Despite immense potential, South Asia’s growth has been held back by political mistrust & rivalries; now is the time to cooperate to shape a common destiny
South Asia, the region home to one fourth of humanity, is one of the least developed region in the world. It is not because it has scarce resources or lacks human effort, it is because of the nations of South Asia are often working at cross purpose. As they share the same history, the colonial past and same cultural ethos, they have often found reasons to be suspicious of each other. They have been united as well divided by their common history. Various divisions, partitions and bloody wars have left scars on the land of South Asia. These countries carry a heavy burden of the past which has fogged its future. This has often been the reason for the sluggish growth and impoverished existence as conflict and not cooperation has been the norm here. For decades, South Asia has been described as a region of missed opportunities. Despite shared history, culture, and geography, the nations of India, Pakistan, Bangladesh, Sri Lanka, and Nepal continue to lag behind their South-East Asian counterparts in trade integration, economic cooperation, and policy coordination. Now is the time to change this paradigm and move forward to find a common destiny of the people. It is high time to leave behind the history and move forward as the geopolitics is becoming more unpredictable and skewed.
The recent collective call by leading economists from these five nations for urgent reforms and regional collaboration is, therefore, both timely and essential. The economists’ joint statement underscores an uncomfortable truth: while the world economy is slowing and global trade patterns are shifting, South Asia remains dangerously fragmented. Tariffs, protectionism, and the ripple effects of great-power politics have exposed the region’s vulnerability like never before. South Asian nations rather than working in silos must recognise that their strength lies in unity. The success stories of South-East Asia offer a lesson. Through ASEAN this region has fostered strong intra-regional trade and enhanced their collective bargaining power in global forums.
In contrast, South Asia’s only regional body, the South Asian Association for Regional Cooperation (SAARC), has languished for years — stalled by political mistrust, border disputes, and chronic underutilisation. SAARC, once envisioned as a platform for economic synergy, has become synonymous with inertia. Yet, reforming and reinvigorating SAARC may well be the best path forward. A reimagined SAARC could focus on pragmatic, non-political cooperation — such as harmonising tariff structures, improving trade logistics, investing in cross-border infrastructure, and fostering digital and energy connectivity.
These measures would not only deepen regional trade but also integrate South Asia into global value chains, boosting competitiveness and resilience. Economic pragmatism, as the economists rightly point out, is the need of the hour in a geopolitically tense world.
A revitalised SAARC framework, driven by economic pragmatism rather than political posturing, can transform the region from a collection of isolated markets into a cohesive economic powerhouse.
