1. Business Possibilities in SAARC
Aayush Arora
Ashay Jain
Eshita Singh
Luke Noronha
Utkarsh Kapur
Study Group 1

2. Introduction SAARC – South Asian Association for Regional Cooperation
SAARC is an economic and political organization
SAARC was established on 8 December 1985
Headquarter - Nepal
SAARC provides a platform to South Asia people to work together
Objective of SAARC – to promote economic and social development in member states

3. Objectives To promote welfare of people
To promote economic, social and cultural
development
To understand and appreciate one
another’s problems
To become self-reliance
To strengthen cooperation with other developing countries

4. SAARC Countries India 5. Bangladesh Nepal 6. Maldives
Pakistan Bhutan
Sri Lanka Afghanistan

5. Integrated Program of Action (IPA)
1. Agriculture
6. Transport
2. Postal Services
7. Rural Development
3. Science and Technology
8.Telecommunications
4. Sports, Arts and Culture
9. Meteorology
5. Health and Population activities

6. Reasons for formation of SAARC
This region is poor and over populated
Predominance of agriculture
Central location of Asia
All countries have some cultural background and history

7. Major activities

8. SAARC Preferential Trading Arrangement (SAPTA)
SAPTA was signed on 11 April 1993
To promote mutual trade and economic development within SAARC region
Basic principles:
Mutuality of advantages of trade reforms
Preferential measures in favor of Least Developed States

9. South Asian Free Trade Area (SAFTA)
It creates free trade area in the region
Zero customs duty on trade of all the products
Promotes fair competition in the free trade area
Equitable benefits to all
Replace SAPTA, which was limited in its scope 

10. Advantages of SAARC Economic welfare among participating nations
Comparative and absolute advantages due to increased cooperation among nations
Negligible transportation costs
Use of Bangladesh’s port, by other landlocked countries, to exploit unutilized resources

11. Trends in SAARC Nations

12. GDP ( Current US $)
Afghanistan
(In billions)
Bangladesh
Bhutan
India
Maldives
Nepal
Sri Lanka
Pakistan
2012
20.53
133.35
1.82
2.50
19.20
68.40
224.3
2013
20.04
149.99
1.79
1.86
2.70
19.30
74.30
231.2
2014
20.05
172.88
1.95
2.04
3.09
19.80
80.02
244.3
2015
19.33
195.07
2.05
2.09
3.43
21.10
82.30
271.05
SOURCE: World Bank data (

13. Population
Afghanistan
Bangladesh
Bhutan
India
(in billion)
Maldives
Nepal
Sri Lanka
Pakistan
2012
155,257,387
753711
1.264
385000
2013
157,157,394
754637
1.279
393000
2014
159,077,513
765088
1.295
401000
2015
160,995,642
774830
1.311
409163
SOURCE: World Bank data (

14. Gross Enrollment Ratio
Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Sri Lanka
Pakistan
2012 -
91.415
2013
89.815
2014
101.27
93.563
2015
SOURCE: World Bank data (

15. Life Expectancy (in years)
Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Sri Lanka
Pakistan
2012
59.68
70.86
68.732
67.29
76.462
68.823
74.531
65.717
2013
60.028
71.245
69.103
67.66
76.630
69.222
74.654
65.964
2014
60.375
71.626
69.471
68.014
76.773
69.605
74.795
66.183
2015 -
SOURCE: World Bank data (

16. Gross National Income (in US $)
Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Sri Lanka
Pakistan
2012
700
950
2320
1480
5960
690
3360
1260
2013
1010
2330
1520
6000
730
3490
1360
2014
660
1080
2370
1560
6480
740
3650
1400
2015
610
1190
2380
1600
6950
3800
1440
SOURCE: World Bank data (

18. Run-Through of clipping
Delegates of SAARC nations during the 'Buyer and Seller Meet’, stated to strengthen trade ties with India
“Promotion of bilateral trade with the participating SAARC countries”
“Afghanistan has a trade deficit of 90 per cent where import is far more than exporting potential” 

19. Cont. “Afghanistan expects expertise and technology from India”
“Afghanistan has become more inclined toward to the economic oriented system than political one”
“Bhutan import edible products to heavy machinery from India lieu of Hydel Power”
“India is biggest business partner with Bhutan and Bhutan always look upon investing on their basic infrastructure”

21. Run-Through of clipping
Provision for business visas for 3 to 5 years for SAARC businessmen
Move has been taken in order to boost regional trade among SAARC Nations
Special visas to SAARC businessmen has been issued in order to invite SAARC nations to invest in India
Move will improve Political relations and also the two-way trade and investments in SAARC countries

22. India’s bilateral trade with SAARC nations

23. India’s bilateral trade with SAARC’s other nations
(in US $)

24. India’s exports to SAARC

25. India’s imports from SAARC

26. Trends of India’s total trade with SAARC

27. Future of SAARC India does not wants to elevate China’s observer
SAARC has the potential to emerge as an active centre of power in the world as SAARC comprises 3% of the world’s area, 21% of the world’s population and around 9% of the global economy
SAARC’s future lies in the initiatives taken by India

28. Cont. Pakistan creating a greater South Asia economic alliance
SAARC can emerge as an attractive market for developed countries like Asia, Europe and America

29. Reasons for slow growth
Low level of trade between two largest partners - India and Pakistan
Lack of ‘political will’ to make SAARC a dynamic group
The difference in power between India and other SAARC countries

30. Cont.
Economic interests are dealt bilaterally instead of multilateral agreements
Constant conflicts between two largest partners- India and Pakistan

31. Way Forward…..
Irritants between two largest partners - India and Pakistan should be removed
South Asian countries should abolish Non-Tariff Barriers
Expansion in travel by citizens of SAARC will encourage trade and investment

32. Cont.
Expansion in travel will strengthen cross-cultural ties among SAARC nations
People to people contact will influence ‘political will’