Reserve Bank of India said on Wednesday that the landmark SAFTA Treaty would be a win-win situation for the economies in South Asia and pave the way for a strong regional block.
"It is a positive sum game and positive to all the economies of South Asia," RBI Governor Y V Reddy said in New Delhi on the sidelines of the annual general meeting of the Federation of Indian Chambers of Commerce and Industry.
He said very often people think that South Asia was already moving towards strong economic block.
India and other SAARC countries had decided to work towards creation of a South Asian Economic Union and establishment of a regional food bank as part of its plan of action for poverty alleviation.
The South Asian Free Trade Area Framework treaty was signed by Foreign Ministers of India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka and Maldives on Tuesday.
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