Garment production for exports. Việt Nam and Bangladesh are more competitive in low-cost manufacturing than India, according to the World Bank's recent report. — VNA/VNS Photo Hồng Đạt

NEW DELHI — India's global trade share has not kept pace with its economic growth, with Việt Nam and Bangladesh overtaking the nation as low-cost manufacturing and export hubs, according to the World Bank's recent report.

The WB report released on Tuesday highlights that the proportion of trade in goods and services as a percentage of India's gross domestic product (GDP) declined over the past decade, despite the country's rapid economic growth.

Accordingly, India's share in global exports of textiles, leather, and footwear increased from 0.9 per cent in 2002 to a peak of 4.5 per cent in 2013 but then fell to 3.5 per cent in 2022. Việt Nam's and Bangladesh’s share in these sectors reached 5.9 per cent and 5.1 per cent in 2022, respectively.

The bank recommended that India reduce trade costs, lower trade barriers, and deepen trade integration to remain competitive.

The bank expects the Indian economy to continue its rapid growth at a rate of 7 per cent in the current fiscal year, ending in March 2025, following a growth rate of over 8 per cent in the previous year. The multilateral lender also forecasts India's growth to average 6.7 per cent for the 2025-26 and 2026-27 fiscal years. — VNS