With its history dating back to the first millennium B.C., South Asia has emerged as the fastest-growing economy in the world, with an annual GDP growth of around 6% and inflation and unemployment capped at 7.2% and 7%, respectively. The projections made promise the continuity of this growth trend. Having achieved economic independence, the region is well on its way to attaining political autonomy and influence to redefine the economic and political landscape of the globe.
The geopolitical landscape of South Asia has seen significant shifts over the past few decades, primarily influenced by the dominant roles played by India and China.
Traditionally, India has exerted considerable influence over its neighboring countries, leveraging its geographic size and economic potential. However, China’s growing economic might and strategic interests have seen it rise as a formidable regional presence. Concurrently, several South Asian nations are experiencing economic growth, enabling them to assert their agency and potentially break free from the traditional spheres of influence these two giants exert. This exploration delves into the dynamics of regional hegemony, key factors motivating the change, and the implications for regional stability.
South Asia is recalibrating its foreign and economic priorities and redrawing its geopolitical map. Nations are rebranding themselves as assertive, non-aligned actors willing to navigate great-power rivalries to pursue national interests.
One of the catalysts for this phenomenon was the spontaneous people’s uprising in Sri Lanka, followed by a similar one in Bangladesh. This uprising brought about a dramatic regime change in both countries through the street power of the masses, forcing the rulers to flee. This triggered an awakening in the corridors of power that the voices of the masses matter, and the long-held perception of them being a silent majority with relevance only in vote politics proved wrong.
Bangladesh’s Chief Adviser Muhammad Yunus recently paid a four-day visit to China, where he met President Xi Jinping and signed nine agreements, securing $2.1 billion in financial commitments from Beijing. He described China as an “important” friend and expressed optimism about strengthening bilateral ties. Simultaneously, Bangladesh is re-engaging with Pakistan. An unprecedented warmth has been rekindled between two former brethren. Ease of travel and an earnest desire to do business have opened up.
In a more significant example of regional cooperation, the Dhaka Stock Exchange (DSE), Pakistan Stock Exchange (PSX), and Colombo Stock Exchange (CSE) have signed a tripartite Memorandum of Understanding last month in a “landmark move” to strengthen regional capital market cooperation.
Professor Yunus’s warmth towards Beijing and Islamabad marks a dramatic shift from the past and signals Bangladesh’s determination to defeat the hegemony of foreign powers -- even if that means unsettling the traditional relationship with New Delhi. Understandably, Bangladesh is not abandoning its partnerships with India or the West. But it is hedging -- and prudently so. As global power centres shift and alliances become less predictable, Dhaka intends to chart an independent course.
With a history of being content within its boundaries, Bhutan is opening up to outside work. It is recalibrating itself to tune the country in line with its people’s aspirations in the changing geopolitical dynamics in the region and beyond. In an outreach to the global world, on the sidelines of the World Economic Forum 2025 meet in Davos, Bhutan Prime Minister Tshering Tobgay met with several international leaders. The meetings discussed and explored investment opportunities in Bhutan and cooperation and partnership across diverse fields, including health, education, and wellness.
Bhutan, a landlocked country, is developing a new airport to accommodate 123 flights a day and 1.3 million passengers a year—an ambitious figure for a country that only has around 316,000 tourists annually.
The writer is the former president of the Overseas Investors Chamber of Commerce and Industry.
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