This research paper attempts to examine the India’s trade prospects with SAARC countries at large while considering the impact of SAFTA (South Asian Free Trade Area) agreement. The study is analytical in nature and calculations are based on secondary data collected over the period of 28 years (1991 - 2019). To analyse the India’s trade structure and intensity of trade relations with SAARC member countries some macroeconomic indicators of intra trade practices such as trend, direction of export and import of India with SAARC countries and rest of world and trade intensity are also addressed in the study. Trade intensity index is used to identify how vigorously India is trading with member countries. The Study reveals that despite of increase in trade between India and SAARC countries; trade intensity among these South Asian countries is below the optimum level showing the scope for further strengthen and enhance their trade relations.

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Keywords: Regional Trade Agreement, SAARC, SAFTA, Trade Intensity, Macroeconomic Indicators.