
India8217;s decision to attend the postponed annual summit of the South Asian Association of Regional Cooperation SAARC in Dhaka was inevitable. In February, it had expressed its displeasure at the turn of events in Nepal and Bangladesh by refusing to join the conclave. Unhappy about the coup in Nepal by King Gyanendra and upset over the killing of a former finance minister in Bangladesh, India decided to stay away from the deliberations. Despite the intensity of the provocations, New Delhi could not have forever made SAARC hostage to its political differences with its neighbours. After all, India has an independent interest in promoting economic regionalism in the subcontinent.
India8217;s uncompromising stance on Nepal, in order to compel King Gyanendra to restore democracy, received strong support from the United States, Great Britain and the European Union. But New Delhi evidently realised that coercive diplomacy has its limits. Growing concerns about the danger of isolating Nepal for too long had to be taken into account. While India has re-established political contact with the king, which includes the supply of arms, it continues to insist that he must come up with a road map for the restoration of democracy. On Bangladesh, too, India has come to the conclusion that without a political engagement, relations with Dhaka are likely to deteriorate further.