In a major step towards opening its markets, India on Tuesday announced that it will allow zero duty access to least developed countries of South Asia by the year end and reduce the sensitive list in respect of these nations while unilaterally liberalising visas for certain categories.

Inaugurating the 14th SAARC Summit in New Delhi, Prime Minister Manmohan Singh emphasised that peace was a primary requirement for prosperity in South Asia.

He asked member countries to implement in a "meaningful and sincere manner" the commitments and pledges to root out terrorism.

Referring to the flagging off of SAARC car rally moments before the Summit, he made a strong case for inter-connectivity and proposed immediate linking of capitals of all the member countries through direct flights.

"After several years of efforts, the time has come to move SAARC from a declaratory phase to action and implementation," he declared at the Summit where Afghanistan joined as the eighth member of the regional grouping.  India was elected SAARC Chairman on the opening day of the two-day Summit.

Touching upon the ongoing process in South Asia Free Trade Agreement, he said India was ready to accept "asymmetrical" responsibilities by opening its markets to its South Asian neighbours without insisting on reciprocity.

"I am happy to announce that we will allow zero duty access to India before the end of this year to our South Asian neighbours who are least developed countries and further reduce the sensitive list in respect of these countries," Singh said.