Meanwhile, measures to increase connectivity among the Saarc nations, agreements to set up a South Asian university and a pilot project for the regional telemedicine network are gathering speed in the run up to the 14th summit of the South Asian Association for Regional Cooperation to be held in New Delhi on April 3 and 4.

"I would support the government if it comes up with packages for our smaller neighbours, since the size of our country and its economy is large enough to accommodate the requirement of these countries," said President of Associated Chambers of Commerce, Venugopal N. Dhoot.

Dhoot, also the owner of Videocon, said "Our economy is expected to reach the size of trillion dollars by March 2008, and we should share the fruits with the smaller members."

According to Dhoot, "The Saarc region accounted for a mere 2.5 percent of India's total foreign trade between April and October 2006."

"India has extended its commitment to review non-tariff barriers and give better access to its market as a part of Saarc," he said.

He said opening up India's market to the smaller economies is not likely to have a major impact on India's economy.

Leading industrialists have also recently suggested that Pakistan is yet to implement the South Asian Free Trade Agreement, and said it would also be important to solve the issue of Islamabad's reluctance to give 'most-favoured-nation' status to India.

Meanwhile, India is likely to place the issue of a comprehensive regional transport system in accordance to an Asian development bank and a Regional Multi-modal Transport Study (RMTS) that would open up a Dhaka-Lahore road corridor, sources said.

With the entrance of Afghanistan into the Saarc fray, India is also hoping that the Dhaka-Lahore corridor can be extended to Kabul, as part of the summit's focus on connectivity.

The RMTS study said South Asia inherits an integrated transport system and they should look to revive it in order to tap the potential of stronger economic integration.

While, the upcoming Saarc leaders summit is likely to adopt a resolution finalising the establishment of a South Asian university.

India will also place a proposal to harmonise and simplify the rules governing the transit issues among Saarc countries such as customs procedures and standardisations of test certifications and banking.

India's cabinet committee has already cleared a proposal to overhaul its 13 integrated trade-posts and set up a land port authority to identify points on land-riverine border for trading with neighbouring countries.

First of the integrated check-posts will be India's Petrapole border with Bangladesh and the Waga border with Pakistan.