Manufactured Goods Lead Surge in Indian Exports

New York Times
July 25, 2011

When Ranjit Date returned to India 20 years ago after earning a doctorate in robotics from an American university, he hoped to help automate factory assembly lines in his home country.

His company, Precision Automation and Robotics India, has done that. But more recently it has also begun selling robots to Western manufacturers like Caterpillar, Ford and Chrysler. This year, in fact, a third of Precision Automation’s sales will come from exports, up from almost nothing five years ago.

Mr. Date’s company is emblematic of a recent surge in exports of engineered and other sophisticated goods from India — a country perhaps better known for exports of skilled services like software outsourcing.

But in fact, Indian exports of goods are now nearly double exports of services, growing 37.5 percent, to $245.9 billion, in the 12 months that ended in March. Leading the way are high-value products like industrial machinery, automobiles and car parts, and refined petroleum products.

Indian exports are following a different path from that taken by other Asian countries like Japan, Korea and China. Those countries started by exporting products like garments and toys made by large numbers of low-paid, low-skilled workers, before moving to more sophisticated products like cars and industrial machinery.
To read more click here...