Low e-com penetration in South Asia holds back growth, says World Bank

Restrictions on trade responsible for firms not opting for e-commerce, says report

E-commerce penetration in South Asia remains disproportionately low as lack of intra-regional trade holds back growth potential, a World Bank report surveying 2,200 firms across the region has said.

Restrictions on the current trade like tariffs, port restrictions, and other non-tariff barriers are responsible for only 40 per cent of surveyed firms opting for e-commerce. Consequently, removing regulatory and logistical challenges to e-commerce would increase their exports, employment, and productivity by as much as 20–30 per cent.

The survey reaffirmed that lack of trade between countries in the region meant that the vast majority of cross-border e-commerce was conducted with extra regional