The Hindu Business Line : `Give duty-free market access to neighbours'

New Delhi March 31 As the largest member of SAARC, India should give duty-free market access to its less developed neighbours such as Bangladesh, Maldives, Bhutan and Nepal, according to the Associated Chambers of Commerce and Industry (Assocham).

The size of Indian industry and economy is large enough to accommodate the requirements of these countries, according to the chamber.

India has extended a commitment to review its non-tariff barriers and generate better access to the Indian market as part of the South Asia Free Trade Agreement.

Indian economy, which is expected to be a trillion dollar economy by March 2008, has the responsibility of sharing the fruits of growth with its neighbours, according to the chamber.

The SAARC region accounted for a mere 2.5 per cent of India's total foreign trade in April-October 2006. Therefore, the opening up of market under the trade agreement is not likely to have a major impact on the domestic market.

In fact, the imports from the SAARC countries amounted to only $0.857 billion, contributing just 0.82 per cent to the total imports over the same time period.

The total imports stood at about $104 billion.

Exports to region

As far as exports to the region are concerned, they were worth $3.56 billion in the above said period, forming almost five per cent of India's total exports, which were close to $71 billion in April-October 2006.

India has been running a comfortable trade surplus with the SAARC region in the past, it said.