International Outsourcing in China and India: A Sectoral Comparison Using Input-Output Analysis

Subject and purpose of work This study examines the extent of international outsourcing in China and India across the total economy and selected sectors, including industry, agriculture, manufacturing, services, and technology. Materials and methods The analysis uses Input–Output Tables from the OECD database for the years 1995, 2008, 2009, and 2018, applying established outsourcing indices to measure import dependency at sectoral and technological levels. Results Results indicate that outsourcing in India increased steadily until 2008/2009, while in China it followed a more fluctuating pattern. In both countries, outsourcing intensity is highest in the manufacturing sector. Technological classification reveals that China relies more on high-tech sectors, whereas India shows higher dependency in medium-high-tech and mediumlow-tech sectors. The findings also suggest that during periods of economic crisis, outsourcing dependency may expose production processes to vulnerabilities. Conclusions The study contributes to the literature by providing a comparative sectoral and technological assessment of international outsourcing in China and India using Input–Output data.