India has reduced the number of items in the sensitive list for South Asian Association for Regional Cooperation, SAARC's non-least developed countries, NLDCs like Pakistan. This move will further expand trade in goods in the region. The Cabinet on Friday approved reduction of 30 per cent or 264 such items for NLDCs that are contained under the South Asia Free Trade Agreement, SAFTA.

An official statement said that this shall reduce India’s sensitive list for Pakistan from 878 to 614 tariff lines. With this decision India has effectively performed its lead role in harmonising the SAFTA framework and ensuring move towards a vibrant economic community and move towards normalisation of trade relations with Pakistan.

The statement further said the peak tariff rates for non-least developed nations will now be reduced to 5 per cent within three years as per agreed SAFTA process of tariff liberalisation. Shifting of items from sensitive list to general category lead to reduction in duties and boost trade.

AIR correspondent reports under the SAFTA, which came into force in July 2006, India's imports are classified under two lists– the MFN list and sensitive list. India's sensitive list for least developed countries, LDC like Bangladesh has just 25 items. And the same for non-LDC like Pakistan contains 878 commodities.