Dear Friends,

Please provide answer for my question, its for my Project Work.

Study in details the South Asian Association for Regional Cooperation (SAARC) and its impact on Indian economy.


SAARC is a good platform for the countries to indulge economically and  gain profits. SAARC is always seen as a very good initiative to bind the south Asian countries as these nations have the highest potential to develop.The annual meetings of SAARC induces good an healthy relationship among members

Positive points:

1.Reduced tariffs: There is proposal among SAARC nations of following liberal trade policies wherein the tariffs and import  duties would be reduced for mutual benefit of nations. For India,whose CAD is already soaring,such proposals if implemented would save her lot of money.

2.Geographical and cultural diversities : SAARC nations are very diverse. Different cultures and different people demand a great variety of goods and services. Moreover,it is the densest area in the world in terms of population which can prove to be a boon as bigger population gives quicker response of the product.This can help India export its great variety of products through less regulated trade channels and earn foreign exchange.

But,it had some bad impacts on India specifically. India's relation with it neighboring countries,like,Pakistan ,has kept her from establishing sound economic relation.

1.Terrorist Disturbance- Following the recent disturbances at LoC and various allegations on Pakistan for terrorist activities make India apprehensive to make any kind of economic relation with Pakistan

2.Naxal Movement - Naxalites of Nepal have established contact with their associates in India and are encouraging illegal and anti-peace activities.

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