The Economic Survey on Friday said that Bangladesh holds a lesson for India to build specialisation in products in which it is competitive.
“Bangladesh seems poised to emerge as a dominant exporter as its exports posted an impressive compound annual growth rate (CAGR) of 8.6 percent during 2011-2019, higher than 0.9 percent for India, and 0.4 per cent for the world. As a result, Bangladesh witnessed its share in world exports increase from 0.1 percent in 2011 to 0.3 percent in 2019,” said the survey.
The Economic Survey, tabled by Finance Minister Nirmala Sitharaman in Lok Sabha, said that the top five export commodities account for more than 90 percent of total exports of Bangladesh since 2015. These five commodities mainly pertain to textiles and apparels and footwear industry, which are highly labour-intensive and employs unskilled and semi-skilled labour.
In India's case, the Economic Survey noted that export performance is more broad-based as the top five export commodities jointly contribute around 40 per cent of total exports and these commodities are capital and technology-intensive.
"This pattern was also examined in Economic Survey 2019-20 wherein it was shown that high diversification combined with low specialisation implied that India is spreading its exports thinly over many products and partners," the survey added.
(Edited by : Aditi Gautam)
First Published: IST