DETERMINANTS OF EXPORT PERFORMANCE AND COMPETITIVENESS OF INDIAN BUSINESSES IN GLOBAL MARKETS

Abstract

This paper examines how productive capacity, investment, foreign direct investment (FDI), digital access, and innovation relate to India’s export performance and competitiveness. Because no comparable firm panel was available, this national secondary-data analysis does not interpret macro aggregates as firm-level observations. World Bank WDI provides export, manufacturing, investment, FDI and internet series for 1991–2024. Competitiveness is measured as India’s share of world merchandise exports. R&D, high-tech exports and logistics are descriptive only because their coverage is shorter or intermittent. India’s merchandise exports rose from US$17.7 billion in 1991 to US$442.9 billion in 2024, while its world share increased from 0.50% to 1.80%. Current-dollar export CAGR was 10.2%, compared with 6.0% globally. India’s share peaked at 1.81% in 2022 and was 1.80% in 2024. High-technology goods rose from 9.6% of manufactured exports in 2009 to 18.6% in 2024, while manufacturing value added fell from 17.1% of GDP in 2008 to 13.1% in 2024. A first-difference OLS model (n=32; 1993–2024) explains 9.0% of annual export-share variation; changes in manufacturing, investment, FDI and internet use are individually nonsignificant using HC3 standard errors. This aggregate null does not imply capability irrelevance: Indian firm-level studies identify innovation, productivity, imported inputs and logistics as relevant. Overall, India’s long-run export presence and technology composition improved, but short-run macro correlates are weak. Findings are descriptive, not causal, and motivate firm- and sector-panel research. This provides a useful national benchmark.

Authors & Affiliations

* Corresponding Author. Author contact details are available in the published PDF article as per journal policy.

Keywords & Indexing Terms

Download Center

Indexing & Verification

G Google Scholar Check indexing visibility by DOI Crossref / DOI Verify permanent DOI record ORCID Author identifier support Open Access Free reader access Indexing Ready Scholar metadata compatible OAI-PMH Metadata harvesting ready Article Metrics Views & download analytics

Article Metrics

Metrics are indicative and may update periodically after indexing, downloads and citation tracking are enabled.

Article Integrity & Transparency

License & Copyright

© 2026 The Author(s). The author(s) retain copyright and grant the journal the right of first publication. This work is licensed under the Creative Commons Attribution-NonCommercial 4.0 International License .

How to Cite

PDF Preview

If the PDF preview does not load on your device, open the PDF directly or use the Download PDF button. Open PDF in new tab

Declarations

Publisher's Note

References

Showing first 3 references. Click “Show All References” to view complete list.

1. [1] World Bank, “World Development Indicators,” Washington, DC, USA, 2026.
2. [2] M. E. Porter, The Competitive Advantage of Nations. New York, NY, USA: Free Press, 1990.
3. [3] B. Balassa, “Trade liberalisation and ‘revealed’ comparative advantage,” The Manchester School, vol. 33, no. 2, pp. 99–123, May 1965, doi: 10.1111/j.1467-9957.1965.tb00050.x.
4. [4] D. Hummels and P. J. Klenow, “The variety and quality of a nation’s exports,” American Economic Review, vol. 95, no. 3, pp. 704–723, Jun. 2005, doi: 10.1257/0002828054201396.
5. [5] Government of India, Ministry of Commerce and Industry, Department of Commerce, Annual Report 2023–24. New Delhi, India, 2025. [Online]. Available: https://www.commerce.gov.in/files/2025-04/Annual-Report-English-Lower-Resolution-1.pdf. Accessed: Oct. 13, 2026.
6. [6] Directorate General of Foreign Trade, Foreign Trade Policy 2023. New Delhi, India: Ministry of Commerce and Industry, Government of India, 2023. [Online]. Available: https://dgft.gov.in/CP/?opt=ft-policy. Accessed: Oct. 13, 2026.
7. [7] J.-F. Arvis, L. Ojala, B. Shepherd, D. Ulybina, and C. Wiederer, Connecting to Compete 2023: Trade Logistics in an Uncertain Global Economy—The Logistics Performance Index and Its Indicators. Washington, DC, USA: World Bank, 2023, doi: 10.1596/39760.
8. [8] Directorate General of Commercial Intelligence and Statistics, “A quick view of India’s trade scenario: Calendar year 2024,” Commercial Intelligence Division, Ministry of Commerce and Industry, Government of India, Kolkata, India, Aug. 2025. [Online]. Available: https://www.dgciskol.gov.in/writereaddata/Downloads/20250819155439A%20Quick%20View%20of%20Indias%20Trade%20Scenario.pdf. Accessed: Oct. 13, 2026.
9. [9] N.-E. Aaby and S. F. Slater, “Management influences on export performance: A review of the empirical literature 1978–1988,” International Marketing Review, vol. 6, no. 4, pp. 7–26, 1989, doi: 10.1108/EUM0000000001516.
10. [10] S. Zou and S. Stan, “The determinants of export performance: A review of the empirical literature between 1987 and 1997,” International Marketing Review, vol. 15, no. 5, pp. 333–356, 1998, doi: 10.1108/02651339810236290.
11. [11] C. M. P. Sousa, F. J. Martínez-López, and F. Coelho, “The determinants of export performance: A review of the research in the literature between 1998 and 2005,” International Journal of Management Reviews, vol. 10, no. 4, pp. 343–374, 2008, doi: 10.1111/j.1468-2370.2008.00232.x.
12. [12] J. Chen, C. M. P. Sousa, and X. He, “The determinants of export performance: A review of the literature 2006–2014,” International Marketing Review, vol. 33, no. 5, pp. 626–670, 2016, doi: 10.1108/IMR-10-2015-0212.
13. [13] L. C. Leonidou, C. S. Katsikeas, and S. Samiee, “Marketing strategy determinants of export performance: A meta-analysis,” Journal of Business Research, vol. 55, no. 1, pp. 51–67, 2002, doi: 10.1016/S0148-2963(00)00133-8.
14. [14] K. Sharma, “Factors determining India’s export performance,” Journal of Asian Economics, vol. 14, no. 3, pp. 435–446, 2003, doi: 10.1016/S1049-0078(03)00036-8.
15. [15] T. A. Bhavani and S. D. Tendulkar, “Determinants of firm-level export performance: A case study of Indian textile garments and apparel industry,” The Journal of International Trade & Economic Development, vol. 10, no. 1, pp. 65–92, 2001, doi: 10.1080/09638190122431.
16. [16] A. B. Bernard and J. B. Jensen, “Exceptional exporter performance: Cause, effect, or both?,” Journal of International Economics, vol. 47, no. 1, pp. 1–25, 1999, doi: 10.1016/S0022-1996(98)00027-0.
17. [17] A. B. Bernard, J. B. Jensen, S. J. Redding, and P. K. Schott, “Firms in international trade,” Journal of Economic Perspectives, vol. 21, no. 3, pp. 105–130, 2007, doi: 10.1257/jep.21.3.105.
18. [18] M. J. Melitz, “The impact of trade on intra-industry reallocations and aggregate industry productivity,” Econometrica, vol. 71, no. 6, pp. 1695–1725, Nov. 2003, doi: 10.1111/1468-0262.00467.
19. [19] B. Goldar, “R&D intensity and exports: A study of Indian pharmaceutical firms,” Innovation and Development, vol. 3, no. 2, pp. 151–167, 2013, doi: 10.1080/2157930X.2013.828878.
20. [20] S. S. Pattnayak and S. M. Thangavelu, “Productivity and learning-by-exporting: A firm-level analysis of Indian manufacturing,” The World Economy, vol. 37, no. 7, pp. 1016–1026, 2014, doi: 10.1111/twec.12136.
21. [21] C. Sharma and R. K. Mishra, “Does export and productivity growth linkage exist? Evidence from the Indian manufacturing industry,” International Review of Applied Economics, vol. 25, no. 6, pp. 633–652, 2011, doi: 10.1080/02692171.2011.557046.
22. [22] C. Sharma, “Exporting, access of foreign technology, and firms’ performance: Searching the link in Indian manufacturing,” The Quarterly Review of Economics and Finance, vol. 68, pp. 46–62, 2018, doi: 10.1016/j.qref.2017.11.015.
23. [23] M.-A. Véganzonès-Varoudakis and P. Plane, “Innovation, exports, productivity and investment climate: A study based on Indian manufacturing firm-level data,” Applied Economics, vol. 51, no. 41, pp. 4455–4476, 2019, doi: 10.1080/00036846.2019.1591606.
24. [24] S. Ramaiah and G. K. Roy, “Determinants of exports behaviour of India’s agro-processing firms: Role of technology, imported raw materials and logistics infrastructure,” Vision: The Journal of Business Perspective, vol. 25, no. 2, pp. 201–208, 2021, doi: 10.1177/0972262920981440.
25. [25] M. Grazzi, N. Mathew, and D. Moschella, “Making one’s own way: Jumping ahead in the capability space and exporting among Indian firms,” Journal of Evolutionary Economics, vol. 31, pp. 931–957, 2021, doi: 10.1007/s00191-020-00718-z.
26. [26] P. K. Sahoo, B. N. Rath, and V. Le, “Nexus between export, productivity, and competitiveness in the Indian manufacturing sector,” Journal of Asian Economics, vol. 79, Art. no. 101454, 2022, doi: 10.1016/j.asieco.2022.101454.
27. [27] S. S. Jana, T. N. Sahu, and K. D. Pandey, “How far is FDI relevant to India’s foreign trade growth? An empirical investigation,” Journal of Economic Structures, vol. 9, Art. no. 30, 2020, doi: 10.1186/s40008-020-00212-6.
28. [28] D. Chakraborty, J. Mukherjee, and J. Lee, “FDI inflows influence merchandise exports? Causality analysis for India over 1991–2016,” Global Economy Journal, vol. 17, no. 3, Art. no. 20170020, 2017, doi: 10.1515/gej-2017-0020.
29. [29] P. Tripathy, P. Behera, and B. R. Mishra, “Study of linkages between productivity, export, and outward foreign direct investment: An empirical perspective of Indian manufacturing industries,” International Journal of Finance & Economics, vol. 28, no. 2, pp. 1527–1548, 2023, doi: 10.1002/ijfe.2492.
30. [30] S. K. Mangla and C.-H. Yang, “Spillover effects of foreign direct investment on firms’ exports: Evidence from India,” The World Economy, vol. 48, no. 7, pp. 1616–1629, 2025, doi: 10.1111/twec.13719.

Related Articles