ABSTRACT
As the number of regional trade agreements (RTAs) has grown, so has the interest in the impact that RTAs tend to have within and outside the region. Perhaps the most significant aspect is the link between RTAs and political stability. In this chapter, we focus on the South Asian region and examine the economic, political and strategic context in which the subcontinental RTAs are embedded. South Asia is a strategically important region with a history of both integration and conflict. While the Mughals consolidated the Indian sub-continent, it remained internally divided. The British colonial rulers unified India administratively and also integrated it economically through the development of elaborate rail, road and canal networks. The post-1947 colonial era saw India divide into two countries. Subsequently Bangladesh broke away from Pakistan in 1971. These subcontinental divisions weakened the integration process considerably and the region has continued to experience long spells of intra and inter-state tensions.
