The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Structural transformation depends not only on how much countries export but also on what
they export and with whom they trade. This paper breaks new ground in analyzing India's
exports by the technological content, quality, sophistication, and complexity of the export
basket. We identify five priority areas for policies: (1) reduction of trade costs, at and
behind the border; (2) further liberalization of FDI including through simplification of
regulations and procedures; (3) improving infrastructure including in urban areas to enhance
manufacturing and services in cities; (4) preparing labor resources (skills) and markets
(flexibility) for the technological progress that will shape jobs in the years ahead; and (5)
creating an enabling environment for innovation and entrepreneurship to draw the economy
into higher productivity activities.