Explanation:

 There is a growing literature that documents the emergence of exports superstars—firms that account for a disproportionately large share of exports. For example, in a sample of 32 countries, Freund and Pierola (2013) find that the top 1 percent of exporting firms account for over 50 percent of exports. Further, it is argued that having and fostering bigness influences the sectoral composition of exports and also helps create comparative advantage and improve long-term prospects. This is in contrast to the more conventional, Schumacherian view that argues for the virtues of smallness, especially small and medium enterprises.

New findings on firm level concentration of exports and compare them with a few other major countries. The results are striking. Export concentration by firms is much lower in India than in the US, Germany, Brazil, or Mexico.The implications of such an “egalitarian” Indian export structure are unclear. The evidence cited earlier argues in favor of superstars, because they are dynamic and their expansion can have spillover effects on other firms. But concentration can have disadvantages, including impeding competition.