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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Karnataka: GBA city corporation polls likely between June 14 and 24
Bengaluru (PTI): Karnataka State Election Commissioner G S Sangreshi on Friday said elections to the five city corporations under the GBA will be held anytime between June 14 and June 24.
He said the exact date for the polls will be announced after a week, asserting that the power to postpone the elections, as requested by GBA authorities, lies with the Supreme Court.
The Supreme Court had directed the Karnataka government and the State Election Commission to conduct Bengaluru local body elections by June 30.
On Friday, the SEC held a consultation meeting with the GBA Chief Commissioner and commissioners of the five city corporations regarding the election schedule, as per the provisions of the GBA Act.
“During the meeting, I informed GBA officials that only the election date has to be fixed, as all other measures and formalities for conducting the polls have already been completed,” Sangreshi said.
“They requested the Commission to consider factors such as rains, exams, census work, SIR, and manpower shortages while fixing the date and sought additional time,” he added.
Speaking to reporters after the meeting, he said, “I told them this meeting was not for seeking time. Elections to the five corporations under the GBA must be held before June 30, as directed by the Supreme Court, and a compliance report must be submitted to the court. I do not have the power to postpone the elections as requested.”
The Supreme Court has already given a “final opportunity,” and both the SEC and the government must comply with its directions, the State Election Commissioner said.
He asked GBA officials to suggest suitable dates between June 14 and June 24.
“While stating that they are ready for elections, the officials highlighted operational challenges, including manpower shortages. However, I have informed them that the elections will have to be held between June 14 and June 24. After a week, I will announce the final date,” he said.
Reiterating that he does not have the power to postpone the elections, Sangreshi said the authority rests with the Supreme Court, and elections must be conducted as scheduled.
“We have consulted the GBA as per the rules. It is up to them to suggest a date within the given window. If they need more time, they must approach the court. Our responsibility is to fix the date and complete the polls before June 30,” he said.
The matter regarding manpower and other concerns raised by GBA officials is already before the Supreme Court, and the State Election Commission has also filed a petition in this regard. The case is yet to be heard.
“Since the matter has not come up for hearing, the earlier order remains binding. Therefore, preparations are underway,” he added.
The tenure of the previous elected body under the erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP) ended on September 10, 2020, and since then, a government-appointed administrator has been managing its day-to-day affairs.
Bengaluru was divided into five municipal corporations—Central, East, West, North, and South—under the Greater Bengaluru Authority in September 2025, replacing the BBMP.
Sangreshi had earlier said that elections to the five corporations would be conducted using ballot papers instead of Electronic Voting Machines.
This follows the Congress government’s decision last September to recommend the use of ballot papers in all future panchayat and urban local body elections, citing concerns over declining public confidence in EVMs.
The state government subsequently enacted the Karnataka Gram Swaraj and Panchayat Raj (Amendment) Act, 2026, paving the way for the use of ballot papers in local body elections.
