Factories that become links in these chains have guaranteed sales and regular infusions of capital and technology. That s a glimpse of export paradise. Unfortunately, India is closer to trade purgatory. Let s start with how little value addition there is in India s exports. Indian goods are mainly dumb and dumber.
Studies repeatedly show resource based and labour intensive products dominate India s export basket.
These two categories represent the lowest form of value addition. One analysis showed they made up 76.7 per cent of India s 1995 exports, a snail paced improvement on 1980 s 82 per cent share. Only 23.3 per cent of India s exports were technology savvy. In comparison, 38.4 per cent of China s exports are high value. Four-fifths of Malaysia s exports are top of the line.