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Import tariffs to enhance exports as World Bank suggests India cuts subsidies


To increase the exports, the World Bank has recommended the Indian government to edit down the subsidies and import levies.

The suggestion was on policies of especially the apparel, factory farm, automotive and electronics sectors. India can see growth through the sectors by increasing the competitiveness and thereby increasing the exports, as per the bank.

Through an analysis, word bank has released a report and according to this, in 2000-2013, 14% annual growth in Indian exports gives it a place in the first tier in merchandise exports amongst the South Asian countries. Only 1.5% Indian goods are reaching in the world market.

“A large region of Bangladesh and Sri Lanka’s success in apparel has resided in the fact that exporters have no difficulties importing fabric,” was informed in a report named South Asia’s turn: Policies to Boost Competitiveness and Create the Next Export Powerhouse.

India has established a noteworthy progress in building up the top of the value chain facilities, like evolving into global research and development centre for large automobile parts and electronics makers. This story states that if the codes practised are further enhanced for better productivity India in the lead with the rest of South Asia could increase the world market share by three times in electronics and motor vehicles. The portion in the garment industry (excluding textiles and leather) can also become double by 2030.

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