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    Value Addition, Jobs and Skills: A Study of India’s Exports

    Das, Deb Kusum; Kukreja, Prateek | June 2020
    Abstract
    Exports serve as an engine of economic growth and can potentially help countries come out of poverty and unemployment. However, as the production process is increasingly getting fragmented globally, greater exports no longer imply higher domestic production, as imports of intermediate products used as inputs in exports also increase. Global Value Chains (GVCs) have now become a defining feature of trade in goods and services globally. Economic Survey 2019-20 also highlighted the importance of GVCs in India’s exports, by devoting an entire chapter, suggesting ways to integrate Indian firms into GVCs. With the advent of GVCs, the official trade data does not go very far in explaining the job creating aspect of exports. Further, technological changes are creating new occupations and jobs as the demand for workers with requisite skills is rising. At the same time, some existing jobs may be altered, reduced or eliminated. Therefore, besides assessing the extent of employment supported by India’s exports, it is also important to understand the skill composition of such jobs. In this regard, the present study looks at the trends in domestic and foreign value-added share, and employment and skill-composition of jobs supported by India’s exports between 2003-04 and 2013-14 using an Input-Output (I-O) table framework. The analysis highlights several interesting patterns. First, import content in exports has steadily increased from 15.9% in 2003-04 to 27.2% in 2013-14. Secondly, export related jobs grew at a much faster rate than overall employment during the period. Thirdly, a chunk of these jobs has gone to persons with below secondary education. While the rate of growth for these low skilled jobs has declined, we observe a sharp rise in the rate of growth of high skilled jobs supported by exports. Lastly, there is also a huge inter-sector disparity in the skill composition of jobs supported by exports, with agricultural exports supporting majorly unskilled and low-skilled jobs, whereas exports of services supporting mostly high skilled ones.
    Citation
    Das, Deb Kusum; Kukreja, Prateek. 2020. Value Addition, Jobs and Skills: A Study of India’s Exports. © Indian Council for Research on International Economic Relations. http://hdl.handle.net/11540/12168.
    Keywords
    Development
    Trade
    Development Goals
    Skills Development
    Sustainable Development
    Trade Flows
    Trade And Development
    Food Security And Trade
    Trade Volume
    Trade Potential
    Trade Flows
    External Trade
    Industrial policy
    New technology
    Innovations
    Industry
    Export policy
    Import policy
    Trade Unions
    Services Trade
    SMEs
    E-commerce
    Development assistance
    ADB
    Curriculum development
    Development assistance
    Development aid
    Development indicators
    Development potential
    Development models
    Project appraisal
    Performance appraisal
    Regional development bank
    Trade development
    Import volume
    Export volume
    Service industry
    Career development
    Vocational training
    Contract Labor
    Capital
    Business
    Communication in rural development
    Social participation
    Occupational training
    Partnership
    Joint venture
    System analysis
    Labor and globalization
    Labor policy
    Regional trading blocs
    Foreign trade and employment
    Developing countries
    Industrial priorities
    Technological innovation
    Technology transfer
    Foreign trade regulation
    Industrial relations
    Trade-unions
    Digital
    Global value chain
    Input output analysis
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/12168
    Metadata
    Show full item record
    Thumbnail
    Working_Paper_392.pdf (957.1Kb)
    Author
    Das, Deb Kusum
    Kukreja, Prateek
    Theme
    Development
    Trade

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    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise