The idea of India is enshrined in Preamble to the constitution, rooted in our independence movement. It is synthesis of Democracy, Secularism, Socialism and Liberalism aimed at achieving economic justice for its population. The country should be able to provide economic justice to its population upholding democratic and liberal values.

In 1970, India’s nominal GDP and per capita income were $ 62.4 billion and $ 114 respectively and increased to $ 4.15 trillion and $ 2813 respectively in 2026. Apparently, it looks substantial increase in per capita income from year 1970 to 2026 but considering inflation adjusted purchasing power it has increased from Rs. 1.6 lakhs to Rs. 2.35 lakhs. It is not substantial increase in per capita income to lift population out of poverty. Wealth generation has not percolated to poor population and wealthy have cornered major share which is reflected in Ginni coefficient, a measure of wealth distribution, of 62 for our country (0 represents equality, 100 represents maximum inequality). India has developed into an unequal society and not able to provide economic justice to its ordinary citizens.

It is important to compare Chine, South Korea, Pakistan, Bangladesh and India in macro-economic indicator to understand the economic development in all these countries in four decades.

S. N.	Name of Country	Nominal GDP ($)		Per Capita Income ($)
		1970	2026	1970	2026
1.	India	62.4 billion	4.15 trillion	114	2813
2.	Pakistan (1970 Undivided figures)	10.03 billion	452 billion	167	1901
3.	Bangladesh	Not Applicable	510 billion	Not Applicable	2960
4.	South Korea	8.3 billion	1.93 trillion	253	37142
5.	China	92.7 billion	20.85 trillion	113	14874

In 1970, China’s size of economy and per capita income were comparable to India but China leapfrogged from poor country to middle income country.  Similarly, South Korea developed into higher income country which was a poor country in 1970. South Asian countries India, Pakistan, Bangladesh and other SAARC countries could not economically progress and remained poor country. Thus, SAARC country leadership must put up a singular goal to achieve economic prosperity by 2050 to lift the population from poverty.

The important ingredients for accelerated economic development of a country or region are predictable fiscal policies, rule of law and most importantly peace within the country and in the region. India’s focus shifted to prepare country from external threat after debacle with China and it got busy modernising its armed forces. Similarly, SAARC region could not develop in closed economic union due to deteriorating relationships mainly between Pakistan and India. SAARC became a forum for settling political scores rather than economic co-operation among member states for free movement of goods and services. It is ironical that SAARC population is 1.9 billion (24% of world population) with per capita income of $ 3000 and is one of poorest regions in world.

SAARC forum must prioritise its goals to give economic co-operation foremost importance so that region must achieve substantial macro-economic goals which are essential for upliftment of population from the poverty. India and Pakistan are major players in SAARC forum and their co-operation can be lynchpin for economic development of the region. The rationales for India-Pakistan dialogue and co-operation are as follows:

I. Due to mistrust and hostilities between India and Pakistan, our economic co-operation suffered due to high tariff and it has increased cost of doing business in both the countries and it has adversely affected the business competitiveness. Both countries don’t allow goods and services to flow seamlessly thus they have to import from 3^rd country at higher cost. Both countries have increased substantial Defence outlays when priorities for both countries must be development of human resources, primarily in basic education and health care.

II. India and Pakistan faces similar issues; thus, our scientist, doctors and engineers can share their experiences to find viable solutions for our shared problems such as climate change, floods, soil erosion, agro-forestry, communicable diseases and other health issues. At present, we try to import scientific and engineering solutions from OCED countries which may not be apt and viable solution for local problems.

III. India-Pakistan share historical and cultural ties which dates back to centuries. Thus, it will be futile for both countries to cut off cultural ties and don’t allow artists of both countries to work in each other’s productions and permit screening of their art works across the border. It is ironical that movies and art works are illegally imported from the other country since respective governments don’t allow legal exchanges. Artist of both countries can bring civil societies closer to each other and population of respective countries will realise that hatred may not solve entrenched problems of respective countries.

IV. India is a vast country and vast potential to influence other countries in the region with its soft power and it should not be done in paternalistic way but in the spirit of cooperation and camaraderie. India can offer VISA to general population of Pakistan for medical treatment such as Cancer, heart ailment and other rare diseases. Pakistan elite can afford treatment in western countries but general population needs affordable health care for major diseases. It can create a sense of co-operation and altruism which will go long way in reducing tension and creates groundswell for civil societies co-operation.

V. There is parallel between Germany and France and India-Pakistan relationships. Before second world war-II, nationalism gripped in Germany and France which caused serious issues in both the countries and they fought so many wars which hampered their economic development in the region. After world war-II, both countries realised the futility of unchecked nationalism and co-operated and signed treaties which led to economic development of region, students exchange programmes and civil society engagement. Thus, there is free border between two countries which eventually led to formation of euro zone. It led to prosperity in the region and it is unthinkable now that France and Germany may go to war since their destinies are intertwined. India, Pakistan can take lessons from co-operation and engagement of bitter enemies of past and find long lasting solution for their political issues for common prosperity of the region which has been held back due to hostilities and mistrust. Leadership of both the countries must show maturity to bring economic prosperity to region.

In conclusion, SAARC regional economic block can pave the way for economic upliftment of population of South Asia. Every country in the region must understand that countries in the region don’t progress in isolation since any failed country in the region will have spill-over effect on the other countries. Thus, it is important that civil society must put pressure on respective governments to improve relation with their neighbours for development of the regions as whole.

By Rajneesh Chandra and Sandeep Pandey

Contact: 8959595019, ashaashram@yahoo.com

Note: Rajneesh Chandra has retired from government service and Sandeep Pandey is Secretary General, Socialist Party (India).