Private Sector Development
Technological content of India’s exports
The evolution of Indian exports has not followed a “textbook” pattern. The pattern of evolution points to a dichotomy in the Indian economy – a well integrated, technologically advanced services sector and a relatively lagging manufacturing sector. The share of service exports in total exports has grown to over 32 percent in 2013 from 28 percent in 2000. On the other hand, the share of manufacturing exports in total export has declined to 67 percent from nearly 80 percent during 1990-2013.
The growth in service exports has been more rapid, resulting in the share of services exports in total exports to increase rapidly over the last decade. This can be explained by technological changes. Many services do not require face-to-face interaction, and can be stored and traded digitally. These services are called modern services. Modern services are the fastest growing sector of the global economy. This is particularly evident in India, where modern services exports account for nearly 70 percent of the total commercial services exports (compared to around 35 percent in EMs) (see Figure 1).
Bangladesh has a major opportunity to address one of its most pressing development challenges: creating 20 million new jobs over the next decade. And the trade agenda will be a centerpiece of any strategy that seeks to address this challenge.
Join me for a Facebook Q/A chat on January 28 to discuss this and other findings from the recently released report Toward New Sources of Competitiveness in Bangladesh co-authored with Mariem Mezghenni Malouche.
Below are some 4 highlights from the report, which we will be discussing. I look forward to your questions and a vibrant discussion!
- Bangladesh will need to expand its linkages with neighboring countries such as China and India as well as other Asian countries like Japan and South Korea. Not only are these very large markets, they are also potential sources of greater foreign direct investment. What are the critical steps that will allow this to happen? How can the recently signed Motor Vehicles Agreement between Bangladesh, Bhutan, India and Nepal help? What are the barriers to Bangladesh’s venturing into new markets?
- Bangladesh will need to gradually diversify its export base into new product areas while also strengthening its position as the second-largest garment producer in the world (after China). Our report explores the critical challenges that could allow this to happen. In your view, what challenges lie ahead if Bangladesh tries to diversify its exports? Can you name some prospective industries (for diversification)? What will be the role of foreign direct investment in this diversification? What kind of reforms are needed to attract more domestic as well as foreign direct investment?
Urbanization growth is already stretching cities’ resources. and Karachi ranked 135 out of 140 countries in the Economist Intelligence Unit’s 2015 livability index.
What does art have to do with technology? Just ask Mahoor Jamal, a fashion illustrator and portrait artist from Peshawar, who uses Instagram—an online photo site—to showcase her work and connect with an international audience and to sell more of her work. Or just ask Jawad Afridi, a photographer and the founder of Humans of Peshawar. He is also dependent on social media for his work, using Facebook to exhibit his photographs of the people of Peshawar. This has earned him customers and recognition beyond Pakistan and he has recently contributed to the publication of a book in the UK. These young artists, and many more, will soon be getting together in the Pakistani province of Khyber Pakhtunkhwa to celebrate art and technology over two days at the ArtTech Festival.
Formerly known as the Northwest Frontier Province, Khyber Pakhtunkhwa has historically been an important trade route between Central and South Asia. This position resulted in an amalgamation of unique cultures, traditions, ethnicities, histories and monuments that have shaped today’s artists, artisans and musicians from KP. KP is now emerging from a period of instability, and is looking to the future to identify opportunities for its youth in the knowledge economy.
The ArtTech Festival will be the first step in raising awareness and building a community of youth interested specifically in the cutting edge intersection of art and technology. As a “sister” festival to the larger Digital Youth Summit, the Festival creates a space and platform to encourage cross disciplinary creativity and to nurture entrepreneurship in the creative and cultural industries.
Working in the renewable energy sector for the World Bank since 2010, I have visited more than 50 Micro Hydropower Plants (MHPs) in rural Nepal. From villages high up in the hills inaccessible by even the toughest 4WD jeeps to settlements perched on steep slopes, to one powerhouse that could only be reached by crossing a cold river with shoes in hand.
And with every community I visited, every family that welcomed me, I felt the same happiness to see them celebrate the commissioning of a MHP in their village. They enjoy evenings and nights as they chat, eat and watch TV with their family under the electric lights.
This blog is part of the series #OneSouthAsia exploring how South Asia can become a more integrated, thus more economically dynamic region. The blog series is a lead up to the South Asia Economic Conclave, an event dedicated to deepening existing economic links through policy and investments in regional businesses.
Here’s an interesting statistic: 95 percent of trade by South Asian countries is focused on Europe, North America, and, to a lesser extent, East Asia. This has kept the sub-continent, with several landlocked and border regions being some of the poorest in the world, from realizing the wealth in its own neighborhood. By contrast, 25 percent of ASEAN’s trade is within its own region.