New Delhi, Apr 12 (KNN) The Asian Development Bank (ADB) has emphasised the need for India to take greater efforts to simplify its tariff policy and enhance its trade competitiveness, while also addressing its 'limited' integration with global value chains (GVCs).

In its Asia Development Outlook report released on Thursday, the ADB highlighted the importance of these measures, particularly for India's manufacturing sector, which is critical to sustaining the country's growth trajectory in the medium term.

According to the report, India's growth strategy is predicated on substantial export growth, which can be achieved through integration into GVCs.

The government's ambitious target of USD 2 trillion in exports by 2030 would require considerable growth, and the ADB stressed that increasing goods exports necessitates India's integration into GVCs, where the country can specialise in stages of production where it has a comparative advantage.

"Increasing goods exports requires India to integrate into global value chains (GVCs), which must entail India specialising in stages of production where it has a comparative advantage, as opposed to necessarily looking to be present in the entire value chain," the lender noted.

The ADB emphasised the need for a simplified tariff policy, along with continued efforts to improve trade and logistics infrastructure. "A simplified tariff policy is needed along with continued efforts to improve trade and logistics infrastructure," it added.

Historically, India has had little engagement in highly integrated GVCs, the ADB noted.

(KNN Bureau)