SAARC

Shift From SAARC to BIMSTEC

• Kathmandu SAARC summit connectivity agreement forwarded by india vetoed by pak 
• Uri attack 2016 SAARC summit boycott by india and other members 
• Invites to BIMSTEC leaders in Brics outreach summit Goa 2016
• 2017 BIMSTEC summit PM called it platform for India's act east policy 
• 2018 BIMSTEC summit resolution against terrorism and state supporting it 
• Removal of MFN status to Pak 
• Couldn't carry all members together in South Asia satellite project 
• Move away from pak after pathankot attack 
• Pulwama attack 

Reasons for shift

• Stagnation of SAARC with limited growrh aspects for India's aspirations 
• At loggerheads with pakistan 
• BIMSTEC better for Neighbourhood first and act east policy 
• BIMSTEC combined GDP 2.7 trillion $, all countries growing consistently, have high resources 
• Better connectivity with Bimstec nations 
• Bimstec better to counter for chinas growth & Expansionism

Relevance of SAARC

• Reflects south asian identity 
• Shared history geography linguistic and cultural relations 
• Close ties in socio political set with saarc nations 
• Bimstec not well institutionalized like saarc
• Saarc has interaction mechanism like South Asian University, South Asia Satellite 
• India’s strategic dealing with China has to begin with South Asia.

South Asia is one of the least integrated regions in the world with intra-regional trade teetering at barely 5% of total South Asian trade, compared to 25% of intra-regional trade in the ASEAN region.Saarc and Bimstec focus on overlapping geographical regions but they cannot be used instead of one another. Both are relevant in their respective sphere of influence and serve different purposes for India's foreign relations.