South Asia’s Business Environment Report 2023/2024 released at the 17th China-South Asia Business Forum, eyeing opportunities in South Asia

At the 17th China-South Asia Business Forum in Kunming on July 23, the Academy of the China Council for the Promotion of International Trade released the South Asia’s Business Environment Report 2023/2024 (hereinafter referred to as the “Report”). This Report provides a thorough and systematic analysis of the latest characteristics and trends of the business environments in South Asian countries, with a view to promoting economic and trade cooperation between China and South Asian countries.
 South Asia is one of the most dynamic and populous regions in the world. In recent years, China and South Asian countries have conducted extensive cooperation in various areas, such as economy, trade, science and technology, infrastructure, and people-to-people exchanges. In 2023, trade volume between China and South Asian countries hit approximately USD200 billion, twice that of 2013.

The Report notes that China and India complement each other in the sphere of science and technology. China is stepping up efforts to develop advanced manufacturing and information industries, leading to more mature technologies and stronger product competitiveness. Meanwhile, the Indian government is pushing forward economic development initiatives such as “Made in India” and “Digital India,” which have been met with enthusiastic responses from Chinese technology companies. Additionally, China and India are both developing countries and the two most populous countries in the world. The two have tremendous demand for energy, and cooperation in the energy sector holds broad prospects.

The Report takes a close look at the latest dynamics of China-Bangladesh economic and trade cooperation, noting the rapid growth of China’s direct investment in Bangladesh and vast potential of bilaterial industrial cooperation. Bangladesh tops South Asian countries by share of industrial production in GDP, and an abundant supply of low-cost labor forces gives it a significant advantage in industrial development. In the future, Chinese economic and industrial parks will serve as important platforms for China-Bangladesh industrial cooperation.

Regarding China-Pakistan economic and trade cooperation, the Report points out that agricultural cooperation between the two countries has a great potential. In 2023, trade in agricultural goods between China and Pakistan reached USD1.095 billion. In particular, China imported USD791 million of agricultural goods from Pakistan, accounting for 23 percent of its total imports from the South Asian country. According to the joint statement between the People’s Republic of China and the Islamic Republic of Pakistan in November 2023, agricultural cooperation between China and Pakistan holds great potential, with steady progress being made in projects within the framework of the China-Pakistan Economic Corridor (CPEC), such as crop breeding and pest and disease prevention and control.

As to the key sectors attracting foreign investment, the Report states that the key sectors in India are information technology, agriculture and related industries, and pharmaceuticals. The key sectors in Bangladesh are textiles and apparel, information technology, and pharmaceuticals. In Pakistan, the key sectors attracting foreign investment are food processing, textiles and apparel, logistics, software, and engineering products. In Sri Lanka, the key sectors are textile and apparel, pharmaceuticals, and medical devices. In Nepal, they are agriculture, energy, and transportation.

According to Zhao Ping, head of the Academy of the China Council for the Promotion of International Trade, it took seven months to prepare the Report, which for the first time offers a thorough and systematic analysis of the latest characteristics and trends of business environments in South Asian countries. From the perspective of the business community, recommends are put forward to help South Asian countries further improve their business environments and support enterprises in fully exploiting the development opportunities in South Asia.