A report released by the World Bank Group on Monday said that online retail sales in India account for just 1.6% of the total retail trade in the country.
He noted that in neighboring Bangladesh too, online sales account for just 0.7% of total retail sales, while in China it accounts for 15% and around 14% globally.
The report titled “Unleashing e-commerce for South Asian integration” published jointly by the World Bank Group and Cuts International indicates that e-commerce can become an engine of growth throughout South Asia and boost trade among countries in the region, but its potential remains largely untapped.
Increasing the use of e-commerce by consumers and businesses in South Asia could potentially help increase business competition and productivity, and encourage production and export diversification, he said. .
“E-commerce can boost a range of economic indicators across South Asia, ranging from entrepreneurship and job growth to higher GDP rates and overall productivity,” Sanjay said. Kathuria, Senior Economist of the World Bank.
A survey of more than 2,200 South Asian businesses showed that top concerns regarding cross-border e-commerce among South Asian countries include logistics, e-commerce and digital regulations, and connectivity and information technology infrastructure.
These barriers are significantly higher when trading with other South Asian countries, according to the report. The main international online partners of South Asian companies are China, the United Kingdom and the United States.
Small and medium enterprises in the region have indicated that removing the regulatory and logistical challenges of e-commerce would increase their exports, employment and productivity by 20-30%. To overcome these obstacles, the report proposes reforms in areas such as payments, delivery, market access regulations, consumer protection and data privacy, at national, regional and global levels.
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