Peace and Regional Economic Integration: Analysing India’s Centrality in South Asia

This paper explores the intricate relationship between peace and regional economic integration in South Asia, focusing on India's centrality. South Asia, comprising Afghanistan, Bhutan, Bangladesh, India, Nepal, Maldives, Pakistan, and Sri Lanka, exhibits cultural homogeneity and political heterogeneity shaped by historical colonial legacies and post-independence geopolitics. India's geographical and economic dominance significantly influences regional trade; it represents 80% of its GDP and commands a substantial share of intra-regional trade. However, despite multiple bilateral and multilateral trade agreements under the SAARC umbrella, this region remains least economically integrated, driven by complex conflicts and political tensions among member states. The paper argues that while peace and economic cooperation are mutually reinforcing, persistent regional conflicts hinder trade and integration efforts. By examining conflicts, such as territorial disputes and ethnic tensions, the research emphasises the need for a stable political environment as a prerequisite for economic cooperation. The findings suggest that regional conflicts and geopolitical dynamics hamper India's leadership potential and that the success of economic integration initiatives like SAFTA is stifled by unresolved political issues, limiting the ability of South Asian countries to collaborate effectively. To analyse India’s centrality in South Asia, the paper followed the liberal peace theory. It relied on an extensive literature review based on secondary sources to examine the relationship between peace, conflicts, and economic integration.