With concerns over Chinese strategic relations in South Asia, India should reach out to its neighbours, have better terms of trade with them. At a time when it is increasingly worried about growing Chinese economic and strategic relationships in the region, India is missing a “costless” trick. As the numbers show, it can trade a lot more within the region, both in terms of exports and imports. This piece focuses more on India’s imports from South Asia, because larger and more

China has established itself as a major trade partner of South Asia. This mainly reflects the region’s strategic importance for China’s Belt and Road Initiative. Despite geographical proximity and the existence of bilateral and multilateral free trade agreements (FTAs), South Asia is one of the least economically integrated regions in the world. Owing to protectionist policies, high logistics cost, lack of political will and a broader trust deficit, intra-regional trade in So