India is facing a challenge in maintaining its global trade share amid its booming economy, as per the World Bank. The country is lagging behind competitors like Bangladesh and Vietnam in becoming low-cost manufacturing export hubs. Despite its economic size, India’s trade in goods and services has decreased as a percentage of GDP over the past decade, the report stated.
While India’s export share in certain goods peaked in 2013, it has since declined while Bangladesh and Vietnam have seen growth. The World Bank suggests that India needs to lower trade costs, reduce barriers, and revise trade agreements to boost exports and take advantage of China’s manufacturing shift.
Prime Minister Narendra Modi aims to position India as a manufacturing hub by attracting investment through subsidies. However, the country’s export sectors are becoming more capital intensive, leading to a decline in direct employment related to exports. Despite this, the World Bank projects India’s economy to continue growing at a rapid pace in the coming years.
The call to action for India is clear – to focus on enhancing its trade competitiveness and seizing the opportunity to become a key player in the global export market.
[ad_2]
Source link
