Bangladesh, Vietnam surpass India in low-cost manufacturing: WB
India's global trade share has not kept pace with its economic growth, with Bangladesh and Vietnam overtaking the nation as low-cost manufacturing and export hubs, according to the World Bank's recent report.
The report, published on Tuesday, indicates that the trade of goods and services as a percentage of India's GDP has declined over the past decade, despite the country’s impressive economic expansion.
India's share of global exports in sectors like textiles, leather, and footwear rose from 0.9% in 2002 to a peak of 4.5% in 2013, but it then decreased to 3.5% by 2022. In contrast, Vietnam and Bangladesh saw their shares in these sectors climb to 5.9% and 5.1%, respectively, in 2022.
The World Bank projects that India's economy will continue to grow rapidly, with an expected growth rate of 7% in the current fiscal year ending March 2025, following a growth rate of over 8% the previous year.
For the fiscal years 2025-2026 and 2026-2027, the World Bank forecasts that India's growth will average around 6.7%.
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