India News: World Bank Highlights Challenges for Indian Economy in Manufacturing Sector
World Bank Report on Indian Economy
According to the World Bank, India's global trade share in low-cost manufacturing is faltering, losing out to competitors like Bangladesh and Vietnam. The Indian economy has shown significant growth, yet its share in global exports of key sectors like apparel and textiles has declined. This decline, from a peak of 4.5% in 2013 to just 3.5% in 2022, highlights critical challenges for India's manufacturing sector.
Manufacturing Sector Challenges
- India’s trade in goods and services has diminished as a percentage of GDP over the past decade.
- While Bangladesh's and Vietnam’s export shares grow, India’s faces stagnation.
- The World Bank suggests focusing on lowering trade costs and revising trade pacts.
Future Outlook
The World Bank forecasts a 7% growth for India’s economy in the fiscal year through March 2025. However, the manufacturing challenges and the need for significant reforms remain pressing.
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.