India holds a geostrategic position on the Indian subcontinent. Its location is more significant given the sharing borders with all the South Asia neighbouring and Central Asia making it an extended neighbourhood region. However, connectivity has not remained in the regional integration framework of the South and Central Asian regions. No matter how hard the regional leadership had worked on this, the optimal result has not been reached yet given the various geopolitical and geostrategic dynamics.
The Government of India (GOI) has prioritised intra- and inter-regional connectivity highly because it envisioned a lack of connectivity as a challenge to India’s economic and security interests. As far as the South Asian countries are concerned, the Government of India (GOI) has made the Neighbourhood First policy to show that India is serious about connecting with other countries in the region. Although several projects have been initiated with the South and Central Asian countries, there are still problems with implementation, coordination, and execution because of the complicated geopolitics at the regional and multilateral levels.
Importance and Challenges of Connectivity in the Region
Global socioeconomic development has always been influenced by regional connectivity. Spatially connected economic units and sub-regions have historically prospered faster than isolated ones due to their better access to resources and markets. Currently, connectivity includes infrastructure and systems that enable the physical mobility of people, goods, information and technology sharing. Well-connected networks of spatially spread economies have been generating greater growth opportunities for all stakeholders, facilitating balanced and inclusive development in the region.
Transport connectivity is a key enabler in the Sustainable Development Goals (SDGs), which aim to provide safe, affordable, accessible, and sustainable transportation to all by 2030. Goal 11 emphasizes “sustainable human settlements,” and Goal 9 emphasizes transboundary transport infrastructure. The SDGs also recognize the importance of transport energy efficiency in meeting rising global energy demand.
The South and Central Asia subregion’s regional connectivity is of particular importance due to its strategic geographic location and its own developmental requirements. One of the world’s largest concentrations of poverty is located in South Asia. In numerous countries within the sub-region, the internal connectivity of the approx. of 3.7 billion people is fragmented and poorly organized. The sub-region will be unable to leverage its potential as a land bridge connecting Europe to the east and as an economic gateway to and through the Central, South-West, and Southeast Asian countries situated at its borders if its internal connectivity is not improved.
Central and South Asia have historically had strong economic ties, facilitating cultural and religious connections and political alliances. However, due to rapid economic transformation and globalization, these regions are at a pivotal point in international trade. The current trade volume between the two regions is inadequate, trailing behind other regions like Southeast Asia, Latin America, Africa, and the Middle East. Interregional trade between the two regions represents only 0.2% to 4% of the overall trade volume across all destinations, particularly in landlocked nations like Afghanistan from South Asia. The interdependence of Central and South Asian regions relies on the development of transportation links to enhance access to regional and global markets. However, despite the potential for trade and investment, there is a lack of economic integration within these regions.
Gupta, Ayush, and George (2019) argue that the regional land transport corridors must effectively link inland production centres and markets to optimize reach and enhance network strength. The land transport corridors in South Asia possess the capacity to yield significant efficiency improvements and energy conservation, thereby facilitating new avenues for sustainable development. Moreover, due to its advantageous geographical position, the expanded transport corridors connecting South Asia with Central Asia can facilitate the region’s emergence as an axis for Asia-Europe trade, thereby generating substantial revenue.
India and South Asia: Connectivity Corridors
India has initiated the Bangladesh, Bhutan, India, and Nepal (BBIN) Motor Vehicle Agreement. In June 2015, the transport ministers of four South Asian countries (Bangladesh, Bhutan, India, and Nepal) signed the Motor Vehicles Agreement (MVA) in Thimpu, Bhutan. Its goal is to ensure seamless connectivity among the region’s countries while also reducing travel time and costs associated with product transportation. It is regarded as a model of sub-regional cooperation in the area of connectivity, which includes both energy and transportation. However, the National Council (NC), Bhutan’s upper house of parliament, rejected the agreement. The Bhutanese government believes that the BBIN MVA provides limited benefits to Bhutan’s economic development, as the country’s trade is primarily with India, where both countries already allow free movement of vehicles across their borders.
The BCIM Economic Corridor seeks to strengthen sub-regional economic cooperation among Bangladesh, China, India, and Myanmar. According to this agreement, an expressway between India and China will pass through Myanmar and Bangladesh. BCIM’s priorities have changed over time and the included priority agenda such as Trade, Transport, and Energy (TTE). In addition to inland water transportation, port development, and coastal shipping, the BCIM connectivity agenda emphasized multimodal transportation.
The Tribhuvan Rajpath-Kathmandu-Pathlaiya Highway is a pioneering connectivity project between India and Nepal. Construction of the 116-kilometre highway began in 1953 and was completed in 1956 at a cost of INR 564.85 lakh. It was maintained by the Indian Cooperation Mission until August 1965. According to Mahendra Lama, Nepali strategic analysts believe India’s road construction activity is motivated by a desire to reach economically significant areas such as Palung, Daman, and Thankot.
India contributed to the operationalization of the East-West Highway (Mahendra Rajmarg), which is regarded as Nepal’s lifeline. India provided INR 22 crore in 1966 for the eastern section of the East-West Highway, which was completed in 1971. Furthermore, India promised to construct a bridge over the River Kosi near Chhatra within 12 years of the eastern sector’s completion. According to the 1972 agreement, India contributed INR 25.82 crore to the development of the Butwal-Nepalgunj highway stretch. The development of the East-West Highway resulted in the establishment of additional road links between India and Nepal. One major project in this direction is the Mahendranagar-Tanakpur Link Road. In 1996, the two countries agreed to build an all-weather road connecting the Tanakpur Barrage and the East-West Highway in Mahendranagar, Nepal.
India and Central Asia Connectivity
The Chabahar Port, located in southeastern Iran on the Gulf of Oman, is a critical infrastructure project with significant geopolitical, economic, and strategic implications for India and Central Asia via Iran and Afghanistan. In May 2015, India signed a memorandum of understanding (MoU) to develop the Chabahar port. In May 2016, India, Iran, and Afghanistan signed a trilateral agreement to establish the International Transport and Transit Corridor, known as the Chabahar Agreement. In May 2024, India and Iran signed a decade-long agreement that guarantees India’s continued participation in the operation and development of Chabahar Port. This agreement represents India and Iran’s common goal of improving regional connectivity and economic collaboration.
Previously, India’s main route to Afghanistan and Central Asia was via transit lines through Pakistan. Chabahar Port offers an alternative route that bypasses Pakistan. This means that India will not have to rely as heavily on its neighbour for trade with Afghanistan and Central Asian countries. However, the long-term agreement has yet to be finalized due to disagreements over certain parts. The dispute was over where to hold arbitration for disagreements. India supported the concept of a neutral country, but Iran insisted on having its own courts or ones that were friendly to it. At this point, both parties have agreed on a solution that benefits both of them. According to the contract, any conflicts should be resolved by the leaders of both countries communicating and cooperating. This port has a lot of potential between India and Central Asia for their economic engagements.
Conclusion
In the post-Cold War India has shed isolationism and changed its foreign policy. India prioritizes connectivity corridors with South and Central Asia due to their geo-economic significance. Several connectivity projects such as BBIN, BCIM Economic Corridor, and Chabahar Port have been initiated. However, infrastructure delays, multilateral coordination, and geopolitical issues have slowed their functionality. Historical, geographical and geopolitical factors have shaped India-South and Central Asia connectivity projects. India’s success depends on its ability to pragmatically address internal and external issues and promote regional connectivity cooperation. It would remain a major question for connectivity projects for their optimum functionality and utilization given the geopolitical and geostrategic challenges.
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