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Also called as SAFTA and South Asian Agreement on Trade in services.

(d) Agrarian nature of economies makes trade less.

(e) Protectionism with low economic reforms reduces scope of trade.

(f) Bilateral issues like border, migration, river waters etc.

(g) Lack of infrastructure and connectivity in the region.

(h) China challenge - makes neighbours dependent on trade with China.

Measures to overcome the challenges:

(a) India should act under Gujral doctrine & share fruits of its economic growth with neighbours.

(b) Revive SAARC and start negotiations on SAFTA.

(c) Reduce the dependence on China by China+1 strategy.

(d) More FTA's & Preferential trade agreements among members.

(e) Bring BBIN-MVA for trade & connectivity.

(f) Build infrastructure to act as a connectivity option for integration of South and...

(g) Learn from examples of EU & ASEAN's successful trade engagements.

(h) Step up liberalisation of the economies.

(i) Overcome trade deficit and trust deficit by negotiations.

China has encircled India by CPEC, CMEC and Hambantota through its debt trap diplomacy, so India needs to increase its economic engagement to handle the 'China challenge' & for regional integration.