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Synopsis Information Technology is no longer seen as a choice, but as an essential strategy for an organization to adopt to improve productivity and enhance its competitiveness in the global economy. However, the task of strategizing information Technology may become more complex and difficult due to the rapid pace of its development. Coupled with even greater emphasis on the Internet and emerging applications from Internet technology in the 21st Century, there is need to carefully drive this information as a knowledge-based resource to exploit its full potential. There has been a remarkable mutual co-operation amongst SAARC countries and their socio-economic development has been rapidly rising due to wider diffusion of Information Technology. Information Technology has been used in all sectors of economy such as agriculture, industry, marketing, banking, financial institutions, education medical and health etc. in this study, an attempt has been made to examine the impact of Information Technology for overall development of SAARC economies and also to analyze the factors responsible for strengthening Information Technology and socio econ0mic relationship among the SAARC countries.