Globalisation and Indian Economy Report
India's Intra-SAARC Trade Position
During The Last Decade
The South Asian Association for Regional Cooperation (SAARC) is an organisation of South Asian nations, which was established on 8 December 1985 when the government of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka formally adopted its charter providing for the promotion of economic and social progress, cultural development within the South Asia region and also for friendship and cooperation with other developing countries. It is dedicated to economic, technological, social, and cultural development emphasising collective self-reliance. It is headquartered in Kathmandu, Nepal. Its seven founding members are Sri Lanka, Bhutan, India, Maldives, Nepal, Pakistan, and Bangladesh. Afghanistan joined the organization in 2007. Objectives of SAARC
The objectives and the aims of the Association as defined in the Charter are: * to promote the welfare of the people of South Asia and to improve their quality of life; * to accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realize their full potential; * to promote and strengthen selective self-reliance among the countries of South Asia; * to contribute to mutual trust, understanding and appreciation of one another's problems; * to promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields; * to strengthen cooperation with other developing countries; * to strengthen cooperation among themselves in international forums on matters of common interest; * to cooperate with international and regional organisations with similar aims and purposes. Principles of SAARC
* Cooperation within the framework of the ASSOCIATION shall be based on respect for the principles of sovereign equality, territorial integrity, political independence, non-interference in the internal affairs of other States and mutual benefit. * Such cooperation shall not be a substitute for bilateral and multilateral cooperation but shall complement them. * Such cooperation shall not be inconsistent with bilateral and multilateral obligations.
India’s Trade with SAARC
The following graphs show the proportion of India’s trade with SAARC with respect to its total trade with the world.
1. On an average, India’s export to SAARC as a proportion of its exports to the rest of the world was 5.06%.
1. On an average, India’s import from SAARC as a proportion of its imports from the rest of the world was 0.73%.
India’s Exports to SAARC
India’s total export to SAARC as a proportion of India’s exports to the rest of the world in the last decade (2002 - 2011) has been as follows: 1. In the range of 3.90% - 6.33 %
2. The lowest point (3.90 %) had occurred in 2009.
3. The highest point (6.33%) had occurred in 2003.
4. On an average, India’s export to SAARC as a proportion of its exports to the rest of the world was 5.06%. 5. The latest figure (2011) for the same was 4.12%.
The following pie-chart shows India’s top 10 exports to SAARC in 2002-2011.
1. India’s total export to SAARC accumulated over the decade (2002-2011) was 69,303,120,000 USD. 2. The top 5 exports to SAARC were (In order of their ranks): a. Mineral fuels, oils, distillation products, etc
- 11,579,338,000 USD b. Cotton
- 7,520,842,000 USD
c. Vehicles other than railway, tramway
- 5,891,309,000 USD d. Cereals
- 3,731,544,000 USD
e. Organic chemicals
- 3,257,238,000 USD
The following line graph illustrates the trends in India’s top 5 exports to SAARC over the last decade.
1. We find that except for “Vehicles other than railway, tramway”, all other products saw a sharp decline in export values in 2009....
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