World Bank Highlights India's Decline in Global Trade and Manufacturing
Global Trade Dynamics: The Rise of Bangladesh and Vietnam
The World Bank emphasizes that India is losing its competitive edge in the manufacturing sector. Recent findings show that while India’s economy accelerates, its share in global trade has not matched this growth.
Declining Export Share
- India's share in global exports has fallen from a peak of 4.5% in 2013 to 3.5% in 2022.
- In contrast, Bangladesh's share reached 5.1%, and Vietnam's stood at 5.9% last year.
Key Challenges and Opportunities
To remain competitive, India must lower trade costs and tackle both tariff and non-tariff barriers. Economist Nora Dihel from the World Bank states, "This is a call to action" for India to enhance its appeal as a manufacturing hub.
The Push for Change
- Lasting investments in manufacturing sectors.
- Strategic revisions of trade agreements.
Despite the challenges, the World Bank projects an impressive growth rate of 7% for India's economy in the current fiscal year, underscoring the potential if strategic measures are implemented.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.