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Kathuria, Sanjay
Macroeconomics, Trade, and Investment Global Practice
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economic growth,
economic integration,
international trade policy,
economic competitiveness,
fiscal policy,
technology development,
financial sector development,
gender and development
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Macroeconomics, Trade, and Investment Global Practice
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January 31, 2023
Biography
Sanjay Kathuria is Adjunct Professor, Georgetown University; Visiting Faculty, Ashoka University; Senior Visiting Fellow at the Centre for Policy Research, India; and Non-Resident Senior Fellow at the Institute of South Asian Studies, Singapore. Earlier, he was a Lead Economist at the World Bank in Washington, D.C. Sanjay Kathuria is one of the leading thinkers and commentators on economic integration in South Asia and the economic development of the region. In 27 years at the World Bank, from 1992 to 2019, he worked in South Asia, Latin America and the Caribbean, and Eastern Europe, including field assignments in New Delhi and Dhaka. Before joining the World Bank, he was a Fellow at the Indian Council for Research on International Economic Relations in New Delhi, from 1982-1992.
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Publication
Unlocking Bangladesh-India Trade : Emerging Potential and the Way Forward
(World Bank, Washington, DC, 2012-08) De, Prabir ; Raihan, Selim ; Kathuria, SanjayThe primary objective of this study is to analyze the impact on Bangladesh of increased market access in India, both within a static production structure and also identifying dynamic gains. The study shows that Bangladesh and India would both gain by opening up their markets to each other. Indian investments in Bangladesh will be very important for the latter to ramp up its exports, including products that would broaden trade complementarity and enhance intra-industry trade, and improve its trade standards and trade-handling capacity. A bilateral Free Trade Agreement would lift Bangladesh's exports to India by 182 percent, and nearly 300 percent if transaction costs were also reduced through improved connectivity. These numbers, based on existing trade patterns, represent a lower bound of the potential increase in Bangladesh's exports arising from a Free Trade Agreement. A Free Trade Agreement would also raise India's exports to Bangladesh. India's provision of duty-free access for all Bangladeshi products (already done) could increase the latter's exports to India by 134 percent. In helping Bangladesh's economy to grow, India would stimulate economic activity in its own eastern and north-eastern states. Challenges exist, however, including non-tariff measures/barriers in both countries, excessive bureaucracy, weak trade facilitation, and customs inefficiencies. Trade in education and health care services offers valuable prospects, but also suffers from market access issues. To enable larger gains, Bangladesh-India cooperation should go beyond goods trade and include investment, finance, services trade, trade facilitation, and technology transfer, and be placed within the context of regional cooperation. -
Publication
Attracting Investment in Bangladesh—Sectoral Analyses: A Diagnostic Trade Integration Study
(Washington, DC: World Bank, 2016-10-13) Kathuria, Sanjay ; Mezghenni Malouche, Mariem ; Kathuria, Sanjay ; Mezghenni Malouche, Mariem ; Chanda, Rupa ; Dausendschoen, Kay ; Elbert, Christine ; Gessese, Nebiyeleul ; Konishi, Yasuo ; Raihan, Selim ; Rizwan, Nadeem ; Surabian, Glenn ; Veliu, AtdheThis is volume 3 of a three-volume publication on Bangladesh’s trade prospects. Bangladesh’s ambition is to build on its very solid growth and poverty reduction achievements, and accelerate growth to become a middle income country by 2021, and share prosperity more widely amongst its citizens. This includes one of its greatest development challenges: to provide gainful employment to the over 2 million people that will join the labor force each year over the next decade. Moreover, only 54.1 million of its 94 million working age people are employed. Bangladesh needs to use its labor endowment even more intensively to increase growth and, in turn, to absorb the incoming labor. The Diagnostic Trade Integration Study identifies the following actions centered around four pillars to sustain and accelerate export growth: (1) breaking into new markets through a) better trade logistics to reduce delivery lags ; as world markets become more competitive and newer products demand shorter lead times, to generate new sources of competitiveness and thereby enable market diversification; and b) better exploitation of regional trading opportunities in nearby growing and dynamic markets, especially East and South Asia; (2) breaking into new products through a) more neutral and rational trade policy and taxation and bonded warehouse schemes; b) concerted efforts to spur domestic investment and attract foreign direct investment, to contribute to export promotion and diversification, including by easing the energy and land constraints; and c) strategic development and promotion of services trade; (3) improving worker and consumer welfare by a) improving skills and literacy; b) implementing labor and work safety guidelines; and c) making safety nets more effective in dealing with trade shocks; and (4) building a supportive environment, including a) sustaining sound macroeconomic fundamentals; and b) strengthening the institutional capacity for strategic policy making aimed at the objective of international competitiveness to help bring focus and coherence to the government’s reform efforts. This third volume provides in-depth analysis of eight different manufacturing and services sectors of the Bangladeshi economy, which help to illustrate the thematic analysis of volume 2 and ground it in sector experiences. Besides pointing to cross-cutting themes, the analysis also highlights some specific issues and actions that could help relieve constraints to faster export growth in these sectors. -
Publication
Playing to Strengths: A Policy Framework for Mainstreaming Northeast India
(Washington, DC: World Bank, 2020) Kathuria, Sanjay ; Mathur, Priya ; Kathuria, Sanjay ; Mathur, Priya ; De, Prabir ; Jensen, Michael Friis ; Kunaka, Charles ; Srinivasan, Thirumalai G.It is widely agreed that, over the past decade, accelerating infrastructure investments in India's North Eastern Region (NER) and neighboring countries, along with connectivity agreements with Bangladesh, hold immense promise for unlocking NER's economic potential. Other global trends, such as the growing incomes and consumer awareness in India and neighboring countries; a rising preference for fresh, healthy, safe, environmentally friendly, and socially responsible products; the growing role of services in manufacturing; and increasing demand for skilled resources are also very favorable for NER. Together, these developments can help NER showcase its strengths in agriculture and services, thereby developing value chains in these sectors, which will lead to sustainable, better-paying job opportunities for the people of NER. In this context, the World Bank, in consultation with stakeholders--government, private sector, and academia--analyzed two cross-cutting constraints that are encountered across all value chains and sectors in NER: connectivity and logistics, and product standards and quality infrastructure. To ground the policy in specific contexts, the team studied four sectors in depth: fruits and vegetables, spices, bamboo and related products, and medical tourism. Playing to Strengths lays out an initial policy framework for NER that integrates demand and supply and shows that, even with a low base in manufacturing, NER can leverage its strengths in agriculture and services to step up its growth. However, implementing this framework will require a different approach to doing business compared with the existing ecosystem and its associated value chains, which are mostly geared to local and/or price-conscious consumers. In capitalizing on its advantages, NER will not only accelerate its own development, but also will play an increasingly critical role in the government of India's "Act East" policy. -
Publication
Strengthening Cross-Border Value Chains: Opportunities for India and Bangladesh
(Washington, DC: World Bank, 2020) Kathuria, Sanjay ; Mathur, Priya ; Kathuria, Sanjay ; Mathur, Priya ; Gitau, Ciliaka Millicent W. ; Khanna, Aman ; Manghnani, RuchitaIt is widely agreed that, over the past decade, accelerating infrastructure investments in India's North Eastern Region (NER) and neighboring countries, along with connectivity agreements with Bangladesh, hold immense promise for unlocking NER's economic potential. Other global trends, such as the growing incomes and consumer awareness in India and neighboring countries; a rising preference for fresh, healthy, safe, environmentally friendly, and socially responsible products; the growing role of services in manufacturing; and increasing demand for skilled resources are also very favorable for NER. Together, these developments can help NER showcase its strengths in agriculture and services, thereby developing value chains in these sectors, which will lead to sustainable, better-paying, job opportunities for the people of NER. In this context, the World Bank, in consultation with stakeholders--government, private sector, and academia--analyzed two cross-cutting constraints that are encountered across all value chains and sectors in NER: connectivity and logistics, and product standards and quality infrastructure. These are discussed in Playing to Strengths: A Policy Framework for Mainstreaming Northeast India (Kathuria, S., and P. Mathur, eds., 2019, World Bank). This volume is a companion piece to that report; it analyzes four value chains--fruits and vegetables, spices, bamboo and related products, and medical tourism--and provides an assessment of how Bangladesh can benefit from NER’s increasing connectivity and growth prospects. The sector studies emphasize the need to reorient the supply base in NER toward serving the changing global demand and puts an explicit focus on women as well as the bottom 40 percent of the workforce. In light of the mutual benefit offered by economic exchange, improvements in connectivity offer a win-win opportunity for NER and Bangladesh. -
Publication
Toward New Sources of Competitiveness in Bangladesh: Key Insights of the Diagnostic Trade Integration Study
(Washington, DC: World Bank, 2016) Kathuria, Sanjay ; Malouche, Mariem MezghenniThe Diagnostic Trade Integration Study identifies the following actions centered around four pillars to sustain and accelerate export growth: (1) breaking into new markets through a) better trade logistics to reduce delivery lags; as world markets become more competitive and newer products demand shorter lead times, to generate new sources of competitiveness and thereby enable market diversification; and b) better exploitation of regional trading opportunities in nearby growing and dynamic markets, especially East and South Asia; (2) breaking into new products through a) more neutral and rational trade policy and taxation and bonded warehouse schemes; b) concerted efforts to spur domestic investment and attract foreign direct investment, to contribute to export promotion and diversification, including by easing the energy and land constraints; and c) strategic development and promotion of services trade; (3) improving worker and consumer welfare by a) improving skills and literacy; b) implementing labor and work safety guidelines; and c) making safety nets more effective in dealing with trade shocks; and (4) building a supportive environment, including a) sustaining sound macroeconomic fundamentals; and b) strengthening the institutional capacity for strategic policy making aimed at the objective of international competitiveness to help bring focus and coherence to the government's reform efforts. -
Publication
Strengthening Competitiveness In Bangladesh—Thematic Assessment: A Diagnostic Trade Integration Study
(Washington, DC: World Bank, 2016-07-15) Kathuria, Sanjay ; Malouche, Mariem Mezghenni ; Kathuria, Sanjay ; Malouche, Mariem MezghenniThis is volume 2 of a three-volume publication on Bangladesh’s trade prospects. Bangladesh’s ambition is to build on its very solid growth and poverty reduction achievements, and accelerate growth to become a middle income country by 2021, and share prosperity more widely amongst its citizens. This includes one of its greatest development challenges: to provide gainful employment to the over 2 million people that will join the labor force each year over the next decade. Moreover, only 54.1 million of its 94 million working age people are employed. Bangladesh needs to use its labor endowment even more intensively to increase growth and, in turn, to absorb the incoming labor. The Diagnostic Trade Integration Study identifies the following actions centered around four pillars to sustain and accelerate export growth: (1) breaking into new markets through a) better trade logistics to reduce delivery lags ; as world markets become more competitive and newer products demand shorter lead times, to generate new sources of competitiveness and thereby enable market diversification; and b) better exploitation of regional trading opportunities in nearby growing and dynamic markets, especially East and South Asia; (2) breaking into new products through a) more neutral and rational trade policy and taxation and bonded warehouse schemes; b) concerted efforts to spur domestic investment and attract foreign direct investment, to contribute to export promotion and diversification, including by easing the energy and land constraints; and c) strategic development and promotion of services trade; (3) improving worker and consumer welfare by a) improving skills and literacy; b) implementing labor and work safety guidelines; and c) making safety nets more effective in dealing with trade shocks; and (4) building a supportive environment, including a) sustaining sound macroeconomic fundamentals; and b) strengthening the institutional capacity for strategic policy making aimed at the objective of international competitiveness to help bring focus and coherence to the government’s reform efforts. This second volume provides in-depth analysis across seven cross-cutting themes that underpin most of the findings of pillars 1 and 2 above. -
Publication
Unleashing E-Commerce for South Asian Integration
(Washington, DC: World Bank, 2020) Kathuria, Sanjay ; Grover, Arti ; Perego, Viviana Maria Eugenia ; Mattoo, Aaditya ; Banerjee, Pritam ; Mattoo, AadityaThis report is part of a broader work program on shaping a more positive narrative on regional integration in South Asia. It is a follow-up to a recent flagship report published by the South Asia Region of the World Bank, A Glass Half Full: The Promise of Regional Trade in South Asia. E-commerce is dramatically changing the way goods and services are transacted nationally, regionally, and globally. It facilitates international trade by reducing the cost of distance and remoteness and can be more inclusive of underrepresented groups such as women, small businesses, and rural entrepreneurs. Intraregional trade in South Asia is still below its potential, and the region lags behind other parts of the world in activating the potential benefits from e-commerce. Adopting a novel yet practical approach, this report explores how e-commerce can be boosted to deepen intraregional trade in South Asia. It examines the main transacting models in the digital space and the channels through which e-commerce helps reduce transactions costs for firms and consumers. It considers the regulations, as well as the regulatory gaps, affecting private sector participation in e-commerce, focusing on data privacy, consumer protection, delivery, cybersecurity, market-access regulations, and digital payments. Finally, the report presents recommendations for regulatory reforms that could enhance e-trade, especially in a regional context and as a possible platform for greater global engagement by South Asian firms. The scale of these recommendations ranges from the modest, such as allowing cross-border payments and streamlining the customs regime, to the more ambitious, such as allowing the operation of regional e-commerce platforms and liberalizing related cross-border logistics services.