Integration of ICT industries and its impact on market access and trade: the case of Bangladesh and India

South Asia region could emerge as an ICT hub of the world. ICTs could have substantial impact on regional cooperation and integration if the right policies, programmes and mechanisms are put in place.

Information and communication technologies (ICTs) could improve institutional information management and intra-institutional communication between regional cooperation institutions. ICTs also could promote trade, financial cooperation and efficiency in key sectors such as agriculture and education. In this context, as a regional body, South Asian Association for Regional Cooperation (SAARC) can take some policies that can be useful for the development of the ICT industry in South Asia.

This study is a first of its kind which combines findings based on firm-level data from both India and Bangladesh aimed at deriving a set of conclusions on the prospect of development of the ICT industry in South Asia. Although somewhat restrictive, conclusions from this study can be generalized to other SAARC countries as the current situation of the ICT sector in Bangladesh is almost comparable to other countries in SAARC region. Based on the analysis of firm level data on ICT firms in India and Bangladesh, several issues have emerged that can be pertinent to policy making for further development of the industry. These include product specialization, market access, human resources and infrastructure.