Abstract
India played a proactive role in determining the of South Asian Free Trade Area (SAFTA) due to its economic strength. This study highlights recent trends in Indias total trade relationship with SAFTA economies in general, and with each trade bloc members particularly during the period, from 2010 to 2019.The paper employs the compound annual growth ratetechnique to find out the growth rate of Indias exports and imports. Also, a trend analysis has been made on Indias exports and imports, total tradebalance of trade with south Asian countries. The trend shows that in general both imports and exports were increasing over time except a negative export and total trade balance with Pakistan and import trade balance with Maldives. Bhutan and Bangladesh were the leading trade partners of India in south asian region. However, depending up on the economic and political conditions of the trading countries exhibit a characteristic trend unique to their own country in trading with India.
Highlights
For the past many decades, the South Asian Economies have been relentlessly striving to attain higher fronts of development through many means, since 1990’s, South Asian Economies have made lot of hard work to augment trade and investment flows with the intention of achieving a diminution in poverty and improving growth and development in the region
The paper aims to understand the Agreementimplications on the South Asian Free Trade Area (SAFTA) launched in 2006 by the south
India’s Balance of Trade with Sri Lanka: The Indo - Sri Lanka trade relations instigate from the colonial period and rapport was strengthened by the formation of South Asian Association for Regional Cooperation (SAARC), SAPTA (South Asian Preferential Trade Arrangement) in 1995 and SAFTA (The Agreement on South Asian Free Trade Area) in 2006
Summary
Trade Area (SAFTA) due to its economic strength. This study highlights recent trends in India’s total trade relationship with SAFTA economies in general, and with each trade bloc members during the period, from 2010 to 2019.The paper employs the compound annual growth ratetechnique to find out the growth rate of India’s exports and imports. The major objectives included facilitating the cross broader movement of goods between the member states; successful implementation and application of this agreement, eliminating barriers of trade & commerce, promoting conditions of fair competition in the free trade area, joint administration and the settlement of the disputes; establishing a framework for future regional cooperation to expand and enhance the mutual benefits of the agreement, ensuring benefits in equitable manner to all states The former studies revealed that India would reap significant benefits under SAFTA. In the present paper India’s trade to South Asian countries like Bangladesh, Pakistan, Sri Lanka, Nepal, Bhutan, Afghanistan, and Maldives is subject to study and the exports, imports, total trade and balance of trade relations of these countries with India has been analyzed from 2010 to 2019 and results have been produced. Table 1:- India’s Balance of Trade to South Asian Economies (Value in US $ million)
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