Foreign secretary Ranjan Mathai on Monday said India was spearheading an initiative to develop a currency swap agreement among Saarc countries, which would help them protect their currencies during exigencies.
He was speaking at the ?Driving South Asia Economic Integration? conference, organised by CII.
On the Saarc agreement to develop a food security reserve, he said: ?Currently, India has to hold reserves of 3 lakh metric tonne of food, including both wheat and rice, out of the 4.86 lakh metric tonne envisaged in the group as a whole.?
The reserve would be used to provide help to member nations during food emergencies.
He spoke of the need to identify and address the economic challenges and said India needed to address trade imbalances. India, he said, has taken several steps to improve political and economic ties in the region, mentioning the Safta Ministerial Council Meetings, the Saarc Chambers of Commerce and Industry, SAARC Trade Fairs ? all of which work towards the economic and social advancement of the region.
A major initiative in this direction, he said, was the Saarc Development Fund, which focuses on the social, economic and infrastructure development of the region. He also spoke of the steps taken to improve ties with Pakistan and Bangladesh, saying India had accorded Most Favoured Nation (MFN) status to Pakistan and Indian companies such as Airtel and Arvind Mills are investing in Bangladesh.
