• search

SAFTA can expand trade and investment in SAARC countries: Study

Written by: Staff

Mumbai, Mar 12 (UNI) The South Asian Free Trade Agreement (SAFTA), likely to be implemented in the middle of current year, can lead to manifold expansion of trade and investment in the region, a study says.

India, whose annual trade growth rate of 21.8 per cent in SAARC region has been higher than 18.6 per cent with the rest of the world during FY01-FY05, can gain signficantly owing to its strong manufacturing competitives in the South Asian Association for Regional Cooperation, the study adds. SAARC comprises seven countries -- Pakistan, Bangladesh, Sri Lanka, Nepal, Maldives, Bhutan and India.

However, the DHL India Trade Outlook says at present India's exports to SAARC countries are highly concentrated in terms of commodities but expects India's export basket to diversify once SAFTA comes into force in June-July. SAARC members' exports to India are restricted because India's average applied tariffs are considerably higher than other six members. India can become the largest market in the region for the remaining SAARC members if it lowered tariffs.

The intra-regional trade of SAARC countries is, however, very low, costituting just 4.7 per cent of its total trade with the world in 2004, the study says but adds, ''India's approach towards SAARC is positive and constructive.'' UNI SA MAZ AW1036

For Daily Alerts

For Breaking News from Oneindia
Get instant news updates throughout the day.

Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more