Instead of goods, we export our money.

Bangladesh is benefiting hugely from the trade war between China and the US. "The South Asian nation, which is the world's second-largest garment exporter, has seen the value of its overseas sales rise to a record $3.81 billion in May, coinciding with Trump boosting tariffs on $200 billion of Chinese goods to 25% from 10%." "For Bangladesh, which aims to double total exports to $72 billion by 2024, snaring part of the $41 billion of the clothing business that goes to China will provide a fillip to an economy that the Asian Development bank forecasts will expand at a record 8% for the next two years." India also has a large textile industry "providing employment opportunities to more than 35 million people in the country". "India's Textile industry contributes to 7 percent to industrial output in terms of value, 2 percent of India's GDP and to 15 percent of country's export earnings. India's overall textile exports during FY 2017-18 stood at US $39.2 billion." Sadly, "India's apparel exports have fallen for two years in a row. Estimated at $16.2 billion in FY19, the country's apparel exports fell by 1.2% from FY18, which in turn was 4% lower than the previous year." This has been partly because of "a sharp decline reported during Q3 FY2018, amid downward revision in export incentives under the GST regime". The government's hunger for taxes is hurting the industry. Not just textiles, India's total exports are also falling. "For the first time in nine months, India's exports shrank 9.71% last month to $25.1 billion, while imports declined 9.06% to $40.29 billion." Which puts our trade deficit for the month of June to $15.19 billion. Not surprising that, "India's current account (CA) balance deficit grew to $68 billion in 2018-19 from $49 billion the previous year, according to the International Monetary Fund (IMF), which said the deficit was justified by development needs." In the last three years, our trade deficit has widened with 25 major countries, including "South Korea, Japan, Germany, Iraq and Saudi Arabia". India needs strong exports if it is to grow at 8-10%, said Prof A Panagariya. "He stressed that there is not a single country which has grown on a sustained basis at rates of 8-10 percent for 2-3 decades without rapid growth in trade." "No country in history has ever grown fast over a number of years, while carrying the twin of a persistent trade deficit with the rest of the world, and a long slump in domestic investment," wrote A Barman. What growth if we keep giving money to other countries? We need not worry about being stuck in a middle-income trap because we will remain stuck in a low-income trap, wrote A Chhibber. It's not about GDP growth, the people must have more money. No chance of that.