World Bank has urged India to focus on labor-intensive exports to boost employment, particularly in sectors like textiles and footwear. WB noted that India missed opportunities in labor-intensive manufacturing following China’s exit, allowing countries like Bangladesh and Vietnam to gain market share in areas like apparel and leather. India’s share of global apparel exports declined from 4% in 2018 to 3% in 2022.
While India has seen growth in high-tech exports like mobile phones, it has struggled with job creation and inclusive growth. The urban unemployment rate remains high at 17%. To improve, the World Bank suggested India target less advanced markets like Africa and Latin America, reduce import tariffs, and integrate into global value chains.
World Bank raised its economic growth forecast for India to 7%, up from 6.6%, largely due to government infrastructure spending. India’s total exports in fiscal 2023/24 surpassed $776 billion, while imports reached nearly $855 billion.
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