Regional Cooperation: SAARC and BIMSTEC

How South Asian countries have tried to cooperate through regional organisations, why SAARC stalled, and India's shift toward BIMSTEC.

Regional organisations can help neighbouring countries cooperate on trade, infrastructure and shared problems. South Asia has two main groupings.

SAARC

The South Asian Association for Regional Cooperation, or SAARC, was founded in 1985 by Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. Afghanistan joined in 2007. SAARC launched initiatives on trade, including SAFTA, as well as agriculture, health and disaster management.

However, SAARC has largely stalled. Decisions require consensus, and tensions between India and Pakistan have blocked progress. The 2016 summit, due to be held in Pakistan, was cancelled after India and several other members pulled out, and no summit has been held since.

BIMSTEC

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, or BIMSTEC, founded in 1997, brings together Bangladesh, Bhutan, India, Nepal and Sri Lanka with Myanmar and Thailand. It links South Asia with Southeast Asia around the Bay of Bengal.

India has increasingly emphasised BIMSTEC. It focuses on connectivity, energy, trade, counter-terrorism and disaster management. A BIMSTEC charter was adopted in 2022, giving it a more formal structure.

Why regional cooperation matters

Larger markets for businesses.
Shared infrastructure, such as roads, ports and power grids.
Joint responses to disasters, disease and climate change.
Economic ties that can reduce political tensions.

Challenges

Both organisations face limited funding, slow decision-making and competing priorities. Progress on a BIMSTEC free trade agreement has been slow.

A shared power grid

If countries around the Bay of Bengal connect their electricity grids, a country with surplus hydropower in the rainy season, like Nepal or Bhutan, can sell to a neighbour with high demand. Countries can share reserves and reduce costs. Regional cooperation makes such projects possible where individual deals are harder.

Thinking regional organisations automatically create integration

Organisations provide forums, but real integration depends on political will, infrastructure and removing barriers. SAARC shows that membership alone does not deliver results.

Key takeaways

SAARC, founded in 1985, has largely stalled due to India-Pakistan tensions.
No SAARC summit has been held since the 2016 summit was cancelled.
BIMSTEC, founded in 1997, links South and Southeast Asia around the Bay of Bengal.
Regional cooperation can expand markets and shared infrastructure but needs political will.