World Bank advises India to cut subsidies, import tariffs to boost exports.

NEW DELHI: World Bank has advised India to reduce subsidies and import duties to become an export powerhouse. Among the policy levers which India can use to improve competitiveness and enhance exports, the bank identified apparel, agribusiness, automotive and electronics as the sectors which can especially benefit.

In a report launch on Wednesday, the bank said that while India's 14% annual export growth between 2000 and 2013 puts it in the first tier of South Asian countries when it comes to merchandise exports, its goods reach only 1.5% of the global exports market.

"A large part of Bangladesh and Sri Lanka’s success in apparel has resided in the fact that exporters have no difficulties importing fabric," it said in a report titled South Asia's turn: Policies to Boost Competitiveness and Create the Next Export Powerhouse.

India in particular has made substantial progress in developing top of the value chain capabilities, such as becoming a global research and development hub for major auto-parts and electronics producers.

The report noted that with the right set of productivity-enhancing policies, South Asia, led by India, could more than triple its share in global markets of electronics and motor vehicles and come close to doubling its already significant market share in wearing apparel (excluding textiles and leather) by 2030.

Source : economictimes.indiatimes.com