SAARC Trade Volumes
Analysis of Trade Volumes Between SAARC Countries
The overall volume of trade between SAARC countries remains much lower than its true potential, with intra-regional trade consistently hovering around just 5% of the region’s total trade, despite the vast population and strategic proximity of member states [web:5][web:8]. For comparison, regional blocs like the EU, ASEAN, and NAFTA achieve intra-bloc trade proportions of 68%, 27%, and over 40%, respectively [web:5].
Recent Trade Volumes
Intra-SAARC trade is estimated to be about $29 billion as of 2018, and despite incremental growth, it has not kept pace with the region’s economic output or global trading ambitions [web:6].
By 2024, total exports from SAARC stood at $462 billion, but intra-regional exports formed only a minor share of this volume [web:5][web:8].
Total trade (including exports and imports) for South Asia grew to $1,335 billion by 2022, but the share of intra-regional trade has continued to stagnate, with most trade occurring outside the region [web:8].
Country-wise Trade Dynamics
India is the largest contributor, accounting for approximately 83% of exports and 81% of imports within SAARC, acting as both a major exporter and importer [web:9].
Bangladesh has notable trade with other SAARC nations, but the majority of its exports still go outside South Asia [web:6].
Bilateral trade between India and Pakistan, once significant, fell sharply from $2.41 billion (2018) to only $1.2 billion by 2024. Pakistan’s exports to India dropped dramatically to $480,000 in 2024 [web:8].
Other members—Sri Lanka, Nepal, Afghanistan, Bhutan, and Maldives—collectively account for a much smaller proportion of SAARC trade volumes [web:9].
Major Goods Traded
Key exports across SAARC include textiles, garments, raw materials (especially cotton), agricultural produce, and some manufactured items [web:6][web:7].
Major imports involve mineral fuels and oils, machinery, chemicals, iron and steel, along with other industrial inputs [web:7].
Obstacles to Greater Integration
High intra-regional trade costs (about 114% of the value of goods traded) are a central limiting factor. It is paradoxically cheaper for most South Asian countries to trade with distant partners like Brazil or the United States than with neighboring SAARC countries [web:8].
Challenges include tariff barriers, poor infrastructure, restrictive visa regimes, lack of banking and logistical connectivity, and protectionist trade policies. These realities result in as much as 67% of regional trade potential remaining unrealized [web:6][web:8].
Sensitive products lists and incomplete implementation of free trade agreements (such as SAFTA) have also restricted the diversity and volume of trade [web:6].
Trade Potential Estimates
UNESCAP and SAARC studies estimate that with better integration, improved trade facilitation, and removal of key barriers, actual intra-SAARC trade could quickly double or triple, with potential volumes surpassing $170 billion—more than five times current levels [web:6][web:8].
Tapping into this potential would require strategic investment in connectivity, infrastructure, harmonized regulations, and fostering greater business and policy coordination [web:5][web:6][web:8].
Summary Table: SAARC Trade Volumes and Shares
| Indicator | Figure/Share | Year | Citation |
| Intra-SAARC trade share | ~5% | 2024 | [web:5][web:8] |
| Total South Asia trade | $1,335 billion | 2022 | [web:8] |
| SAARC export volume | $462 billion | 2023 | [web:5] |
| Potential intra-SAARC | $170 billion | 2017 | [web:6][web:8] |
| India share in SAARC | 83% exports | 2013 | [web:9] |
| Bilateral India-Pakistan | $1.2 million | 2024 | [web:8][web:13] |
References:
Intra-trade among SAARC countries remains in low range of 5pc: https://brecorder.com/news/40252960/intra-trade-among-saarc-countries-remains-in-low-range-of-5pc
The Sorry State of South Asian Economic Integration: https://houseofupsc.com/sorry-state-of-south-asian-economic-integration/
Socio Economic Data – SAARC Chamber: https://saarcchamber.org/socio-economic-data/
ENHANCING INTRA-REGIONAL TRADE IN SAARC (PDF): https://www.eximbankindia.in/Assets/Dynamic/PDF/Publication-Resources/ResearchPapers/65b153f0f01f48b0b875f282d6b1a099.pdf
Agreement on South Asian Free Trade Area (SAFTA) – SAARC Secretariat: https://www.saarc-sec.org/SAFTA
Asia-Pacific Trade Facilitation Report 2024 – ADB: https://adb.org/publications/asia-pacific-trade-facilitation-report-2024
The Future Potential and Prospects of SAARC Regional Grouping – SAGE Journals: https://journals.sagepub.com/doi/10.1177/09749284211047722
Exploring the South Asian Economic Union – Insights on India: https://www.insightsonindia.com/2024/12/27/exploring-the-south-asian-economic-union/