Research 

Abstract: This study explores the effects of digitization on product quality. Combining firm-product-level data on Indian manufacturing firms from 2001 to 2014 with a sectoral index that captures performance in Indian ICT service sectors used as inputs into manufacturing, I show that better access to ICT services, especially telecommunication service, has a positive and statistically significant effect on product quality. Mechanisms analysis indicates that access to ICT services impacts product quality upgrading by inducing manufacturing firms to use high-quality imported raw materials and outsource manufacturing jobs. 

Abstract: This study examines the impact of financial development on firm environmental performance. Using state-level variation in the credit-to-GDP ratio and detailed energy consumption data from Indian manufacturing firms during the 1990s and 2000s, I find that financial development leads to reductions in firm fuel intensity. Analysis of product-level energy data suggests that these reductions are primarily driven by improvements in production efficiency, while product reallocation within firms tends to increase fuel intensity, particularly in industries with inherently higher asset tangibility. Finally, heterogeneity analysis shows that the effects are stronger for older, larger firms, those with higher initial credit costs, and in states with limited energy availability and environmental regulations in place. Overall, this study highlights the importance of the financial sector in promoting the sustainable development of manufacturing production.