SAARC and India

1. Introduction

The South Asian Association for Regional Cooperation (SAARC) is the principal regional organization of South Asia, established on 8 December 1985 to promote regional cooperation, economic integration, and the socio-economic development of its member states. Comprising eight South Asian countries, SAARC seeks to strengthen collaboration in areas such as trade, connectivity, agriculture, education, health, culture, science and technology, and disaster management, with the objective of improving the welfare and quality of life of the people of the region. SAARC and India are closely connected through India’s geographical, economic and strategic position in South Asia.

For India, the SAARC and India Relations have been an important part of India’s regional diplomacy, with SAARC serving as a platform for promoting regional peace, stability, and development under its Neighbourhood First Policy. The SAARC Significance for India lies in its potential to strengthen regional cooperation and connectivity. However, persistent political tensions, particularly cross-border terrorism and strained India-Pakistan relations, have significantly undermined the effectiveness of SAARC. Consequently, while India continues to support regional cooperation in South Asia, it has increasingly shifted its focus towards more functional and result-oriented regional groupings such as BIMSTEC.

2. Evolution of SAARC

• 1985 – Establishment: SAARC was established on 8 December 1985 at the First SAARC Summit in Dhaka, Bangladesh, with seven founding members—Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. The grouping was created to promote regional cooperation and accelerate socio-economic development in South Asia. SAARC and India have therefore been part of the organisation since its foundation.
• 1993 – SAPTA: Member countries signed the SAARC Preferential Trading Arrangement (SAPTA) to encourage trade liberalisation through preferential tariff concessions and lay the foundation for greater regional economic integration.
• 2004 – SAFTA: The South Asian Free Trade Agreement (SAFTA) was signed during the 12th SAARC Summit (Islamabad) to establish a free trade area and boost intra-regional trade among member countries.
• 2007 – Expansion: Afghanistan joined SAARC as its eighth member, expanding the organisation’s geographical and strategic significance in South Asia.
• 2014–Present: The 18th SAARC Summit was held in Kathmandu (2014). The proposed 19th SAARC Summit, scheduled to be held in Islamabad in 2016, was postponed following the Uri terrorist attack, and no summit has been held since. As a result, SAARC has witnessed a prolonged period of stagnation, with regional cooperation increasingly shifting towards alternative platforms such as BIMSTEC.

3. Significance of SAARC for India

Platform for Regional Cooperation

• SAARC provides India with an institutional platform to strengthen political, economic and developmental cooperation with its South Asian neighbours. The SAARC Significance for India is particularly important for strengthening India’s engagement with neighbouring countries.
• It supports India’s Neighbourhood First Policy by promoting regional peace, stability and mutual trust. India and SAARC Relations have therefore remained relevant to India’s broader regional diplomatic objectives.

Economic and Connectivity Cooperation

• SAARC promotes regional trade through SAFTA and encourages cooperation in transport, energy and people-to-people connectivity.
• Enhanced regional connectivity contributes to economic growth and development, particularly in India’s border states.

Addressing Common Regional Challenges

• SAARC facilitates cooperation in combating terrorism, poverty, climate change, natural disasters and public health emergencies. SAARC and India UPSC preparation therefore requires understanding its role in addressing common regional challenges.
• India’s proposal for the SAARC COVID-19 Emergency Fund (2020) demonstrated the importance of regional cooperation during crises.

Strengthening India’s Regional Leadership

• As the largest economy and founding member, India plays a leading role in promoting regional development and capacity building through initiatives such as the South Asian University and the SAARC Disaster Management Centre. SAARC and India Relations are therefore important for understanding India’s regional leadership in South Asia.

4. Major Challenges Facing SAARC and India

India–Pakistan Rivalry and Cross-Border Terrorism

• India-Pakistan tensions remain the biggest obstacle to the effective functioning of SAARC, as bilateral political and security disputes have repeatedly overshadowed the organisation’s regional agenda. SAARC Challenges for India are therefore closely linked to the broader security environment in South Asia.
• Despite the SAARC Charter prohibiting the discussion of bilateral disputes, strained relations between the two countries have frequently disrupted regional cooperation and delayed implementation of key initiatives.
• The issue of cross-border terrorism has further weakened SAARC. India has consistently maintained that terrorism and meaningful regional cooperation cannot coexist, making it difficult to revive the organisation without addressing security concerns.
• Following the Uri terrorist attack (2016), India decided not to participate in the 19th SAARC Summit scheduled in Islamabad. Several other member countries also withdrew, leading to the postponement of the Summit, which has not been held since.
• The prolonged political deadlock has prevented SAARC from effectively addressing regional challenges such as trade, connectivity, energy cooperation and economic integration, thereby diminishing its relevance in South Asia.

Consensus-Based Decision Making

• SAARC functions on the principle of consensus, meaning that every major decision requires the unanimous approval of all member states.
• While this principle ensures sovereign equality among members, it has often resulted in policy paralysis, as even a single country can block important proposals and delay regional initiatives.
• The consensus-based approach has slowed the implementation of agreements related to trade, connectivity, security, energy and institutional reforms, reducing the organisation’s overall effectiveness.
• Unlike organisations such as ASEAN, which have adopted more flexible approaches in certain areas, SAARC’s rigid consensus mechanism has limited its ability to respond quickly to emerging regional challenges.
• The inability to take timely collective decisions has significantly weakened SAARC’s credibility and has encouraged member countries, including India, to pursue sub-regional and alternative regional cooperation mechanisms.

Weak Regional Economic Integration

• Despite the operationalisation of the South Asian Free Trade Agreement (SAFTA) in 2006, SAARC has made limited progress in creating an integrated regional market due to persistent tariff and non-tariff barriers.
• Intra-SAARC trade accounts for only about 5% of the region’s total global trade, which is significantly lower than regional blocs such as ASEAN (around 22–25%) and the European Union (over 60%), highlighting the low level of economic integration.
• Poor cross-border connectivity, inadequate transport infrastructure, cumbersome customs procedures and restrictive trade policies continue to impede the free movement of goods, services and investments within South Asia.
• The limited success of regional initiatives has prevented South Asia from fully exploiting its geographical proximity, complementary economies and demographic advantages, thereby restricting economic growth and regional value chain integration.
• As a result, India has increasingly focused on alternative frameworks such as BIMSTEC, BBIN and bilateral agreements to promote regional trade and connectivity.

Institutional and Implementation Deficit

• Compared to successful regional organisations such as ASEAN and the European Union, SAARC has a weak institutional framework, with a small Secretariat and limited financial and administrative resources.
• The organisation lacks effective monitoring, enforcement and dispute resolution mechanisms, resulting in poor implementation of summit declarations and regional agreements.
• Many important initiatives in areas such as trade, transport connectivity, energy cooperation and regional infrastructure have witnessed slow progress due to bureaucratic delays and lack of political commitment.
• The prolonged absence of SAARC Summits since 2014 has further weakened institutional coordination and reduced the organisation’s ability to formulate collective responses to emerging regional challenges.
• Strengthening institutional capacity and ensuring effective implementation remain essential for restoring SAARC’s credibility and relevance.

China’s Growing Influence in South Asia

• Although China is not a member of SAARC and holds only observer status, its expanding economic and strategic footprint in South Asia has significantly influenced the regional geopolitical landscape.
• Through the Belt and Road Initiative (BRI), China has invested heavily in infrastructure projects in countries such as Pakistan (CPEC), Sri Lanka (Hambantota Port), Nepal, Bangladesh and the Maldives, increasing its strategic influence in India’s neighbourhood.
• China’s growing engagement with South Asian countries has intensified strategic competition in the region, making it more difficult for India to build regional consensus and maintain its traditional leadership role.
• Some SAARC member states increasingly pursue China-centric economic partnerships, reducing the effectiveness of SAARC as the primary platform for regional cooperation.
• These developments have encouraged India to strengthen alternative regional initiatives such as BIMSTEC, BBIN, and the Indo-Pacific framework to safeguard its strategic and economic interests.

Shift in India’s Regional Priorities

• The prolonged stagnation of SAARC has prompted India to adopt a multi-layered regional cooperation strategy, giving greater priority to BIMSTEC, BBIN, IORA, the Indo-Pacific, and the QUAD.
• Unlike SAARC, these platforms are relatively free from political deadlock and have made greater progress in areas such as connectivity, maritime security, trade, disaster management and economic cooperation.
• India’s growing emphasis on the Bay of Bengal and the Indo-Pacific reflects its broader strategic objective of linking South Asia with Southeast Asia while promoting regional stability and economic integration.
• Nevertheless, India has not abandoned SAARC. It continues to support regional cooperation in South Asia but maintains that an environment free from cross-border terrorism is essential for the meaningful revival and effective functioning of the organisation.
• Consequently, India’s current approach is to pursue issue-based and result-oriented regional cooperation, while keeping the option of reviving SAARC open when favourable political conditions emerge.

5. Present Status of SAARC and the Way Ahead

Present Status

• The 18th SAARC Summit was held in Kathmandu, Nepal, in 2014. The proposed 19th SAARC Summit, scheduled in Islamabad (2016), was postponed following the Uri terrorist attack, and no summit has been convened since.
• Although SAARC is often described as being “on pause”, it has not been dissolved. The SAARC Secretariat in Kathmandu and several specialised institutions continue to function, albeit with limited effectiveness.
• India has consistently maintained that terrorism and regional cooperation cannot go together, making the elimination of cross-border terrorism a prerequisite for meaningful revival of the organisation. SAARC and India UPSC preparation should therefore focus on this continuing challenge and India’s position on the organisation.

Way Ahead

• Create a conducive political environment: Revival of SAARC requires improved political trust among member states and a firm commitment to combating cross-border terrorism.
• Strengthen institutional capacity: Enhance the financial and administrative capabilities of the SAARC Secretariat and establish effective monitoring and implementation mechanisms.
• Revitalise economic integration: Accelerate the implementation of SAFTA, reduce tariff and non-tariff barriers, and improve regional connectivity to boost intra-regional trade.
• Promote functional cooperation: Prioritise non-controversial sectors such as health, climate change, disaster management, education, digital connectivity and public health, where regional cooperation can continue despite political differences.
• Adopt a complementary regional approach: India should continue strengthening BIMSTEC, BBIN and other sub-regional initiatives while remaining open to reviving SAARC when favourable conditions emerge. This would ensure that regional cooperation in South Asia continues without being held hostage to bilateral disputes. SAARC Challenges for India can therefore be addressed through a balanced approach combining regional cooperation with alternative sub-regional platforms.

6. Conclusion

SAARC remains the only regional organisation representing all countries of South Asia, with immense potential to promote regional peace, economic integration and sustainable development. SAARC and India remain closely linked because India is a founding member and the largest country in the region. However, persistent political tensions, particularly India–Pakistan rivalry and cross-border terrorism, have severely constrained its effectiveness. While India has increasingly focused on alternative regional platforms such as BIMSTEC and BBIN, it continues to support the idea of regional cooperation in South Asia. A revitalised SAARC, supported by political trust, stronger institutions and functional cooperation, can still contribute significantly to regional stability and shared prosperity. India and SAARC Relations therefore remain relevant for understanding India’s neighbourhood diplomacy and regional cooperation.

BPSC Mains Practice Questions

1. Discuss the significance of SAARC for India. Why has the organisation failed to achieve its objectives despite its vast regional potential?

2. India is increasingly prioritising BIMSTEC over SAARC in its regional diplomacy. Critically examine the reasons for this shift.

Learn More from the Ministry of External Affairs, Government of India

Readers interested in SAARC and India, SAARC and India Relations, India’s role in SAARC, regional cooperation in South Asia, SAARC summits, regional connectivity and India’s neighbourhood diplomacy can visit the official website of the Ministry of External Affairs (MEA), Government of India. The MEA provides authentic information on India’s engagement with SAARC, major diplomatic initiatives, regional cooperation and India’s relations with South Asian countries.