It is not too late for India to capitalise on opportunities arising from China’s withdrawal from labour-intensive sectors such as garments, leather and footwear, according to a World Bank economist.
“Countries like Vietnam and Bangladesh have capitalised on China’s withdrawal from labour-intensive manufacturing, while India has not done so to the full extent.. But it is not too late to put in place reforms and capitalise on all the opportunities arising from China’s withdrawal,” said Nora Dihel, Senior Economist, World Bank, in an interview with businessline.
Dihel and her colleague Ran Li co-authored the World Bank’s India Development Update 2024 published earlier this week which highlighted that India’s share in global exports of labour-intensive items have been declining unlike Bangladesh and Vietnam.
“Addressing labour market rigidities pointed out (in the report), improving trade facilitation, and in general making the business environment more conducive to investment will be extremely helpful,” Dihel said.