The SAARC Regional Railways Agreement will strengthen transport connectivity in the SAARC Region. Strengthened rail and transport connectivity will not only provide stimulus to the economic development in the region as a whole but also promote social and cultural contact and encourage tourism amongst the Member States. The Agreement will also enable low cost, energy efficient and environmentally sustainable transportation in the SAARC region and provide trade and economic links for the land locked countries and semi isolated regions.
The SAARC region is considered one of the least networked regions in terms of physical and soft connectivity leading to high costs and low volumes of trade recognizing which the leaders of the SAARC countries agreed that better transport infrastructure and linkages among the SAARC countries were necessary. A study undertaken by SAARC Secretariat had recommended multilateral agreements permitting free movement of people, goods and services within SAARC region in the Road and Rail sector and this was endorsed by the SAARC countries in the Summit level and Transport Ministers meetings.
The Cabinet also approved the signing and ratifying the SAARC Motor Vehicles Agreement at the SAARC summit. Further, the Cabinet approved the signing of a Bilateral Agreement for the regulation of passenger traffic between India and Nepal on the sidelines of the forthcoming SAARC Summit. The Cabinet has also authorized the Ministry of Road Transport & Highways to sign similar Bilateral Agreements and Protocols with other SAARC member States.
