Category-wise Export Concentration of Capital Goods in India

Abstract

This research examines the concentration of capital goods in Indian exports to determine the degree of export diversification and volatility. The study makes use of secondary data on the main categories of capital goods and concentration and instability indicators of the export patterns across time. The results show that small segments participate in capital goods exports, which are concentrated in a few categories. Exports in the less diverse categories, which are comparatively more susceptible to volatility, have less steady external market vulnerabilities. These findings indicate that the stability of exports may be impacted by an over-reliance on particular categories, which is why policies that encourage diversification, introduction, and focus on improving other segments should be put into place.