In recent years, South Asia has received growing attention as a region that is integrating successfully into the world economy. South Asia has successfully converted preferential trading agreement (SAPTA) into a free trade agreement (SAFTA) in July 2006. However, intra-subregional transit trade volume is still miniscule in eastern South Asia (Bangladesh, Bhutan, India and Nepal), compared to its extra-subregional transit trade. About 2 percent of transit trade of eastern South Asia is conducted within the subregion, whereas the rest 98 percent is extra- subregional.