More opportunities in SAARC region, SAFTA to accelerate growth

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More opportunities in SAARC region, SAFTA to accelerate growth

The Union government on Friday (March 28) asked the Indian trade and industry to look for opportunities in South Asian Association for Regional Cooperation (SAARC) region, in the wake of slowing down of American and European economies.

CJ: merinews network

Sat, Mar 29, 2008 13:33:47 IST

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“SAFTA PROVIDES a good opportunity for increasing the regional trade in South Asia, and South Asian business should diversify and look at the opportunities within the region, particularly in view of the current slowdown in the US and global economy,” said GK Pillai, commerce secretary, while addressing the FICCI-ADB-UNCTAD seminar on ‘Regional Cooperation in South Asia: Benefits from SAFTA and the Way Ahead’.

Citing the example of imports of cements from Pakistan into India, Pillai said that there were inherent complementarities within the region that needed to be effectively tapped to integrate further.

Pillai said that there was greater confidence among the people of the region due to the high economic growth witnessed in SAARC region, particularly India. Given its economic size and large population base, South Asia offers a huge opportunity for business.

He, however, called for setting up an adequate safeguard mechanism in SAFTA treaty, so that it allayed the fears of the smaller countries and became acceptable to them.

“This is necessary in order to alleviate the perceptions of the smaller countries about the possible influx of goods and services from India into their territories,” commented Pillai. He further stressed on the need for improving facilities within the region to create more trade opportunities by sea and road.

The commerce secretary also pointed out that despite the security concerns prevailing in the region, trade had been taking place smoothly between the member-countries.

This seminar was second in the series to obtain stakeholders’ feedback on the draft study prepared by the ADB and UNCTAD on benefits from SAFTA and the way ahead. The study reveals that SAFTA will contribute to stronger economic growth in the region and gains would be much higher if measures to establish more efficient regional transportation and infrastructure networks are simultaneously undertaken.

Contrary to popular perceptions, the study suggests, India and Pakistan are not the most important markets for each other. Over 60 per cent of the increase in exports to the region of both India and Pakistan would be to Bangladesh.

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