| Summary/Abstract |
The South Asian Association for Regional Cooperation (SAARC) region is
bestowed with geographical, historical and cultural continuity and yet it remains
one of the least integrated regions of the world. This article attempts to analyse
the factors inhibiting the economic integration of the region. The intra-SAARC
trade is analysed in view of the existence of a free trade agreement between the
member nations. The socio-development, infrastructural and economic indicators
of the nations are also compared. The reasons for the existence of mistrust
and hostility between the SAARC countries are discussed, from India’s
evident dominant position in the group as a cause for insecurity among other
members to the political standoffs between the member nations. While there
exists immense potential for greater economic integration and gains from trade,
the lack of basic transport-transit connectivity, technical harmonisation and nontariff
barriers are found to reinforce trade costs and inhibit legal trade. Ensuring
better connectivity is recognised as a prerequisite by the nations unanimously;
however, their political differences have kept them away from making much
headway in this regard.
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