India has potential to triple its trade with South Asia: World Bank
Kolkata, Sep 24 : India has the potential to more than triple its trade in goods with its South Asian neighbours to $62 billion against its actual trade of $19 billion, said a World Bank report released here on Monday.
"A Glass Half Full: The Promise of Regional Trade in South Asia" pointed out that intra-regional trade in South Asia falls short of its potential because of significant barriers, including tariff, para-tariff barriers, non-tariff barriers and trust deficit among the countries in the region.
Trade between India and Pakistan is a mere $2 billion -- which could be $37 billion -- without trade barriers, said the report launched in partnership with Cuts International.
The report estimates "India's potential trade in goods with South Asia at $62 billion against its actual trade of $19 billion, which is a mere three per cent of its global trade and about $43 billion below its potential".
According to the report, all the countries in the region stand to gain from increasing trade cooperation.
For India, the deeper regional trade and connectivity could reduce the isolation of Northeast India, give Indian firms better access to markets of South and East Asia and allow it to substitute fossil fuels by cleaner hydro-power from Nepal and Bhutan.
"Given its complicated history, size asymmetries, and a trust deficit, small steps backed by policy persistence is probably the right way to go for South Asia," World Bank's Lead Economist and Lead Author of the report Sanjay Kathuria said.
He said an incremental approach towards deeper trade cooperation could be powerful. The region has already witnessed this in the form of India-Sri Lanka air-services liberalisation and India-Bangladesh border haats (markets).
The border haats, an initiative by the governments of Bangladesh and India aimed at recapturing the once thriving economic and cultural relationships, is now changing cross-border relations and reducing incentives for smuggling, he added.
The report also said countries around the world harness the potential of intra-regional trade to prosper together with their neighbours.
However, while intra-regional trade accounts for 50 per cent of total trade in East Asia and the Pacific and 22 per cent in sub-Saharan Africa, it forms only five per cent of South Asia's total trade.
Despite significant liberalisation in tariff regimes by South Asian countries since the 1980s, average tariffs are still high.
"In 2016, average tariffs in South Asia were 13.6 percent, more than double the world average (6.3 percent) and the highest among major regions of the world despite a regional free trade agreement (SAFTA) that came into force in 2006," the report pointed out.
According to it, each country maintains a long "sensitive" list of products that are exempted from the tariff liberalisation programme.
Almost 35 per cent of the value of intra-regional trade in South Asia is subject to sensitive list tariffs and over 39 percent of India's exports to the region fall under the sensitive lists of various partners, it said.
Also, several countries in the region maintain high para tariffs (that is, duties imposed on imports, but not on domestic production), which have not been included in the tariff preference programmes in free trade agreements.
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Tension grips Bangladesh after unrest over uprising leader’s death; vandalism at several places
Dhaka (PTI): Bangladesh interim government on Friday urged citizens to resist violence by “a few fringe elements” as the body of a prominent July Uprising leader, who died in Singapore six days after he was shot, reached the capital.
Various parts of the country were rocked Thursday night by attacks and vandalism, including stone-hurling at the Assistant Indian High Commissioner's residence in Chattogram, after Chief Adviser Muhammad Yunus confirmed Sharif Osman Hadi's death in a televised address to the nation.
There were, however, no reports of fresh violence since Friday morning.
Hadi, one of the leaders who had taken part in the student-led protests last year – termed as July Uprising - and a candidate for the scheduled February 12 general elections, died while undergoing treatment at a Singapore hospital six days after he was shot by unidentified men.
Body of Hadi, who was the spokesperson of the Inqilab Mancha, arrived at Hazrat Shahjalal International Airport (HSIA) at around 6 pm on a Biman Bangladesh Airlines flight, amid tight security and widespread public mourning, state-run news agency Bangladesh Sangbad Sangstha (BSS) said quoting Biman General Manager (Public Relations) Boshra Islam.
Members of the Bangladesh Army, Armed Forces Battalion (AFB) and police were deployed in large numbers to maintain security when Hadi's body was taken out of the airport, it added.
Hadi's passing away at the Singapore General Hospital triggered widespread mourning across political circles, activists of Inqilab Mancha and the general public, BSS said.
Yunus has declared a one-day state mourning on Saturday following Hadi's death.
Earlier on Thursday, soon after Yunus' announcement, protesters took to the streets and attacked offices of leading newspapers, vandalised 32 Dhanmandi with hammers, and also demolished an office of deposed prime minister Sheikh Hasina's disbanded Awami League party in Rajshahi city.
Regarded as the centre point of Bangladesh’s pre-independence struggle for autonomy for decades, 32 Dhanmandi was largely demolished with excavators on February 5 this year. It was also set on fire soon after the August 5, 2024 fall of the then Awami League government and Hasina fleeing to India.
Protesters also hurled bricks and stones at the residence of the Assistant Indian High Commissioner in Chattogram at 1:30 am, but failed to cause any damage.
Police responded with tear gas and baton charges, dispersing the crowd and detaining 12 protesters. A few injuries were also reported.
Senior officials assured the assistant high commissioner of enhanced security.
In Dhaka, protesters attacked the office of a leading cultural group, Chhayanaut, and brought out the furniture, setting it on fire.
Sporadic violence was also reported from other parts of the country overnight.
Meanwhile, after the flight from Singapore landed in Dhaka, local media reports and videos shared on social media showed Hadi's followers lining up on both sides of the road from the airport to Shahbagh to receive him before his coffin was brought to the Dhaka University Central Mosque for a public meeting.
In a Facebook post, Inqilab Mancha announced that a janaza will be held in Bangladesh on Saturday after Zuhr prayers (afternoon) at Manik Mia Avenue in the capital.
Hadi was shot in the head last week by masked gunmen as he initiated his election campaign at central Dhaka’s Bijoynagar area. He died while undergoing treatment at a Singapore hospital after fighting for his life for six days.
On Thursday night, the National Citizen Party (NCP), a large offshoot of Students Against Discrimination (SAD) that led the July Uprising, which ousted the Hasina-led government, joined a mourning procession on the Dhaka University campus.
Supporters of the group chanted anti-India slogans alleging that Hadi’s assailants fled to India after committing the murder. They called upon the interim government to close the Indian high commission until they were returned.
“The interim government, until India returns assassins of Hadi Bhai, the Indian High Commission to Bangladesh will remain closed. Now or Never. We are in a war!” said Sarjis Alm, a key leader of NCP.
Starting Thursday through night, a group of people, believed to be part of the protesters, also attacked the offices of Bangla newspaper Prothom Alo’s office and the nearby Daily Star at the capital's Karwan Bazar, near the Shahbagh intersection.
Reports said they vandalised several floors while journalists and staff of the newspaper were trapped inside, and the mob ignited a fire in front of the building.
Critically ill former prime minister Khaleda Zia's Bangladesh Nationalist Party (BNP) strongly condemned the vandalism and said that the Yunus-led interim government will have to shoulder its responsibility.
In his address on Thursday, Yunus vowed to bring those involved in Hadi's brutal murder to justice quickly, saying, “No leniency will be shown” to the killers.
“I sincerely call upon all citizens – keep your patience and restraint,” he said.
“No one can stop the democratic progress of this country through threat, terrorist activities or bloodshed,” he said, adding that the responsibility of realising Hadi's dream lies on the shoulders of the entire.
