Product Space Analysis and Industrial Policy: Identifying Potential Products for India's Export Expansion and Diversification

Abstract

The purpose of this paper is three-fold. One is to provide a simple presentation of the product space methodology, with its underlying conceptual framework, and the significant information base that is updated to remain reasonably current for policy analysis. This would be a good basis for generating greater interest of scholars and policymakers to follow up various ideas that can be examined using this approach. Second, is to identify a list of products that are more likely to be relevant for developing dynamic export opportunities for India. Third, as scholars and policymakers work on this database and use the policy space framework over time, experience will provide a basis for improvement in the database and understanding of this methodology to getting better insights to understand the links between capabilities and diversification of exports.