One of the significant developments that has taken place in the economic scenario of the world has been the emergence of regional economic groupings. Regional economic grouping is one of the major instrument of promoting international trade activities among countries. It focuses on creation of larger economic unit from smaller national economies. The main aim is to accelerate the development process and improve the quality of life of the residents of the region by providing them with greater choice both as producers and as consumers. Regional and economic groupings such as the SAARC, **** Union, ASEAN, G-8, G-20, BRIC, etc. are formed to increase economic co-operation among nations in the neighbourhood or those sharing common economic Interests. This is particularly considered essential by developing countries as they all facing competition not only from developed nations but also amongst themselves in the comparatively restricted economic space enjoyed by the developing world. All major familiar economic activities in the region have an impact on overall human development in a common environment.
