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Abstract
The present paper attempts to put in perspective the political, economic and security dimensions of the bilateral relations between India and Pakistan. It would also discuss the issues and challengesthat prevent both countries from reaching their full potential of bilateral engagement which definitely would have both regional and global significance. India enjoys strong cultural, linguistic and ethnic connections with the neighboring countries of South Asia. Among the South Asia countries, India is the largest which accounts for 70 per cent of population, nearly 80 per cent of the gross domestic product (GDP) and about 75 per cent of the regional economic output. India shares boundary with all the South Asian neighbours. The changing environment also demands India to maintain stability in its relations with its neighbours. From the geo-strategic and geo-political point of view, India’s relations with the South Asian neighbours have been guided by – first, its desire to protect the sub-continent from the adverse external forces that might destabilize India’s security environment and secondly, its desire to ensure that geographically proximity and ethno-religious affinities do not lead to instability on or near its border, particularly as they inevitably may affect its domestic, ethnic, religious and political relationships.