Richness in material and human resources has warranted a constant interaction between countries in South Asia and the outside world. South Asian states have also been aware of their geopolitical advantages and need to integrate into a regional force. Efforts were made earlier1 to create institutional mechanisms for regional integration in order to enable the fostering of a common regional identity and a cooperative growth strategy making optimum use of inter-regional trade and social and political development. A culmination of such an understanding was the creation of the South Asian Association for Regional Cooperation (SAARC).