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Economic Integration of South Asia

A complete economic integration can offer better standard of living with common trade policy, single currency, common monetary policy, together with a single fiscal policy, including common tax and benefit rates, complete harmonization of all policies, rates, and economic trade rules. Thus a group of countries can act as a single entity in terms of international trade and investment among themselves and with others. Major benefits of economic integration are minimum cost of international trade, development of regional value chain, regional economies of scale, utilization of regional raw materials, international level of specialization, high standard production, skilled human capital development, expansion of employment opportunities, hassle free movement of goods and human among the participating countries. Thus political and security cooperation and common stands in international platforms are the cascade effect of economic integration.