Abstract

India is known as the world's largest democracy and an important strategic partner in the global economy. The South Asian Association for Regional Cooperation (SAARC) is an economic and geopolitical alliance consisting of eight South Asian countries: India, Bangladesh, Sri Lanka, Nepal, Bhutan, Pakistan, Maldives and Afghanistan. This paper analyses recent trends and variability in India's trade relationships with SAARC countries. It also examines the causal relationship between India's exports and the per capita income of Bangladesh, Sri Lanka and Nepal during the period 2010-11 to 2022-23. The study highlights the importance of regional trade and identifies challenges affecting intra-SAARC commerce, including transit facilities, illegal trade and border trade. It emphasizes the need for appropriate policies to strengthen regional integration and attract stable foreign investment.