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Trade

Make in India: Which exports can drive the next wave of growth?

Saurabh Mishra's picture
Structural transformation depends not only on how much countries export but also on what they export and with whom they trade. In my new IMF working paper with Rahul Anand and Kalpana Kochhar, we break new grounds in analyzing India’s exports by the technological content, quality, sophistication, and complexity of India’s export basket. The paper can be found here. Here are few key pieces of evidence from our paper:
 
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). 
      
Figure 1. Rapid Growth in Modern Services from India

Accelerating economic growth and job creation in Bangladesh

Sanjay Kathuria's picture
Instructor and Students at the Bangladesh Korea Technical Training Center, Chittagong
Instructor and Students at the Bangladesh Korea Technical Training Center, Chittagong.
Credit: Mahfuzul Hasan Bhuiyan

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!
 

  1. 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?

  2. 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?

  3.  

How to reconnect South Asia through trade

Prasad Thakur's picture
India is home to 15,000 kilometers of navigable inland waterways.
India is home to 15,000 kilometers of navigable inland waterways. Photo credit: Anirban Dutta / World Bank



South Asia can now reap the benefits of greater regional integration it once enjoyed before its partition into various countries. But first, the region must break down the barriers that impede its intra-regional trade. 

The potential of one South Asia in 4 numbers

Delilah Liu's picture
Young Indian Female Student holding a "I believe in One South Asia" Sign
Young Indian Female Student at the South Asia Economic Forum 2015. Credit: World Bank

You don’t have to be a number-cruncher to enjoy this challenge:

1, 5, 200, and 2,800,000. Close your eyes after reading these numbers. Can you recite them in the right order?

Intrigued? If you’re interested in the development of South Asia, these four numbers will resonate with you. They represent four areas of opportunity for the region to further integrate and thrive economically.

Last month, prior to the South Asia Economic Conclave #SAEC15, Sanjay met with 30 Indian graduate students holding or currently pursuing advanced degrees in history, economics, and South Asia studies. He shared the 4 numbers with them and observed their responses. Here’s an overview of the conversation:​

Toward South Asian regional economic integration: A Bangladeshi perspective

Tariq Karim's picture
Motijheel commercial area
Mortijheel Commercial area Photo credit: Mahfuzul Hasan Bhuiyan


South Asia can become a powerful locomotive of global development but it could just as easily regress into becoming the crucible for global instability and insecurity

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.

SAARC countries need to think of pragmatic approaches and reimagine regional cooperation. One can conceive of SAARC as comprising three sub-regions within the larger South Asian landscape namely: the eastern sub-region of  Bangladesh, Bhutan, India and Nepal (BBIN); the southern sub -region of India, Maldives and Sri Lanka (IMS); and the western sub -region of Afghanistan, India and Pakistan (AIP). 

Imagine a South Asia without borders

Annette Dixon's picture
Cranes in Bangladesh Harbor
Cranes in Bangladesh Harbor. Credit: Eric Nora / The World Bank

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.

Imagine a South Asia without borders. People, industries, goods and services flow freely in the most profitable way for all. Imagine that necessities sorely needed in one area are freely available from areas where there is plenty. South Asia’s story of poverty amidst plenty would begin to change.

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