The Economic Survey has said Bangladesh holds lessons for India to build specialization in exports of 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 per cent during 2011-2019, higher than 0.9 per cent for India, and 0.4 per cent for the world," the Economic Survey 2020-21, tabled by Finance Minister Nirmala Sitharaman in Parliament on Friday, said.
It said the top five export commodities for Bangladesh account for more than 90 per cent of total exports of the country since 2015. These five commodities mainly pertain to textiles and apparels and footwear industry, which are highly labour-intensive and employ unskilled and semi-skilled labour.
"In case of India, on the other hand, export performance is more broadbased as the top five export commodities jointly contribute around 40 per cent of total exports and these commodities are capital and technology-intensive," the survey said.
The top four commodities in which Bangladesh has largest Revealed Comparative Advantage (RCA) are also among the top five commodities exported by the country. "This underscores that Bangladesh exports those commodities in which it has competitive advantage," it said.
"However, none of the export commodities in which India has highest RCA is among the top export commodities (in terms of share and value). India's top RCA export commodities are mainly labour-intensive such as cotton, carpets and other textiles, etc., while India exports more of capital-intensive products such as transport
equipment, machinery and mechanical appliances, etc," the Survey said, adding that this holds lessons for India to build specialization in products in which it is competitive.