Edited by Sultan Hafeez Rahman, Sridhar Khatri and Hans-Peter Brunner
Chapter 3: Integration of ICT Industries and its Impact on Market Access and Trade: The Case of Bangladesh and India
Monzur Hossain, Naoko Shinkai, Mohammad Yunus and Zaid Bakht INTRODUCTION It is generally recognized that South Asian countries have excellent prospects for the development of information and communication technology (ICT) and other knowledge-intensive industries. South Asian countries have a significant human capital base, a prerequisite for development of the ICT industry. India is a clear case in point. The ICT industry in India accounts for around 6 percent of its GDP. In Bangladesh, as in other South Asian countries, the ICT sector makes only a negligible contribution to gross domestic product (GDP) (less than 1 percent). Nonetheless, the sector is gradually developing with various government policy supports. However, progress is slow when compared to India. India’s success in the ICT industry has made it a global leader. What has prevented this success from spilling over to other South Asian countries? By analyzing firm-level data from both India and Bangladesh, this chapter attempts to understand the dynamics of the ICT industry in the region and, within this context, tries to provide policy recommendations helpful for both industry leaders and policy-makers. Comparison of the ICT sectors in India and Bangladesh could be instructive in determining whether successful ICT business models in India can be applied to other South Asian countries. Therefore, by analyzing the cases of the leader (India) and the follower (Bangladesh), this study is expected to provide ICT-related recommendations for regional cooperation relevant to the South Asian Association for Regional Cooperation (SAARC) Track 1 process. The ICT industry is global...
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