SAARC-India Trade and Economic Cooperation: Prospects and Difficulties

Abstract

In order to create and advance regional and economic unity among South Asian countries, SAARC was founded in 1995. One of the organization's founding members, India has always been important. Over the years, there have been variations in India's trade with SAARC countries. India maintains close trading relations with all of the SAARC countries, especially with Bangladesh, Nepal, and Sri Lanka. The volume and value of India's bilateral imports and exports are greater when compared to these three nations. In addition, it was discovered that, in terms of monetary value, Afghanistan and the Maldives had the lowest volume of exports. Given that it controls 70% of the SAARC region, both geographically and economically, India plays a crucial role in the organization. The goal of the current article was to investigate the factors that contribute to the member nations' greatest and least significant export share with India. India’s position as the main force behind trade and commerce within the SAARC region is further highlighted by the fact that it controls 70% of the region's land and 70% of its economic production. By examining the major variables impacting both high-volume trade partnerships and smaller trade contributions, the current study explores the fundamental causes of the differences in trade volume across the SAARC countries. It also examines how India's export patterns with its SAARC peers are influenced by political, economic, and infrastructure factors, emphasizing the difficulties and possibilities for strengthening regional trade alliances.