Infographic: Trade in South Asia

 WB infos

Infographic realised by World Bank (Source). Click on image to enlarge

Trade in South Asia has played a significant role in the region's economy and cultural exchange for thousands of years. Here's a concise overview:

Historical importance: South Asia has been a key player in global trade since ancient times, with the Indus Valley Civilization engaging in commerce as far back as 3000 BCE.

Silk Road: The region was an integral part of the ancient Silk Road, connecting East Asia with the Mediterranean world.

Maritime trade: Coastal areas have long been hubs for sea-based trade, linking South Asia with Southeast Asia, the Middle East, and East Africa.

Key exports: Historically, South Asia has exported spices, textiles, precious stones, and agricultural products. Today, the region also exports manufactured goods, software, and services.

Modern trade blocs: The South Asian Association for Regional Cooperation (SAARC) aims to promote economic cooperation among member states.

Challenges: Despite progress, intra-regional trade in South Asia remains relatively low compared to other regions due to political tensions, infrastructure issues, and trade barriers.

Major trading partners: The United States, China, UAE, and European Union countries are significant trade partners for many South Asian nations.

Growing sectors: IT services, pharmaceuticals, and renewable energy are emerging as important areas for trade and investment in the region.

But,

According to WorldBank, with an intra-regional trade at less than 5% of total trade, South Asia is the least integrated region in the world, dwarfed by East Asia’s 35% and Europe’s 60%. 

It’s 20% cheaper for India to trade with Brazil than with its neighbor Pakistan. 

Bangladesh’s exports to India can potentially rise by 300%

Going forward, here's what South Asia can do to achieve better integration and boost its regional trade.