captured from shipping bills filed by exporters. However, state-wise import data are not provided by DGCI&S. The schedule of Annual Survey of Industries (ASI) administered by the Central Statistics Office for collecting industrial statistics at the factory level has Block I by which it attempts to capture material inputs directly imported. Using the available information from ASI, this paper provides aggregate estimates of manufactured exports and intermediate imports at the state level. While doing so, this paper works out trade orientation of states by examining import and export intensities. The paper also reports the ratio of net merchandise export earnings to state domestic product across states and over the years. Finally, we undertake an econometric analysis of the determinants of state-level imports of intermediate inputs.

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Keywords

States, Manufacturing, Imported inputs, Exports, Trade performance, trade intensities, export intensity, import intensity.

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