Geopolitical fragmentation offers trade opportunity for South Asia: CEA

The geopolitical fragmentation in large economies is an opportunity for South Asian nations to climb on to the global trade bandwagon and grab market share, India's chief economic adviser V Anantha Nageswaran said on Friday. These trends are cyclical, he added.

"... this is an opportunity for all South Asian countries, including India, to climb on to the global trade bandwagon, which they were not really part of earlier," Nageswaran said during a panel discussion organised by the International Monetary Fund.

South Asian economies must first increase trade volume among themselves, Nageswaran added.


He said one reason why India has been successful in setting up its digital infrastructure is that being a latecomer, it was able to avoid the mistakes of advanced nations and ensure that the technology was open, inclusive and affordable to all.

These countries must upgrade technology, investment in research and development and their educational systems, as this would provide them with opportunities to grab market share, he said.

"'When the pie is growing for everybody, there is no need to worry about market share. But when the pie is not growing as big, or when there are countries looking at national security angles, other than efficiency angles, then it is about market share, which means focusing on competitiveness, focusing on market share gains, and that I think is an opportunity for South Asian countries," the CEA said.

India, he said, did not repeat the mistake of many advanced countries by making its digital infrastructure exclusionary. "It was inclusive because it could cater to all wallets and all sizes. And that is why it had to be open architecture. It had to be affordable, and it had to be accessible by all people, including in remote locations."