Abstract:- This paper examines the impact of product sophistication on the export performance of India’s organised manufacturing plants using ASI unit-level panel data for 2012–19. A plant-specific product sophistication score (PSS) is constructed by mapping plant-level NPCMS product codes to 6-digit HS PRODY values and aggregating sales-weighted PRODY across each plant’s product mix. Descriptive analysis shows modest aggregate gains in PSS, accompanied by considerable cross-sectoral heterogeneity. Econometric estimates based on random-effects Probit, Tobit and Heckman selection model reveal an inverted-U relationship between PSS and both export participation and export intensity. The results also revealed that ICT investment, ISO-14000 certification, imported input use, in-house R&D, and foreign equity share have a positive association with export outcomes.

(with Dr R. Rijesh)