A Business Standard analysis of 2022-23 data shows that India’s post-pandemic trade with its South Asian neighbours has fallen to under 3 per cent: that is the lowest in some ten years. The analysis considered data for Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka as per the standard government classification. Trade within the region was weak for years, made worse by the pandemic and the economic crisis in countries including Sri Lanka and Pakistan .
 "Chart")
China had a larger role than India in trading with South Asian countries even before the pandemic, shows data from the World Bank. China exported goods worth $40 billion to South Asia in 2019 compared to India’s $22.6 billion. China’s overall trade with the seven South Asian countries is 65 per cent higher than India.
 "Chart")
Â
 "Chart")
Para-tariffs (border charges and fees), cumbersome rules, poor infrastructure, and logistics are hindering trade in South Asia, according to a study by the Brookings Institution think tank. India is working on improving logistics through plans for waterways all the way to Thailand.
Research has shown that South Asian trade could be nearly three times higher and benefit India. Better connectivity in the region can help the country’s northeast states and improve its links with East Asia. And bring more Kabuliwalas.
