ByGaneshan Wignaraja, Amit Bhandari, Aliasger Bootwalla
Updated on: Aug 10, 2025 11:20 pm IST
This paper is authored by Ganeshan Wignaraja, Amit Bhandari and Alisager Bootwalla, Gateway House, Mumbai.
Geopolitics is increasingly intertwined with the economic destiny of South Asia. Even before the US tariffs were rolled out, growing polycrises had hit the global economy, which has been struggling since the pandemic. South Asia seems a relatively bright spark of regional trade and growth. This paper analyses South Asia’s trade architecture in the backdrop of a sluggish world economy in the 2020s, and makes recommendations for closer regional economic integration.
PREMIUM International Relations
South Asia today is the world’s most populated region and fastest growing, in a global economy experiencing a period of tepid growth and suddenly faced with mounting risks. This economic reality has put the international spotlight on South Asia with some economic historians drawing parallels between the gloomy world economy today and the economic uncertainties and trade protectionism of the 1930s era. This paper critically analyses South Asia’s trade architecture in the sluggish world economy in the 2020s and makes recommendations for closer regional economic integration.
Four issues relating to South Asia’s growth, trade and trade architecture are examined, with a focus on the period since the Covid-19 pandemic and April 2025:
(1) Messy geopolitics, the global and South Asian outlook, and India’s relations with smaller neighbours,
(2) Shifts in China-centric global supply chains to South Asia,
(3) Patterns of regional energy connectivity and cooperation in South Asia, and
(4) The effectiveness of regional institutions for South Asia’s trade and regionalism.
This paper can be accessed here.
This paper is authored by Ganeshan Wignaraja, Amit Bhandari and Aliasger Bootwalla, Gateway House, Mumbai.
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