MSMEs need govt push to benefit from comparative advantage over China-made consumer goods: Report

The government needs to give direct push to MSMEs to ramp up export of consumer goods to reap the benefits of India's comparative advantage over products made in China in the post-pandemic world, a report said.

India can look in the range of incremental exports growing by USD 20 billion (in the least favourable outcome) to a significant USD 193 billion jump in the five-year horizon, only if it builds its capabilities and captures share from China, according to SBI's Ecowrap report released on Thirsday.

Although, the revealed comparative advantage (RCA) for India is lower than China as far as capital goods exports are concerned, India can still capitalise on this opportunity to push its capital goods exports.

However, the bigger opportunity right now is in the consumer goods sector, in which India has an RCA greater than China, said the report.

Looking at the micro, small and medium enterprise (MSME) profile of the country in terms of the consumer goods sector, the biggest ...