The Prime Minister's suggestions for a business traveller card, special purpose facility for financing regional infrastructure and cross-border industrial corridors would push prosperity in the region, industry body CII said today.
"CII strongly welcomes PM's suggestion for a 3-5 year Business Traveler Card for SAARC nationals and the Special Purpose Facility for regional connectivity infrastructure, which would impart impetus to the dream of shared prosperity," CII Director General Chandrajit Banerjee said.
"We hope that PM's call for simpler procedures, common standards, and better facilities would contribute to faster action towards trade and investment linkages on the SAARC platform," he added.
The industry body however expressed disappointment that several trade facilitation agreements which were on the table could not be signed. The SAARC Motor Vehicle Agreement for the Regulation of Passenger and Cargo Vehicular Traffic would lead to seamless movement of cargo, personal vehicles and passengers across land borders.
The SAARC Regional Railways Agreement too would harness the economic potential of the region, while the SAARC Framework Agreement for Energy Cooperation (Electricity) could ensure integrated operation of the regional power grid.
"We urge SAARC leaders to finalise the agreements that would promote trade facilitation and hope that these would be signed at the earliest. We feel that these proposed agreements will greatly help in facilitating the flow of trade and reduce the cost of doing business across the South Asian region. Intra-regional trade within SAARC can drive poverty reduction and improve development indicators," CII said.
Seeking to strengthen economic ties within the SAARC region, Prime Minister Narendra Modi today proposed a special purpose facility to finance infrastructure projects and called for common standards to speed up trade activities.
"Let's make it even easier for our businesses through a SAARC Business Traveller Card," Modi said in his address to leaders at the 18th SAARC Summit.
According highest priority to infrastructure development, Modi said the proposed Special Purpose Facility would help in funding projects in the region.
"Cross-border investments into other SAARC countries to export to India would help balance the trade surplus with the SAARC member economies, which is presently a concern," stated Banerjee.
India's exports to South Asian countries stood at USD 17,503.84 million in 2013-14 (5.56 per cent of India's total exports). India's imports from South Asian countries stood at USD 2,472.98 million in 2013-14 (0.54 per cent of India's total imports).
