Geopolitics is increasingly intertwined with the economic destiny of South Asia. Even before the U.S. 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.

Over two centuries, the U.S. has amassed vast economic powers across the globe during and after the two World Wars , and sanctions slowly became an effective tool it used to achieve its foreign policy goals, becoming the global emperor of sanctions.

Operation Sindoor conveyed three messages: First, to Pakistan that it will have to bear the consequences of continuing to support terrorism. Second, to terrorists, that Bharat will inflict the same pain, if not more, than they inflict on Indian citizens. Third, to the world, that Bharat is resolute in responding to terrorism in a “measured, non-escalatory, proportionate, and responsible” manner.

India-China relations, undergoing a thaw since October 2024, have been slow to mend. In this scenario it is worth examining what assistance China can give Pakistan in case of military action by India, post Pahalgam. The state of play on the India-China border will also have a major implication for this.

The traditional power structures of ‘unipolarity’ or ‘bipolarity’ prevalent over the past 80 years are no longer appropriate to describe the current global order, with more countries increasingly supporting the evolving multipolar world. With the old ‘rules-based’ order becoming less relevant, emerging powers like India have an opportunity to draft more equitable rules to match their multipolar intentions.

The world is undergoing profound transformations that are not being driven only by the United States, China or Russia. Small and medium-sized States are carving out a legitimate place for themselves in the emerging new order. This second edition of our annual Emerging Middle Powers Report is a reminder that the signs of the times are showing a new momentum for middle powers.

Japan's growing influence in India’s Northeast and Bay of Bengal region is proving to be a gamechanger, with the potential to transform its economic and geopolitical landscape. With cultural ties and strategic investments, states like Assam and Meghalaya hope to enhance development while fostering a mutually beneficial relationship with Japan. Additionally, the latter could help ensure wider regional stability given the tensions with Bangladesh and Myanmar.

Two important conclaves held in December 2024 - a Politbureau meeting and the Central Economic Work Conference – set the tone for China’s economic focus in 2025. The economy needs a resurgence, given the domestic environment of low spending and the external threat of high tariffs – the outcome of swapping development for security. In 2025, China’s mandarins will try and find a balance between the two.

India and China are the world’s most populous countries, with much in common and much divergence. Reform, discipline, long-term thinking and scale brought China to its present near first-world conditions; India is accommodative with its democracy, cultural diversity and all-round religiosity to achieve development, wealth creation, cultural preservation and self-respect. There’s a great deal that the two Asian giants can learn from each other.

China has just announced a grand stimulus for its economy. An analysis of the outcome of the Third Party Plenum held in July, where many of these measures take birth, shows that despite the optimistic planning, China is readjusting its ambitions for future stability.