South Asia, now open to business

South Asia, now open to business

News: An editorial covered by C Raja Mohan mentions how South Asia has evolved over the years and is now a region which is open to increasing business opportunities.

Background:
• India’s growing economic and global stature has contributed to the increase in opportunities of business.

How is India changing the dynamics?
• India is emerging as the third-largest economy and a major tech hub.
• He argues that the region’s new economic openness, Delhi’s vigorous neighborhood policies, and Western support for an India-centered regionalism in South Asia could transform the Subcontinent’s economic landscape.
• 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.
• The recent visits to Delhi by Nepal’s Prime Minister Pushpa Kamal Dahal and Sri Lankan President Ranil Wickremesinghe, underline the shifting currents in South Asian regionalism.
• Major initiatives for cross-border connectivity now complement India’s growing trade volumes with its neighbor.
• The US and allies are focusing on India as a counter to China, helping promote India’s ties with its neighbors and Japan is also promoting connectivity between India and Bangladesh.

Way Forward
• Economic interests and economic growth will encourage nations to resolve political issues.
• Instead of relying solely on SAARC, nations are pursuing bilateral and sub-regional cooperations.