Sectoral competitiveness refers to the ability of an industry or sector in a given country to expand its share of exports in world markets. There is a rich empirical literature that has examined the determinants of sectoral competitiveness for developed countries (Soete 1981; Dosi et al. 1990; Amendola et al. 1993; Magnier and Toujas-Bernate 1994). However, there is no study that one is aware of which has done so for developing countries. In this chapter, we analyse the determinants of sectoral competitiveness (as measured by industry-level export shares) using panel data for 78 Indian industries over the period 1989-90 to 199798.