According to a new World Bank report if trade restrictions are removed, Intra-regional trade in South Asia could increase from $5 billion to $20 billion and trade between India and Pakistan could jump from $1 billion to $9 billion.

The report "Promoting Economic Cooperation in South Asia", said," The unique geography of South Asia-distance and density-has the potential to raise growth through increased trade. But presently this is hindered by policy barriers."

It further added," The benefits of scale economies could be even bigger, particularly to the small land-locked countries" as regional market integration could provide the benefit of scale economies to the smaller countries to invest in infrastructure."

Nepal, for example, could double its GDP if it could export hydro-based electricity to India, an energy thirsty country.

Suggesting this can provide the much-needed trigger for opening a dialogue on regional water cooperation, the report says," Benefits of cooperation on water and climate would be immense."

It said," From the Himalayas, where glacier melt is already changing water flows in ways that remain to be fully understood, to the coastal floodplains of Bangladesh and Pakistan, South Asian countries need to adapt to climate change."

The report explained by example that cross-border cooperation on water between India, Bangladesh, and Nepal offers the only long-term solution to flood mitigation, and would benefit over 400 million people.

"Te benefits of regional cooperation for South Asia are obvious. Yet a range of political constraints prevent cooperation from happening," it said stressing "The political dynamics will need to change as the opportunity cost of non-cooperation for South Asia's poor is large. (With Input from Agencies)