What is it about?
There is a general view that the export performance of India is unsatisfactory because of its low competitiveness, but no systematic attempt has been made to validate this view.
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Why is it important?
The results indicate that when nominal and real exchange rates appreciate, export price competitiveness (Relative Export Price [REP]) improves, but the competitiveness of profitability (Relative Profitability of Exports and Profitability of Exports Index) deteriorates.
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This page is a summary of: India's Trade Competitiveness and Exchange Rate Policy, Margin The Journal of Applied Economic Research, August 2008, SAGE Publications,
DOI: 10.1177/097380100800200302.
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