New Delhi: Asserting it was incumbent on India to take a more liberal approach due to the size of its economy, the Confederation of Indian Industry (CII) has asked the Government to unilaterally allow duty-free access to products from the SAARC (South Asian Association for Regional Co-operation) countries besides allowing investment from South Asian nations to Indian stock exchanges.

"India, being the largest economy, should take the lead. It will be a good beginning if India makes an unilateral move and allows duty-free access of products from the rest of the SAARC countries," a CII report said today (Jan 5, 2004).

Stressing on the need for intra-regional treaty on investment promotion, the country's apex industry chamber said "this will go a long way in building confidence which is needed for promotion of intra-regional investment".

"This may also make South Asia an attractive place for global FDI (foreign direct investment)," it added.

"Since India has well-developed capital market, the Government of India may take a lead in the direction of region-wide co-operation for healthy development of this market."

"It will be a good gesture on the part of India to allow potential investors from South Asian countries to invest in Indian stock exchanges," the report said.

It also asked the Government to develop the stock exchanges of the small economies and also help them set up efficient regulatory mechanisms.

Wholesale-trading-cum-distribution centres within the SAARC region would also spur economic growth in the subcontinent, it said.