Trade with Saarc up 11% in 2001-02

India’s overall trade with the South Asian Association for Regional Cooperation (Saarc) countries has posted a sharp 27.76 per cent growth during 2000-01 over 1999-00 and a 10.76 per cent increase during 2001-02 over 2000-01. Value-wise, trade has risen from $1796.99 million to $2289.48 million and to $2535.81 million during this period. Bangladesh has occupied the first place with imports of $942 million during 2001-02, followed by Sri Lanka with $629 million, according to the latest trade data available with the commerce ministry.

The data show that during 1999-00 to 2001-02, the country’s exports to these countries have jumped by a whopping 33.04 per cent from $1,394.96 million to $1,885.10 million and to $1,964.04 million. Similarly, its imports have risen from $397.63 million to $434.38 million and to $571.77 million. Among the major export items are cotton yarn fabrics, made-ups, sugar, machinery and instruments, transport equipment, cement, plastic linoleum products, rice other than basmati, and drugs and pharmaceuticals.

New Delhi has initiated several steps to boost trade with Saarc. Indo-Sri Lankan free trade agreement, which came into force from March 2000, is a major step in this direction. Further, New Delhi has been exchanging tariff concessions with other member-countries under four rounds of Sapta negotiations. The fourth and the last round was held in October-November 2002 in Kathmandu. Efforts are also being made towards a Safta as a culmination of the Sapta process.