A slowdown of the Chinese economy, and the shift, particularly by MNCs, from China to other more competitive locations has opened up business opportunities for latecomers to supply chains in the developing world. Evidence suggests that Southeast Asia and some South Asian countries like India, Sri Lanka, Bangladesh, could be beneficiaries of the supply chain shift, particularly in labour-intensive segments.

Building a robust engagement with India on energy can help offset some of the economic and political crises that most of India’s neighbours are facing. Smaller South Asian neighbours will benefit from cheaper electricity and oil, paving the way for greater regional economic cooperation.

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.

Bhutan’s newly elected People’s Democratic Party is inclined to modernize the bilateral ties with India through investment and commercial ties with cities like Mumbai and Bangalore. This is the moment for New Delhi to view Bhutan with a new, non-linear lens, to deepening ties with a valuable neighbhour.