Indian Prime Minister Narendra Modi said South Asia's largest economy would fund regional infrastructure, health facilities and even a communications satellite, and promised to free up its markets to exporters in smaller countries in the region.
Modi, who won a landslide election victory in May, has made clear that boosting India's influence in its immediate neighbourhood is a key strategic priority for his Hindu nationalist government.
Critics say the previous Congress party government began to take relationships for granted, allowing economic giant China - which shares a border with four of India's neighbours - to step into the breach.
But the failure of the South Asian Association for Regional Cooperation (Saarc) to make any significant progress during a two-day meeting underscored the scale of the challenge New Delhi faces.
Cross-border trade among the eight SAARC nations - Afghanistan, Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan and Sri Lanka - still accounts for less than five percent of total commerce in the region.
"Indians want to keep South Asia as their exclusive sphere of influence," said Sreeram Chaulia, dean of the Jindal School of International Affairs in Delhi.
"To do that... we need to play the economic game and we need to play the connectivity game better. We have been protectionist, and that is not good," he told AFP, welcoming Modi's pledge to help smaller nations reduce their trade deficits with India.
Leaders signed just one agreement, on energy cooperation, at a summit that was overshadowed by the rivalries between India and Pakistan, leading host country Nepal's Prime Minister Sushil Koirala to say that Saarc had fallen short of expectations.
Nepal, long under the political influence of New Delhi, has benefited hugely from China's bounty over the last decade, getting much-needed new roads and other infrastructure. Even the venue where the leaders met was built with Chinese money.
It is among several Saarc nations including Pakistan and Sri Lanka that reportedly support full membership for China, which currently enjoys observer status in the regional grouping.
India has resisted promoting its regional rival to full membership status, which comes with the power to veto agreements.
Frustrated by the slow pace of progress towards regional cooperation, it has also sought to woo its neighbours outside the Saarc framework.
Modi held separate meetings with all the Saarc leaders except Pakistan's on the summit's sidelines, and agreed a deal to invest in a major hydropower plant in Nepal shortly after arriving.
But China has deeper pockets than India, which also suffers from a reputation for unwanted interference in the domestic affairs of some of its neighbours.
Nepalese newspapers criticised Modi for urging the country's leaders to complete a constitution-drafting process that has dragged on for years shortly after he landed.
"While his advice is correct, the place and context were wrong," the Republica daily said in an editorial, accusing the Indian leader of violating "diplomatic decorum".
Analyst Tanvi Madan of the Washington-based Brookings Institution said it was natural for the smaller SAARC states to cozy up to China.
"Indian policymakers and analysts objecting loudly to these links is futile and, arguably, counterproductive," she wrote in a briefing paper ahead of the summit.
"An effective Indian approach requires presenting a viable alternative. It means convincing Saarc countries that it wants to take them along on the path to economic prosperity."
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@Bewildered: India has not betrayed Russia. Putin will address Joint House of Indian Parliament when he visits Delhi this month. This honour was last given to Obama in 2010.
@Bewildered: On whose side does Pakistan stand on the Ukraine issue? One day they may have to make the choice.
@ahmer: Worry about Pakistan, it already broke.
@abreez:
You have screwed up knowledge of poverty figures.
It is true that India has the highest number of people who live on less than $2/day. But your figures are wrong.
You are quoting 40million (in reality you meant to say 400million). 400million under PPP $1.25 was a 2005 figure (almost a decade back).
By 2012, India's poor (folks living on less than $1.25/day PPP) reduced to 269.3 million. This compares fairly well with the poverty in China - 157million living on $1.25/day PPP.
Don't think China is a developed or rich country. China too has rapid inequality with its top 3-5% owning majority of the wealth. 902million in china live on less than $5/day.
And for the rest of your post. You are entitled to wet dreams.
@Bewildered: Do not forget, in Ukraine crisis, India stood with Russia. Indian priorities are clear. Russia is an ally.
@Alok:
"Refer to the latest Fragile States Index 2014 report where Pakistan is placed at 10th position against India at 81st."
And Ukraine is listed at 113, and UK at 161. What a joke this index is. Also, USSR was much much more mightier and stable in every respect than what India is at present when it shattered into pieces with the active help of Pakistan less than 30 years ago. Then India chose to betray her benefactor and long time cold war ally by abandoning Russians despite the friendship and mutual defense agreements, as for Indians friendship is a one way traffic that runs towards New Delhi only.
@Siraj Ahmed: good thoughts and analysis. Perhaps not like by your country
@goggi (Lahore): well said. Why don't you give advice to modi on television interview, so that he improves.
@ahmer: Do not worry about the integrity of India. Refer to the latest Fragile States Index 2014 report where Pakistan is placed at 10th position against India at 81st. In fact, India is the most stable country in South Asia and also more stable than countries like China and Thailand. We would believe in the report of the independent UN think tank rather than unsubstantiated claims of yours.
@ahmer: Says the citizen of a nation which broke in half just less than 30 years of it's independence ?
@gulshan:
"Seeing pak attitude, next time rest of SAARC would go ahead with or without Pak."
Please do it already. Who stopped India this time? Pakistan will not be part of any scheme which is not beneficial to us, or benefits only India at our cost. Neither this time, nor the next time. Not ever. If India can do, then Pakistan can also sign mutually beneficial bilateral/multilateral agreements with other SAARC countries. In fact, we already have a few in place.
@Sunil: if you remain as one country
China is economic superpower , but china is not liberal and democratic . It runs its policies by central decrees and no concensus. People cant dare to differ with central power. Hence countries like diverse India with liberal thought process shall be slow in implementing economic policies with diverse political consensus. These are the pitfalls of democracy wherein people progress at slower pace but free of central decrees and single political process. It is not to devalue chinese central policies that could be anti liberal but are effective for their economic progress.We shall have to wait and watch how far the teeming billions are prepared to part with their individual aspirations. But Pakistan Continues to toy with democracy and its moorings still being loose hasn't really achieved a narrative or ideology that could gel with democratic and secular norms of present thinking world and that is a great impediment for well being of nation. one of the comments mentions Pakistan was able to thwart SAARC read Indian push for mutually benefiting agreements. This is very sad on the part of pakistan to behave irrationally , a sad irritant ,and then coming round to accept the agreement. Seeing pak attitude, next time rest of SAARC would go ahead with or without Pak. We cant blame pakistan because since its birth it considered itself more a part of middle east rather than south Asia. So it has no love lost by going against the grain.
@Bewildered: In case you didnt notice, both Social Media and tv channels have reported popularity of Modi in Nepal. Relations with Sri Lanka are also on upswing as Modi is not blackmailed by Tamil Parties and Indian prisoners setenced by Lankan courts got released recently. With Regards to India investing in neighboring countries, that is what a good neighbor does to improve relations and ensure mutual peace. While You exported terrorism and civil war in Afghanistan; Hekmetyar, Taliban, and now Haqqanis, we spent in infra development and educating/training Afghans. Same will be the case with Nepal, and Bangladesh. Everyone knows Chinese extract their pound of flesh, no one's more money minded than them. You should know well, they are looting resources in Gilgit Baltistan and protesting locals have been threatened to silence. On the other side, we only want to ensure our neighbors dont work against us. While China wants to use these countries against India.
"India pledged a slew of regional investments at a South Asian summit this week, seeking to counter China’s growing economic inroads into its backyard..."
"Even the venue where the leaders met was built with Chinese money."
LOL. Two very interesting pieces of information in this single news. Only a few weeks ago, China also pledged to invest US$ 25 billion in India's infrastructure and railway projects, and then the Indian commentators here bragged about it as a great success of Modi's superlative leadership. Now Indians and their charismatic leader both are tormented by the Chinese investment in similar projects in other countries, and yearn to counter Chinese benevolence in the region which they have self-assumed is theirs. What kind of psychological complex and retarted mentality Indians have?
China is world's largest factory site. This country produces everything, from A to Z!
India lacks the basic what China possess i.e. "The Pragmatic Thinking!"
In order to meet up with China in 2050, India needs to speed up its growth rate to 10% plus for 30 years on consistent basis considering its increase in population remains constant! That is a sure uphill task which cannot be achieved if Indians keep on dragging with Pakistan. In any case, God Forbid our suicide based nuclear doctrine comes into play then this gap will increase many, many folds. Pakistan will be a deserted place anyhow, but still it will be the Indians who suffer more in the longer run. Lets just hope sense and sanity prevail in South Asia where a nearly 1.5billion people live
As China's growth comes down due to their ageing population, India, the fastest growing economy of the world currently, will overtake China after about a decade. Its but natural for them to vie for influence all over the world. Unlike China's communist economy, India has huge world-class corporates that will drive the growth. Its like USA and USSR all over again. We all read the history. That is why during this SAARC summit, India went ahead and signed agreements with all SAARC nations except Pakistan. Consequently, Pakistan got Isolated.
India wanted to be the 'Chaudhry' of the South Asian region - I hope they realise that even a country like Pakistan is enough to shatter their 'super power' drerams. You have to change your attitutde, un called for chest thuming and jingoism isn't going to get you there - SAARC has truely shown India what their status in the SA really is; forget about the world over! So please come down from your high horses. Come to your senses please for the sake of this region and start behaving rationally please.
Thanks,
@abreez: Did you use google translate? Sometimes they mess up the logic, and your comment seems to lack it completely. Otherwise a rather interesting example of dystopian flash fiction.
@abreez: You can say what you like, Indians will not remain stuck in this position and we will march on. Think and say what you like, we do not care. In the end Pakistan was forced to move on at the meeting. Your country can not match us in any way what so ever, we will be the 3rd biggest economy in the world and by 2050 the 1st, there is no doubt about it. India is a great country and we are proud of our country, no matter what.
China is world’s 2nd biggest economy, population 1,357,380,000, GDP $16.149 trillion, like any other big economy need a check of inflation. Here come India, world’s biggest poverty, 40,000,000 living with $37 per month and yet hunger for more. As Hazrat Abbas said, “two sorts of people never enough, one who thirst for knowledge the other who thirst for riches.” To satisfy lust of its 3% for riches, India need relationship with different countries, even if it’s China. China need a constent check on its inflation, here come China-India relationship. America want India’s partnership in new cold war in South China Sea, Indian know the importance of that cold war, therefore India will happily accept the title of ‘artifical elephant’ that compel Indian elite ‘more expenditures on artifical elephant’ so that it look real elephant. Pakistan will benefit from this clod war ultimately. Now Pakistan cannot claim its borders of 1236, no one accept that, not even Chinese but after a very difficult time in South China Sea, Chinese will happily let Pakistan to claim these areas. As laser weapon developing fast in near future when Super Computers with the help of laser weapons and Satellites will make it impossible for any country of the world to use WMD then one will be in a position to claim his inheritance. For the time being Chinese need other routes than Sea routes, China’s link with the world by road. That thing make Gwader very important, as Gwader will prove for Pakistani economy ‘Suez canal’ and if Pakistan plays it cards well then may be PAF will have F-35 or F-22 in its fleet. And when Gwader will be fully operational then Pakistan will face ‘inflation’ problem then we will create a new economy. Trade cities on Pak-India border, so that people of Pakistan get rid from inflation. If every day 1,000,000 will come to these cities then who know about economics know the impact on Pakistan’s economy. Therefore it is in the larger interest of Pakistan if India will remain biggest poverty of the world.
....well done America.