| ID | 137122 |
| Title Proper | SAARC and economic integration in South Asia |
| Language | ENG |
| Author | Batra, Amita |
| Summary / Abstract (Note) | Economic cooperation and integration became a part of the SAARC work agenda when the council of ministers of the member countries signed an agreement to form the South Asian Preferential Trade Agreement (SAPTA) in April 1993. The move was prompted by a desire of the South Asian economies to dismantle trade barriers following unilateral trade liberalisation as part of the systemic economic reforms initiated, first, in India, and later undertaken by other economies of the region. The economic reforms set the tone for both, a greater global integration of the South Asian economies as also increased growth momentum in the region. In the subsequent two decades, South Asia experienced high growth averaging over 5 per cent annually accompanied by a rapid pace of trade integration with the global economy. The rate of global trade integration of South Asia was the fastest among all regions in the world between 2005 and 2007.
The Indian economy emerged as the second fastest growing economy in the world. The economic dynamism and rapid global trade integration did not, however, translate into a higher level of economic integration among the South Asian economies; and intra regional trade remained at a low of around 5 per cent of the region’s total trade. The region, endowed with geographical, historical, cultural and linguistic proximity- all parameters that make the member economies the most natural trading partners, is today the least integrated region in the world. The process of economic integration in South Asia is marked by many contradictions. These are discussed below followed by the compelling regional and global imperatives to accelerate the pace of economic integration in South Asia. Finally, sub regionalism is presented as a possible way forward for regional cooperation in South Asia. |
| `In' analytical Note | Indian Foreign Affairs Journal Vol.9, No.4; Oct-Dec.2014: p.332-338 |
| Journal Source | Indian Foreign Affairs Journals 2014-12 9, 4 |
| Standard Number | South Asia |