The untapped potential of Saarc trade
India's trade with neighbours has lagged behind its trade with the rest of the world
Narendra Modi’s invitation to leaders of neighbouring countries for his swearing-in ceremony could pave the way for better relations. If ties improve, one clear beneficiary will be regional trade. Over the past decade, India’s trade with South Asian Association of Regional Cooperation (Saarc) nations has lagged behind its trade with the rest of the world, commerce ministry data show.
When India helped set up Saarc in 1985, it was expected to boost trade in the region. But the grouping has failed to live up to its promise. While India’s trade with members of the Association of South East Asian Nations (Asean) grew at an above-average pace over the past decade, the growth in trade with Saarc grew at a below-average pace compared with the rest of the world.
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