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Source: The post is based on the article “C Raja Mohan writes: South Asia, now open to business” published in The Indian express on 2nd August 2023.
Syllabus: GS2- India and its neighborhood-relations.
News: In this article author talks about India’s growing economy and its potential positive effect on South Asia. They discuss how regional integration, influenced by economic reforms, can overcome political disputes. Despite challenges, there are new factors accelerating this process, including India’s increasing economic ties with neighbors, economic openness in the region, and support from Western countries. Ultimately, the author suggests India’s economic growth can benefit all South Asian countries.
How India’s growing economy and its potential positive effect on South Asia?
India is emerging as the third-largest economy and a major tech hub.
Effects on South Asia
Trade Increase:
Intra-regional trade grew from 2% in 1990 to 6% now.
India’s exports: $16 billion to Bangladesh, $6 billion to Sri Lanka, and $8.5 billion to Nepal in 2022.
Regional Integration:
Leaders from Nepal and Sri Lanka are showing interest in deeper economic ties with India.
Cross-border projects like rail, road, and energy are gaining momentum.
Great Power Influence:
The US and allies are focusing on India as a counter to China, helping promote India’s ties with its neighbors.
Japan is promoting connectivity between India and Bangladesh.
How South Asian regional integration can overcome political disputes?
Trade as a Bridge:
Intra-regional trade in South Asia grew from 2% in 1990 to 6% currently.
As trade benefits economies, it encourages nations to resolve political issues.
Leadership Engagements:
Visits by Nepal’s PM and Sri Lanka’s President to India have led to stronger economic commitments.
Such direct discussions can pave the way for resolution of disputes.
Economic Alliances:
Countries like Nepal and Sri Lanka show increased interest in economic ties with India.
Economic interests can overshadow past political differences.
External Influence:
Japan’s effort in promoting India-Bangladesh connectivity is an example of foreign nations pushing for regional unity.
The US’s $500 million grant to Nepal for energy and road connectivity emphasizes regional collaboration.
Alternative Cooperation Routes:
Instead of relying solely on SAARC, nations are pursuing bilateral and sub-regional cooperations, bypassing traditional hindrances.
