India Losing Manufacturing Ground to Smaller Rivals, World Bank Says

A recent report from the World Bank indicated that India is facing significant challenges in the manufacturing sector, losing competitiveness to smaller nations. Despite its economic size and growing population, India struggles to effectively compete with countries like Vietnam, Myanmar, and Bangladesh, which have become more attractive to investors in the manufacturing space. Key reasons for this trend include high labor costs, complex business regulations, and inadequate infrastructure.

The World Bank emphasized that India must adopt more dynamic measures to improve its investment climate. As international companies seek more favorable conditions for doing business, the Indian government risks missing out on opportunities arising from globalization. To prevent further decline in its position in the global market, the country needs to modernize its manufacturing processes and create more attractive conditions for investors.

As a result, India's manufacturing sector may face greater difficulties in the future if necessary measures are not taken. The report also highlights the need for adopting new technologies and upskilling the workforce to meet modern market requirements.

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