Since 1991 the world’s interest in South Asia has been rising continually. On the parallel basis India s ambitions and its commitment to international affairs influenced both foreign and economic policy. This is to observe also with respect to increase in regional cooperation in South Asia.
In the mid-point of the 21st century India will become the most populous nation worldwide. Due to in-depth changes within India s economy which began in the early nineties India enjoys accelerated economic growth which could spill all over the region. This involves changes across the society and growing domestic demand. Thanks to increased openness of the Indian economy the volume of regional trade begins to rise eventually. India attracts more foreign investment and draws investors’ attention to other South Asian countries.
This article also aims at highlighting India s key role in regional political and economic cooperation within SAARC and BIMSTEC. The author also concentrates on new perspectives of Indian foreign policy i.e. the Look-East-Policy and a new approach to Indian Ocean.
Contrary to a common belief that specific Indian political culture may hamper solving regional, mainly boundary, conflicts, and the author argues that India in the decades to come will take advantage of its democratic political system to prove its readiness to assume a more pragmatic stance towards China, Pakistan, Myanmar and Bangladesh. This is critical for India in order to sustain its success.
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