Via Gopi Krishna Bhamidipati in agsiw.org: South Asia – India, Pakistan, Afghanistan, Bangladesh, Sri Lanka, Nepal, Bhutan, and the Maldives – remains one of the most strategically critical yet least integrated regions in the world, both politically and economically. With one-quarter of the world’s population, abundant natural resources, and large consumer markets, South Asian countries have significant economic potential. However, intraregional trade amounted to just $23 billion in 2025, far below the projected $67 billion threshold and a miniscule fraction of India’s over $130 billion annual bilateral trade with China. South Asia occupies the strategic land bridge between the booming economies of East Asia and the energy-rich Gulf Cooperation Council countries. These regions are connected by the Indian Ocean and separated only by the Arabian Sea, making the subregion a vital transit hub for trade and energy flows. Nevertheless, despite this strategic location, regional trade blocs do not reflect strong trade figures for the subregion.
