IB ASSIGNMENT

G33 INTERNAL ASSESMENT

Name- Dev Shah Roll no 22BC691 Tute Group- G33. Submitted to- Mr. Abhisekh Kumar Yadav
GLOCAL PRODUCT IN INDIA
CASE ON CADBURY A SUBSIDIARY OF Mondelez ltd

Cadbury India, a subsidiary of Mondelez International, is one of

the leading chocolate and confectionery manufacturers in India.
Founded in 1948, Cadbury has established itself as an iconic brand known for its
delicious chocolates, innovative products, and strong commitment to quality. Over
the years, Cadbury has become synonymous with indulgence and has captured the
hearts of millions of consumers across the country. With a wide range of products
catering to various tastes and preferences, Cadbury India has successfully diversified
its portfolio beyond chocolates to include items like biscuits, beverages, and candies.
Some of its popular offerings include Dairy Milk, 5 Star, Perk, Bournville, and Gems,
among others.

Let's divide the journey of Cadbury in India into below segments:

1. Entry to India

2. Failure to Success journey - Marketing campaigns

3. Innovation in the race

4. Change in customer psychology - Marketing Strategy

ENTRY in INDIA :

Cadbury entered the Indian market right after independence and cracked the retail

and local stores network and started selling the only product they have,

CHOCOLATES. Cadbury started concentrating on children ( the strategy used in the

Western countries ) and to strengthen the supply chain , they started giving high

margins for the local vendors & stores. Local players are happy with it and even

Cadbury is making high profits with the chocolates they launched in the market with

less price 5/- , 10/- , 15/- , 20/- .

But here is where an unexpected turn and Failure in the business started in INDIA i.e.,

Authority influence Dental Doctors started saying that Chocolates are the reason for

children's tooth problems.

Failure to Success journey - Marketing

Hurdle 1 (Authority Influence) :

Now , as expected Cadbury is not in profits but in high losses . To overcome this state

Cadbury analysed that it is important to make sure that elders need to buy the

chocolates since children request to buy but elders need to be convinced to buy

Chocolates.

Cadbury started running many marketing campaigns for different age groups and

used the most valuable thing in consumers is their consciousness.

All the advertisements started displaying elders and old people buying chocolates

and eating them , which made children not just request but to demand . Once the

elders start tasting the chocolate , Cadbury knows how to increase the repeat

customer %.

Hurdle 2(competition):

Now , Competitors of Cadbury started exploiting the advantage of the marketing

campaigns runned by Cadbury and rocketed the sales. Biggest competitors to

Cadbury Dairy Milk are MUNCH , Hershey’s etc .

The Indian mentality of buying something more for less money made Munch , which

is just 5/- , top player . Cadbury adapted the same and launched its variant PERK . Here

is the marketing game played by Cadbury.

Cadbury started the PERK variant marketing with Top celebrities in INDIA and also

used the trending hot topics of India like Cricket , Aliens etc and started selling the

Perk variant
Also, since Perk comes under Waffy and not Chocolate , the profits margin increased

and investment and cost decreased.

Innovation in the race:

There was a time when Cadbury lost the important aspects in business and that is

Consumer Trust.

There was news regarding the insects and microorganisms in Cadbury chocolates

and it became so viral in just a few days that the sales of chocolates dipped so badly .

The main reason for the insects in chocolates are the local Go downs and bad storage

spaces by the Kirana stores and supermarkets , no proper storage spaces etc. Now ,

Cadbury lost the Trust of consumers and for a few months’ imports were also stopped.

Cadbury restarted the packaging process for all the chocolates they have produced

and this time they started using a metallic outer pack with AL foils wrapped over the

chocolate. This solved the problem of storage and to make customers trust Cadbury

again they roped AMITABH BACHAN for marketing .

( Whenever any company wants to gain consumer trust , they always rope in Amitabh

ji for marketing . Prime examples are Govt ads of Polio , even Covid vaccination , First

cry , Maggi , Kalyan jewellery , Parker Pens , even in Finance industry )

Customer Psychology - Marketing strategy:

Dairy Milk started the marketing advertisements with Indian sentiments and started

targeting the festivals and launched Festival Variants.

In every advertisement campaign they mention the constant and same words which

will attract Indian consumers i.e., Family , Share , Friends , Love and launched every

variant which relates to Family functions , celebrating Love , Teenage . (Ex: Silk ,

Celebrations). This made Cadbury a go to product on any occasion

Most importantly in every advertisement campaign there will be 2 or more persons

who share the same chocolate , and this brilliant idea brought more consumers to

Cadbury.

Psychologically , Cadbury made consumers share the chocolate so that at the price of

one chocolate 2 can eat but here is the catch , Cadbury indirectly made a new

consumer for a variant which costs around 70/-++ . If a new consumer had to taste

Cadbury, then they go for a low-price variant . But since some of your friends or

Beloved shared you a dairy milk SILK then you tend to buy the same again.

Fun and interesting fact is that Teenagers started buying chocolate on Valentine’s Day

or any other day to their GFs by just looking at the Advertisement of Cadbury.

This is how Cadbury from a chocolate company became a BRAND for celebration with

a tagline “ Kuch acha ho jaye , Meeta hojaye”, “ Shubh Araamb

Initial Challenges:
When Cadbury entered the Indian market, it faced several challenges, primarily
centred around the stark contrast in taste preferences between the US market, where
it originated, and the Indian market. Indian consumers found Cadbury's existing
product offerings too bitter and not suited to their palate, which posed a significant
barrier to acceptance and market penetration.

Challenges Faced:
 Taste Preferences: Indian consumers preferred sweeter, milkier chocolates
with unique local Flavors, which were different from the rich and creamy
chocolates popular in the West.
 Cultural Nuances: Cadbury had to navigate cultural nuances and consumption
habits unique to India, such as the significance of festivals and the tradition of
exchanging sweets during celebrations.

Adaptation Strategies:
 Localized Flavors: Cadbury quickly recognized the importance of adapting its
product offerings to suit Indian taste preferences. It introduced localized
Flavors such as Silk (a creamy variant), Fruit & Nut (incorporating dried fruits),
and Crackle (featuring crispy rice), which resonated well with Indian
consumers.
  Innovative Packaging and Marketing: To capture the attention of Indian
consumers, Cadbury revamped its packaging to make it more vibrant and
appealing. It also launched marketing campaigns that emphasized the
emotional appeal of chocolates, positioning them as indulgent treats for
special occasions and celebrations.
 Promotional Tie-ups: Cadbury leveraged the popularity of Indian festivals like
Diwali, Raksha Bandhan, and Holi to promote its products through special
edition packaging, festive-themed advertisements, and promotional offers.
These tie-ups helped Cadbury establish a strong association with key cultural
events in India.
Cadbury Dairy Milk - "Kuchh Meetha Ho Jaye":
Concept: This campaign aimed to create an emotional connection with
consumers by associating Cadbury Dairy Milk with moments of celebration, joy,
and togetherness. It showcased various scenarios where people from different
walks of life come together to share Cadbury Dairy Milk chocolates,
symbolizing the sweetness of relationships.
 Affordable Pricing: Recognizing the diversity of the Indian market, Cadbury
introduced smaller pack sizes and adopted affordable pricing strategies to
make its products accessible to a wider segment of consumers, including those
in rural areas and lower-income groups.
 Incorporating Vegetarian Elements: In addition to adapting Flavors, Cadbury
also addressed the dietary preferences of Indian consumers by ensuring that
its chocolates were suitable for vegetarians. This involved replacing non-
vegetarian ingredients with vegetarian alternatives, such as using plant-based
gelatine instead of animal-derived gelatine.

Through its proactive adaptation strategies, Cadbury successfully overcame the initial
challenges it faced in the Indian market. It built a large and loyal customer base by
offering a diverse portfolio of chocolates tailored to the varied tastes and preferences
of Indian consumers. Today, Cadbury is one of the leading chocolate brands in India,
known for its innovative products, strong brand presence, and deep-rooted cultural
associations.
ASSIGNMENT 2

Explain how EU is a political union

Before knowing how European union is political union
first, we have to understand what is political union

A political union is a type of state, system or entity (such as

an autonomous territory of a country), which is composed of or created out of smaller
states. The individual states share a common central government and the union is
recognized internationally as a single political entity. A political union may also be
called a legislative union or state union.
It is the ultimate type of economic integration whereby member Countries achieve
not only monetary and fiscal integration but also political integration.

A political union is a form of integration where sovereign states agree to form

a common political structure that governs them collectively. It involves a
deeper level of cooperation than simple economic or military alliances.

A political union is a distinct form of polity that does not require consensus on
demos (the people), telos (purpose), ethos (common values), or the locus of
sovereignty. The European Union (EU) is a political union that has evolved from
a purely economic union to a diverse organization that spans many different
policy areas. The EU operates as a political system, but it is not a state. It has a
set of institutions that make decisions and rules together, concerning the
relations between and within these institutions

The EU is known as a political union because IT satisfies all the conditions of

political union. It has a common democratic system Such as a common judicial
body and a common set of institutions that make decisions and rules together,
a common set of laws and regulations, and a common foreign policy. The EU
has the power to make collective decisions that have an impact on society
across the entire system, affecting daily life for people living in the EU

ORIGIN OF EU
The EU as a political union that has its origins in WORLD WAR II attempts to
integrate European economies and prevent future conflicts. It consists of
seven major institutions and dozens of smaller bodies that make law,
coordinate foreign affairs and trade, and manage a common budget. The EU
is a powerful player on the world stage, but the complexity of its many
institutions can often confuse. The EU's institutions have steadily expanded
and strengthened their authority as member states, with the aim of deepening
integration in pursuit of peace and economic growth

The main institutions of the European Union (EU) are the European Council,
the European Commission, the Council of the European Union, and the
European Parliament. The EU's institutional framework also includes the Court
of Justice of the European Union, the European Central Bank, and the Court of
Auditors.

Here's how the European Union (EU) has all the features of political union:

1. Shared Sovereignty: In a political union, member states share some

aspects of their sovereignty with the union's institutions. In the EU, this
is evident in several ways:
● Supranational Institutions: The EU has supranational institutions
like the European Commission, European Parliament, and
European Court of Justice. These institutions have powers that go
beyond what typical international organizations possess. For
example, the European Commission proposes legislation, the
Parliament and Council pass laws, and the Court ensures legal
consistency across member states.
● Common Decision-Making: The EU makes decisions through a
complex process involving negotiations between member states
and EU institutions. While member states retain control over
certain policy areas, they also agree to abide by EU decisions in
areas where the EU has authority, such as trade, competition, and
environmental regulations.
2. Legislative and Executive Functions: A political union typically has a
legislative body responsible for making laws and an executive body
responsible for implementing and enforcing those laws. The EU satisfies
these functions through:
● European Parliament: Directly elected by EU citizens, the
Parliament represents their interests in the legislative process. It
co-legislates with the Council of the EU on most EU laws.
● European Commission: Acting as the executive arm, the
Commission proposes legislation, implements policies, and
ensures compliance with EU law. Its members are appointed by
member states but are expected to act independently in the EU's
interest.
 ● Council of the EU: Comprising ministers from member states, the
Council represents national governments and shares legislative
power with the Parliament.
3. Legal Framework and Supremacy: A political union typically has a legal
framework that supersedes national laws in certain areas. The EU
achieves this through:
● EU Law Supremacy: EU law takes precedence over national laws
within areas of EU competence. This principle, established by the
European Court of Justice, ensures uniformity and consistency in
the application of EU rules across member states.
● European Court of Justice (ECJ): The ECJ interprets EU law,
resolves legal disputes between member states and EU
institutions, and ensures that EU law is applied uniformly and
effectively.
4. Common Policies and Objectives: Political unions often pursue common
policies and objectives for the collective benefit of member states. The
EU has developed extensive policies and objectives, including:
● Common Market: The EU's Single Market facilitates the free
movement of goods, services, capital, and people among member
states, promoting economic integration.
● Common Foreign and Security Policy: While member states retain
sovereignty in foreign policy, the EU coordinates positions on
global issues and conducts joint actions through its High
Representative for Foreign Affairs.
● Common Standards and Regulations: The EU sets common
standards and regulations in various areas, from product safety to
environmental protection, ensuring a level playing field and
harmonized rules across the union.
5. Citizenship and Rights: Political unions often grant rights and privileges
to citizens beyond those provided by national governments. The EU does
this through:
● EU Citizenship: Every citizen of an EU member state is also an EU
citizen, with the right to move, reside, and work freely within the
EU. EU citizens enjoy additional rights, such as the right to petition
the European Parliament and the right to consular protection in
non-EU countries.
● Fundamental Rights: The EU upholds fundamental rights and
freedoms, as outlined in the EU Charter of Fundamental Rights.
 These include rights to equality, freedom of expression, privacy,
and fair treatment under the law.

SOME OF THE FEATURES OF The European Union (EU) has 27 member

countries:

● Founding members: Germany, France, Italy, the Netherlands, and

Belgium
● Other members: Austria, Bulgaria, Croatia, Cyprus, Czech Republic,
Denmark, Estonia, Finland, Greece, Hungary, Ireland, Latvia, Lithuania,
Luxembourg, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, and
Spain
● The EU's "Big three" are France, Germany, Italy. These four countries are the
only EU members that are also full members of the G7, G8, and G20.
● The EU's five largest economies are Germany, France, Italy, the
Netherlands, and Belgium. Ireland and Denmark are the next largest
economies
● Germany has the most seats in the European Parliament. And it is the most
powerful country in the whole EU

● THE UK which was the past member of EU has exited from the EU in the
year 2020

Citation (references)

Citations:
[1] https://www.gov.uk/eu-eea
[2] https://www.fmprc.gov.cn/eng/gjhdq_665435/3265_665445/
[3] https://en.wikipedia.org/wiki/European_Union
[4] https://www.britannica.com/topic/European-countries-by-area
[5] https://simple.wikipedia.org/wiki/List_of_European_countries_by_area
Assignment 3

Explain the Implications of one of the international trade theories in real world.

The theory of comparative advantage in real world situation

I am taking the example of theory of comparative advantage to show its implication in the
real world

The theory of comparative advantage explains trade between nation to

be the outcome of possessing a relative advantage in the production
of a particular commodity. A country has a comparative advantage in
producing a product if the opportunity cost for producing it is lower at
home than in a foreign country
The theory of comparative advantage, explains trade between nations in a situation
where one country is more efficient in the production of both tradable commodities.
It was given by David Ricardo, who stated that both countries would continue to gain
from trade even if one is more efficient in the production of both goods. Ricardo
explained his theory using the economic concept of comparative advantage

IMPLICATION IN REAL WORLD

Comparative advantage is a concept that is utilized widely in the real world, and its

importance cannot be overstated. It is often the reason why countries trade with each

other, and why some industries within a country flourish while others do not. In this

section, we will explore some real-world scenarios where comparative advantage has

played a key role and helped to create a win-win situation for all parties involved.

1. International trade: One of the most significant examples of comparative advantage

in action is international trade. When countries trade with each other, they do so
because they can produce certain goods and services more efficiently than others . For
example, Japan produces high-quality electronics at a lower cost than other
countries, while Saudi Arabia has an abundance of oil reserves. By specializing in these
areas of production and trading with each other, both countries can benefit from the
exchange.

2. Regional specialization: Comparative advantage also plays a role in regional

specialization within a country. For example, California is known for its high-quality
wine production, while Texas is known for its oil reserves. By focusing on these
industries, both regions can maximize their production and profits, which benefits the
overall economy.
3. Labor specialization: Labor specialization is another example of comparative

advantage at work. When individuals specialize in a particular skill or trade, they can

become more efficient and productive in that area. This, in turn, benefits the economy

as a whole by increasing the overall output of goods and services.

4. Natural resource endowment: Countries that are rich in natural resources, such as

oil or minerals, have a natural advantage in these industries. For example, Saudi Arabia

is one of the largest oil producers in the world, which gives it a significant advantage

in the oil industry. By specializing in this area and exporting their resources to other

countries, they can benefit from the exchange.

5. Technological advancements: Finally, technological advancements can also create

comparative advantages. Countries that invest heavily in research and development

can create new technologies that give them an edge in certain industries. For

example, the United States is a leader in the technology industry, which has helped it

to maintain a comparative advantage in this area.

Comparative advantage is a crucial concept that plays a significant role in the real world. By specializing
in certain areas of production and trading with each other, countries, regions, and individuals can benefit
from the exchange. Whether it's through international trade, regional specialization, labor specialization,
natural resource endowment, or technological advancements, comparative advantage helps to create a
win-win situation for all parties involved.
ASSIGNMENT 4

NOTE ON INDIA UK FTA

The India-UK Free Trade Agreement (FTA) has been a topic of discussion for several

years, with the two countries aiming to deepen their economic ties. The FTA

negotiations were initiated in May 2021, following the UK's exit from the European

Union, which allowed it to negotiate trade agreements with other countries

independently. The UK government views India as an "important partner" and sees a

trade deal with India as an opportunity to "deepen the India-UK relationship and

support the UK's strategy of tilting towards the Indo-Pacific and championing free

trade".

The potential benefits of an FTA between the UK and India include increased

opportunities for UK services and investment, supporting innovation and trade in the

digital era, creating jobs for UK workers, and boosting economic activity in both

countries' areas of competitive strength. The UK government estimates that an FTA

could increase bilateral trade by up to £28 billion per year and potentially increase UK

GDP by around £3.3 billion in 20351.

However, the negotiations have faced challenges, with several areas of disagreement,

such as the UK's demand for a broader reach to the Indian market for its export items

and India's concerns over Scotch whiskey and visa concessions for business travelers.

As of March 2024, the negotiations are ongoing, with both Prime Ministers Narendra

Modi and Rishi Sunak having discussed the progress made on the FTA.

 The India-UK economic relationship has been growing, with India being the
second largest source of students studying in the UK and the UK being the
largest market in Europe for Indian IT services. The two countries have a strong
bilateral relationship, with trade and investment being one of the most
important underpinnings
 The FTA is expected to provide reduced barriers to trade in goods, increased
opportunities for UK services and investment, supporting innovation and trade
in the digital era, more jobs for UK workers, and creating opportunities for
businesses across the UK, including small and medium-sized enterprises.
  The UK government has stated that any deal with India must work for UK
consumers.
 India is the third-largest exporter of services to the UK, and the FTA could
potentially broaden access to the UK market for service firms in India. It could
also bolster drugs and pharmaceutical industries of both countries. India is
looking to augment ties with a developed, service-oriented UK economy,
increase market access for goods such as textiles and pharmaceuticals, attract
UK investment and ease UK work permits for Indian professionals.

The FTA is expected to provide significant economic gains for both countries. One of

the few model-based studies undertaken by the UK Government estimated that total

bilateral trade in goods and services could increase by up to £10 billion per year by

2035, depending on the depth of the agreement. The UK’s GDP could increase by

between GBP3.3 billion to GBP6.2 billion by 2035 and India’s GDP by between GBP3.7

billion to GBP7.8 billion. A deeper agreement also indicates gains for workers through

a rise in wages in India by 0.95 %, and in the UK by 0.35%.

Problem occurring implementing the agreement between both countries

There are 26 chapters in the agreement, which include goods, services, investments
and intellectual property rights.

The Indian industry is demanding greater access for its skilled professionals and
peoples from sectors like IT, and healthcare in the UK market, besides market access
for several goods at nil customs duties.

On the other hand, the UK is seeking a significant cut in import duties on goods such
as scotch whiskey, automobiles, lamb meat, chocolates and certain confectionary
items
Key issues in the India-UK trade agreement negotiations:

1. Services and Investment: The UK wants India to liberalize its services markets in
areas such as telecommunications, finance, and legal services. However, India is
apprehensive due to powerful domestic lobbies. A shallow FTA without considerable
services liberalization may not be beneficial for either party.

2. Market Access: The UK is seeking a significant cut in import duties on goods such
as scotch whiskey, automobiles, lamb meat, chocolates, and certain confectionery
items. India is demanding greater access for its skilled professionals from sectors like
IT and healthcare in the UK market.

3. Visas and Social Security: India is looking for more visas for its professionals and
social security payments by Indian professionals working temporarily in the UK
though they do not qualify for pensions in the country.

4. PLI Schemes: India wants to safeguard its PLI (production-linked incentive)

schemes, which are crucial for its domestic industries. These schemes are aimed at
promoting local manufacturing and are a significant part of India's industrial policy.

5. Electric Vehicles: There is a dispute over customs duty cuts on electric vehicles. India
is seeking a liberal visa regime for its services companies, but the UK is arguing for
balance between mobility and migration concerns. The UK has sought customs duty
concessions on exports of electric vehicles to India under the proposed free trade
agreement.

6. Intellectual Property Rights: Intellectual property rights are being discussed in the
negotiations. There are 26 chapters in the agreement, which include goods, services,
investments, and intellectual property rights. India and the UK are discussing issues
related to intellectual property rights, including 37 changes demanded by the UK's life
sciences and India's intellectual property rights.

7. Bilateral Investment Treaty (BIT): Talks are progressing on the proposed bilateral
investment treaty (BIT) between India and the UK. These investment treaties help in
promoting and protecting investments in each other's country. The main point of
contention in this pact is about the mechanism for the settlement of disputes. India
has proposed to first utilize all local judicial remedies for settlement of disputes before
initiating an international dispute resolution mechanism.
8 Election
The UK and India have paused talks on a long-awaited trade deal until after India's
elections, as major issues on goods, services, and investment remain outstanding
As India heads into an election, the UK and India have deferred trade deal talks until
after the elections, as major issues on goods, services, and investment remain
outstanding. The 14th round of negotiations was concluded ahead of the election
schedule, with the next round expected to commence only after the Lok Sabha polls
have concluded. The UK and India are working towards an ambitious trade deal, but
the teams are not in a position to conclude an agreement, leading to the talks being
put on hold. The next round of negotiations will take place after the Indian elections

Current status
The India-UK free trade agreement is currently in a holding pattern after the 14th
round of negotiations concluded in January 2024 [India Briefing]. Both sides are
aiming for a deal by July 2024, but there are still some issues to be ironed out.

Here's a quick breakdown of the situation:

● The 14th round aimed to resolve outstanding issues like market access for
goods (including Scotch whisky and autos) and easier movement of skilled
workers [India Briefing].
● Progress has been made, but an agreement couldn't be reached before India's
recent elections [Economic Times].
● Talks are expected to resume after a new government is formed

Overall, there's cautious optimism that a deal can be reached by July, but it depends
on how quickly the political situation in India unfolds.
 Assignment 5

Explain India’s relationship with SAARC

Before understanding India's huge relations with (SAARC) will delve into meaning,
origin and objectives of SAARC

Saar is a Regional intergovernmental organization in South Asia which stands for South Asian
Association for Regional Cooperation
The South Asian Association for Regional Cooperation (SAARC) is an intergovernmental
organization established in 1985, with its charter formally approved at the first summit held in
Dhaka, Bangladesh. SAARC is dedicated to economic, technological, social, and cultural
development emphasizing collective self-reliance, with its seven founding members being
Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. Afghanistan joined the
organization in 2007. The organization's headquarters are in Kathmandu, Nepal, and meetings of
heads of state are usually scheduled annually, with meetings of foreign secretaries held twice
annually

SAARC ORIGIN

 The origins of SAARC can be traced back to the late 1970s when Bangladesh initiated
the proposal for the establishment of a regional organization for cooperation in South
Asia, similar to the Association of Southeast Asian Nations (ASEAN). After several years
of informal and semi-formal diplomacy led by Bangladesh, the 'South Asian Association
for Regional Cooperation' (SAARC) was formally launched at the first summit of the
seven South Asian states in Dhaka in December 1985. SAARC is a product of the
evolutionary process of Asian regionalism, which emerged along sub-regional lines
with narrower focus and scope

MOTIVE BEHIND FORMATION OF SAARC

SAARC has made some achievements, such as establishing a Free Trade Area to increase
internal trade and lessen the trade gap of some member countries, signing the South Asian
Free Trade Agreement (SAFTA) to reduce customs duties of all traded goods to zero by the
year 2016, and establishing the South Asia Preferential Trading Agreement (SAPTA) for
promoting trade amongst the member countries.

SAARC has the potential to be a common platform for the member countries to demand more
sustainable alternatives for development, oppose trade tariffs together, or demand better
terms for South Asian labor around the world. The organization reflects the South Asian
identity of the countries, historically and contemporarily, and there is a cultural, linguistic,
religious, and culinary affinity that defines South Asia.
Objectives of SAARC

SAARC's main objectives include

promoting regional cooperation in various areas such as agriculture, education, culture,
sports, health, population, child welfare, environment, meteorology, rural development,
tourism, transport, science and technology, communications, women in development, and the
prevention of drug trafficking and drug abuse. The organization's charter stipulates that
decisions are to be unanimous and that 'bilateral and contentious issues' are to be avoided
1. Promotion of Economic and Regional Integration:
● Trade Facilitation: SAARC aims to promote economic integration among
member states by facilitating trade and investment flows within the region. This
includes reducing tariff and non-tariff barriers, harmonizing customs
procedures, and promoting regional value chains.
● Regional Free Trade Area: SAARC envisions the establishment of a South Asian
Free Trade Area (SAFTA) to promote free trade in goods and services among
member states, leading to increased economic cooperation and growth.
2. Enhancement of Connectivity and Infrastructure:
● Transport Links: SAARC seeks to improve connectivity through the development
of transport infrastructure, including roads, railways, air links, and ports.
Enhanced connectivity is crucial for boosting trade, tourism, and people-to-
people exchanges within the region.
● Energy Cooperation: SAARC promotes cooperation in energy infrastructure and
resources to address energy security challenges and promote sustainable
energy development among member states.
3. Social and Cultural Cooperation:
● Cultural Exchanges: SAARC encourages cultural exchanges, heritage
preservation, and promotion of arts, literature, and cultural diversity among
member states to foster mutual understanding and respect.

4. Promotion of Peace, Stability, and Security:(most important)

● Conflict Resolution: SAARC aims to promote peace, stability, and security in the
region by facilitating dialogue, conflict resolution mechanisms, and confidence-
building measures among member states.
● Counterterrorism and Transnational Crime: SAARC addresses security
challenges such as terrorism, extremism, organized crime, and illicit trafficking
through cooperation on law enforcement, intelligence sharing, and capacity-
building initiatives.
Promotion of People-to-People Contacts:
● Visa Facilitation: SAARC encourages visa facilitation and simplification
procedures to promote tourism, business travel, and cultural exchanges among
member states.
INDIA CURRENT RELATION WITH SAARC AND SAARC COUNTRIES

In my opinion in current scenario India’s relation with search is cold-hearted and cannot be
said good or bad, India’s relations with its SAARC neighbors have, over the decades,
oscillated from very good to stressed barring with Pakistan and Bhutan. With the
former they have generally been very bad and with the latter very good. With the
rest, notably Afghanistan, Maldives, Sri Lanka, Bangladesh and Nepal, they have
seen many ups and downs.

It is evident from Last (saarc) summit that held a decade ago in 2014 The last (SAARC) summit
was held in Kathmandu, Nepal on November The 2014 summit ended on a disappointing
note, as tensions between India and Pakistan and Pakistan's domestic compulsions prevented
the signing of two major agreement, Since then, there hasn't been a successful attempt to
schedule another summit due to lack of consensus between the member-states especially
India and porkistan.The 2016 summit was scheduled to be held in Islamabad, but was canceled
after several countries refused to participate due to a terrorist attack in Uri, Jammu and
Kashmir India’s External Affairs Minister (EAM) Dr S Jaishankar on launched a veiled offensive against
Pakistan. While responding to a question on the (SAARC) summit, the External Affairs minister said that India
cannot have a SAARC meeting until one member (Pakistan) continues to engage in terror acts.

There are many asymmetries between India and other Saarc nation

Additionally, India's relations with these countries have been bedeviled with a host of issues common to
neighbors the world over, such as disputes and differences over land and maritime borders, water sharing,
connectivity, illegal migration, smuggling and drug trafficking, border management, terrorism etc. The close
civilizational connect between elements of the populace in neighboring states and that across the borders in
India, far from being a bridge, has on occasion become a source of friction on account of the near inevitable
Indian interventions on their behalf when they have been ill treated by the governing majority. Cases in point are
intercession by India in Nepal on behalf of the Madhesis, or in Sri Lanka on behalf of the Tamils. India often has little room
to man oeuvre in such matters since what is normally a foreign policy issue also assumes a domestic dimension. India's
relations with its SAARC neighbors have also often taken a hit due to their insensitivity to New Delhi's core interests.
Some have gone so far as to involve themselves in terrorist activities against India. Nearly all have used the
China card against it. This has taken many forms, ranging from according China basing facilities to enthusiastically
welcoming the Belt and Road Initiative (BRI) which, in its CPEC avatar, infringes on India's sovereignty and which is a
thinly veiled exercise to advance China's hegemonic interests in the region and beyond.

India has both advantageous and challenges being a saarc nation member
Some advantages
Potential benefits for India are below.

o A thriving regional market: Deeper economic integration within SAARC can create a large regional market for
Indian goods and services. This could boost Indian exports and the manufacturing sector.
o Attract investment: An integrated South Asian economy could attract more foreign investment into the region,
including into India.
o Improved connectivity: SAARC initiatives to enhance regional connectivity through transport and energy
infrastructure could benefit India's economy.
o Common policies: Harmonizing economic policies in areas like trade, investment and agriculture could benefit
India.
o Job creation: Thriving regional trade can boost labour-intensive manufacturing in India, helping generate more
jobs.
o Attracting FDI: A liberalised investment regime within SAARC can help attract more foreign direct investment
into high-potential sectors in India.
o Technology transfer: Improved cooperation in areas like agriculture, renewable energy and IT can facilitate
technology transfer to India from other members

CHALLENGES

However, these benefits are yet to materialize fully due to challenges like.

o Low intra-regional trade: Trade among SAARC nations is still low at around 5% of India's total trade. Most
SAARC members also share similar export bases.
o Slow implementation: SAARC initiatives have seen slow implementation due to political tensions, bureaucracy
and lack of adequate resources.
o Tensions with Pakistan: Political tensions between India and Pakistan have limited SAARC's effectiveness in
realizing its objectives.
o Reluctance to integrate: Some smaller SAARC nations are reluctant to deepen economic integration, fearing loss
of policy space

Citations:
o [1] http://nihcr.edu.pk/Latest_English_Journal/SAARC_Jamshed_Iqbal.pdf
o [2] https://www.degruyter.com/document/doi/10.56687/9781529205169-005/html?lang=en
o [3] https://byjus.com/free-ias-prep/south-asian-association-for-regional-cooperation-saarc/
o [4] https://globaledge.msu.edu/trade-blocs/saarc/history
o [5] https://www.britannica.com/topic/South-Asian-Association-for-Regional-Co-operation