Cut barriers to unlock vast potential in South Asia: ADB-Ficci

Easing of trade and investment barriers in South Asia can unlock vast potential for economic growth, a report prepared by Asian Development Bank (ADB) and Federation of Indian Chambers of Commerce and Industry says.

"Reducing visa restrictions and non-tariff barriers, and improving customs procedures, are among a host of steps South Asian countries can take to boost private sector-led growth, unlocking the region’s vast economic potential," it said.

South Asia, with a potential market of 150 crore people, has significant comparative advantages in industries ranging from textiles and garments, to tourism, pharmaceuticals and information technology, the report released by ADB said today.

However, it is also home to half of the world's extreme poor, with 40 per cent of its total population living on less than $1.25 a day, the multilateral lending agency said.

Intra-regional trade remains modest compared to other parts of the world and numerous impediments prevent the private sector from taking a bigger economic role, it said.

Cutting non-physical barriers to trade and improving the climate for investment across borders will encourage greater private sector activity, lifting growth, cutting poverty and strengthening regional integration, the report said.

"Among the steps it suggests are liberalising a South Asia visa exemption scheme, adopting a regional motor vehicular agreement to speed up the passage of goods vehicles across borders and streamlining procedures at land customs stations," ADB said citing the report.