India

India is a founding member of the SASEC Program, joining with Bangladesh, Bhutan, and Nepal in 2001 to form this project-based partnership. Maldives and Sri Lanka became full members of SASEC in May 2014, following several years as active observers.

The country released its comprehensive national Strategy for New India @ 75, which defines growth objectives for 2022 and discusses policy recommendations in such areas as energy, infrastructure, and connectivity. The development strategy aims to help India achieve broad-based economic growth to ensure balanced development across all regions and states and across sectors.

Trade Snapshot

Direction of Intra-regional Trade

The value of India's merchandise exports and imports trade with other SASEC member countries, using International Monetary Fund data from 2022, is captured in the tables below.

India's top import source from the SASEC subregion is Bangladesh, with imported goods valued at over $1 billion. Sri Lanka follows, with imported goods valued at over $689 million.

Bangladesh is India's 6th largest export market, with exports valued at over $7.8 billion. Nepal is India's 12th largest export market, where exported goods from India is valued at over $5.8 billion.

India Trade - Import

Source: IMF Direction of Trade Statistics, accessed May 2022

India Trade - Export

Source: IMF Direction of Trade Statistics, accessed May 2022

Trade Snapshot

Direction of Intra-regional Trade

The value of India's merchandise exports and imports trade with other SASEC member countries, using International Monetary Fund data from 2022, is captured in the tables below.

India's top import source from the SASEC subregion is Bangladesh, with imported goods valued at over $1 billion. Sri Lanka follows, with imported goods valued at over $689 million.

Bangladesh is India's 6th largest export market, with exports valued at over $7.8 billion. Nepal is India's 12th largest export market, where exported goods from India is valued at over $5.8 billion.

India Trade - Import

Source: IMF Direction of Trade Statistics, accessed May 2022

India Trade - Export

Source: IMF Direction of Trade Statistics, accessed May 2022

Logistics Performance Index (LPI)

Of the SASEC member countries, India scored highest at 3.18 and a rank of 44. India's overall LPI score in 2018 is ahead of the South Asia regional average of 2.51. The country posted its best scores in timeliness (3.5), tracking and tracing (3.32), and international shipments (3.21).

India LPI 2016





Source: World Bank LPI (accessed December 2018)

Note: The LPI overall score reflects perceptions of a country's logistics based on six core dimensions: (i) efficiency of customs clearance process, (ii) quality of trade- and transport-related infrastructure, (iii) ease of arranging competitively priced shipments, (iv) quality of logistics services, (v) ability to track and trace consignments, and (vi) frequency with which shipments reach the consignee within the scheduled time. The scores for the six areas are averaged across all respondents and aggregated to a single score using principal components analysis. A higher score indicates better performance.

Economic Outlook


Asian Development Outlook

India's gross domestic product growth remains strong, driven by growth in private consumption, investments, and services. However, manufacturing is projected to grow more slowly than anticipated amid chip shortages that hindered the production and sale of automobiles and electronic goods. Growth projection for India is set at 9.7% in fiscal year (FY) 2021. For FY2022, growth is expected to moderate to 7.5% as domestic demand normalizes. Inflation is estimated at 5.6% for FY2021 and 4.8% for FY2022.

Source: Asian Development Outlook 2021 Supplement (ADB)
South Asia Economic Focus

A second wave of the coronavirus (COVID-19) pandemic hit India in mid-2021, dampening economic growth. India is projected to grow by 8.3% in FY2022. Incentives to boost manufacturing and plans to increase public investment are expected to boost domestic demand. Growth is forecast to stabilize in FY2023 at an estimated 7.5%. The pace of vaccination and reforms in the labor and agriculture sectors will determine the country’s prospects for growth.

Source: South Asia Economic Focus, Fall 2021 (WB)