While cooperation between the two South Asian nations is hampered by the historical circumstances under which they were born, speakers said cooperation between the two was vital to the growth of the South Asian economy
NEW DELHI: The tension at the India-Pakistan border cast a shadow over the India Economic Summit, which began in New Delhi on Thursday, with speakers in several sessions urging both countries to improve the economic environment. India, they added, needs to take a lead in pushing trade and commerce in South Asia and play a critical role in regional cooperation.
India’s recent success in pushing through the Goods and Services Tax (GST) has begun to unify her internal markets and provides a springboard for India to play a pivotal role in regional cooperation.
Speaking at the India Economic Summit—WEF-CII, Malik Samarawickrama, Minister of Development Strategies and International Trade of Sri Lanka said, “India and Pakistan, the two largest economies in the region, should find a way of working together as a prerequisite for wider economic cooperation across South Asia.”
Cooperation among the two South Asian nations is hampered by the historical circumstances under which they were born, observers added. “A series of groups with vested interests continues to benefit from the political economy of conflict and the status quo,” said Samarawickrama, adding that most countries were too preoccupied with internal consolidation to invest political capital in regional integration.
“You can be nice to your neighbours if you’re happy in your own house first,” observed Siraj Azmat Chaudhry, Chairman of Cargill India.
The need to have regional cooperation is critical especially when the regional community is fragmented along security and religious lines, pointed out A H M Mustafa Kamal, Minister for Planning of Bangladesh.
Speakers also suggested legal measures to develop a common regional market. “The sheer size of this market is useful in global bargaining,” said Richard Rekhy, Chief Executive Officer and Managing Partner, KPMG, India.
Samir Saran, Vice-President of the Observer Research Foundation (ORF) added that India has not done enough to promote regional connectivity.
For too long, India has been looking to the West rather than the East, he said, and as the existing global order of free trade stumbles, South Asia needs to create her own trading arrangements.
“Regional integration is no longer an option; it is a compulsion,” underlined Saran.00