India in the Game of Regional Integration: Great Expectations, Complex Realities

Abstract

            India’s approach to regional integration can be analyzed through the Prisoner’s dilemma, where cooperation among nations could lead to mutual benefits, but conflicting national interests often result in suboptimal outcomes. As a major player in South Asia, India engages in regional frameworks like SAARC, BIMSTEC, and the India-Middle East-Europe Economic Corridor (IMEC), seeking economic integration and strategic partnerships. However, regional cooperation is frequently hindered by trust deficits, geopolitical rivalries, and economic disparities, leading to a non-cooperative equilibrium where nations prioritize short-term national gains over long-term collective benefits. India's withdrawal from RCEP exemplifies this dilemma, as concerns over trade imbalances and domestic industry protection outweighed potential regional advantages.            

            This paper explores how game-theoretic constraints shape India’s regional strategy, analyzing the challenges of fostering cooperation in a landscape where countries often fear exploitation. By applying the prisoner’s dilemma framework, the study highlights the complexities of India's regional engagements and the need for mechanisms to build trust and enhance collective economic gains.