“India Missing Out on Export Jobs as Key Industries Decline, Says World Bank Report”
A recent report by the World Bank has highlighted India's decline in jobs linked to exports over the past decade. The multinational bank noted that India failed to capitalize on opportunities presented after China withdrew from labour-intensive manufacturing sectors.
Data shows that between 2015-2022, India's share of global exports declined in major job-creating industries like apparel, leather, textiles and footwear. Meanwhile, countries like Bangladesh, Vietnam and Poland increased their export shares in these key sectors by up to 2%.
India's textiles, leather and marine product sectors, which employ millions, have experienced sharp falls in exports. Shipments from these industries are down nearly 12% compared to five years ago, prior to the pandemic. While Vietnam and Bangladesh have benefited from free trade pacts and boosted market share, India's textile and garment exports have remained stagnant at around $35 billion.
The World Bank observed India's impressive 8.2% growth last fiscal year. However, it noted youth unemployment in cities remains high at 17%. To address this, the report suggested India must deeper integrate global supply chains to create more trade-linked opportunities for innovation and productivity gains.
While India is making progress facilitating trade, the World Bank said limitations persist due barriers affecting goods, services and investment. It advised leveraging changing geopolitics to diversify exports and reduce trade costs. Overall, the findings highlight India's unrealized potential in global markets if policy reforms can help industries better connect to worldwide demand.
