This paper analyses the impact of the Indian reforms of the early 1990s
on exports and employment by using indicators of competitiveness
and comparative advantage. These indicators are unit cost ratios,
which differ by using domestic prices, international or export prices
and shadow prices. They are broken down into cost components
which show the sources of competitiveness or the lack of it, such
as productivity or price and cost distortions. The changes in
competitiveness following the reforms are then used to examine whether
the export and employment performance of the manufacturing industries
can be attributed to the reform-induced cost changes.