E-commerce and Digital Connectivity: Unleashing the Potential for Greater India–ASEAN Integration

Abstract

Digital connectivity and e-commerce are emerging as important drivers to connect small and medium enterprises (SMEs) in developing countries to their domestic and global markets. India and the Association of Southeast Asian Nations (ASEAN) have emerged as fastest growing e-commerce and digital markets. Studies show that digital connectivity and e-commerce will help SMEs and marginalised groups in the two economies to diversify their client base at lower costs, while consumers will have access to a wide range of products. To support digitalisation and e-commerce, several initiatives have been taken by the governments in India and ASEAN. Many of them are related to enhancing cross-country trade and collaboration. The ASEAN–India Partnership for Peace, Progress and Shared Prosperity 2016–2020 is one such initiative. However, SMEs so far have not gained much from such initiatives. This article provides an overview of the current status of digtalisation and e-commerce in India and ASEAN. It examines their comparative positions in terms of technology adaptation and policy regimes and then presents the participation of these countries in bilateral, plurilateral and multilateral agreements and forums. Apart from infrastructure issues, restrictive regulations like data localisation requirements and lack of standards along with the defensive position of countries in international forums is adversely impacting the ability of their SMEs to scale up. The article provides recommendations on use of technology to help SMEs to scale up through a joint innovative knowledge sharing and e-commerce platform.