Reviving SAARC to Deal with China

Context: India’s strategic dealing with China has to begin with South Asia through deeper regional economic integration which will also serve India’s strategic interests.

Challenges in reviving SAARC:

• Divisive majoritarian politics: to reap political dividends, influences foreign policy in undesirable ways.

• There has been increased anti-Pakistan rhetoric and Islamophobia on Indian soil. 
• There is also ‘Bangladeshi migrant’ rhetoric.

• Convoluted Economic vision: Cutting down India’s dependence on imports under Atma Nirbhar Bharat may not promote South Asian economic integration.
• BIMSTEC as an alternative to SAARC: Increasing animosity with Pakistan, India’s political interest in SAARC dipped significantly. However:

• BIMSTEC cannot replace SAARC due to a lack of a common identity and history. 
• BIMSTEC focuses on the Bay of Bengal region making it an inappropriate forum to engage all South Asian nations.

• Hegemonic China:  As a part of its global expansionism, is chipping away at India’s interests in South Asia.

• China’s proximity to Pakistan through CPEC. 
• Nepal is moving closer to China. 
• China is wooing Bangladesh by offering tariff exemption for its products. 
• It has intensified its ties with Sri Lanka through investments. 

Way Forward:

• Reinvigorating SAARC: India’s strategic dealing with China must begin with South Asia.

• India reached out to SAARC leaders when the COVID-19 outbreak began, but more sustained engagement is needed.

• South Asian economic integration: Intra-regional trade in South Asian needs to increase which accounts for 5% of total South Asian trade now.

• Political will: Working with neighbors to slash the tariff and non-tariff barriers to operationalize the SAARC investment treaty.