In international trade, free trade agreements are getting importance. Since the inception of WTO in 1991, continuous deadlock right from the Doha round, regional and bi-lateral trade agreements have emerged with fruitful results. On the other hand, multi-lateral trade agreements failed to build broader consensus. This is why regional trade agreements are binding neighboring member countries with more powerful force of trade, money and developing economy. The requirement of economic integration in South Asia led to the establishment of South Asian Association for Regional Cooperation [SAARC] in December, 1985. SAARC involves seven countries, namely, India, Bangladesh, Pakistan, Nepal, Bhutan, Sri Lanka and Maldives with its Secretariat in Kathmandu, Nepal. The fundamental goal of SAARC is to accelerate economic and social development through optimum utilization of their human and material resources. SAARC has operationalized South Asian Free Trade Area [SAFTA] since July 1^st, 2006. SAFTA leads to South Asian Economic Union, just like European Union. Regional Economic integration in South Asia is to leverage the participating members to get considerable synergies and act as complementary for their mutual advantage. The SAFTA framework focuses on sustainable regional economic growth and improvement. The challenges before SAFTA are to find ways to use the resources to be derived from the trade generated to create opportunities to improve the entire economy so that the business may become more competitive. This study reveals India’s exports and imports with the other SAARC member countries and SAFTA’s role in the development of Indian economy.

Keywords: International, Regional, Utilization, Synergies, Complementary, Sustainable.