Globalise to Localise: Exporting at Scale and Deepening the Ecosystem are Vital to Higher Domestic V

Thus, in the medium- to pursuing two inter-related goals simultaneously: long-run, these countries are in a stronger position increasing the scale of exports to the global to insist that firms achieve both greater scale and market (globalise) and boosting the ratio of have more domestic contents. [...] At India’s DVAratio in the electronics sector is one of the bottom end of the spectrum are countries the lowest in the world. [...] First, given the servicification of the manufacturing process, and the fact that Covid-19 pandemic has accelerated digitalization around the world, India appears to be in an C advantageous position to capture a larger part of the electronics supply DVA= 3X chain that is related to research, design, and development. [...] to underestimate the long-term benefits to While the destination is the same under both the economy from trade, through increased the scenarios – from point A to C – the policy productivity, job creation, and positive spill-overs underpinning the two approaches are very from a competitive electronics sector to the rest of 10 different. [...] employment, share of electronics production as a share of GDP, a dummy variable with a value of The dependent variable is DVAratio and the five 1 for natural resource exporters, and the GDP of independent variables in the basic regression the country.