Regional Groupings are a type of institution defined as international organizations (IOs) whose membership is limited to states within a single geographic region. They are established to foster cooperation, political and economic integration, or dialogue among member states. A key example is the South Asian Association for Regional Cooperation (SAARC), which was formally established in Dhaka, Bangladesh, on December 8, 1985. SAARC was created to promote the general welfare and strengthen economic growth among South Asian countries. Its mechanism includes promoting regional integration through the South Asian Free Trade Area (SAFTA), which has been in effect since 2006.
However, due to political differences, SAARC summits have not been held since the 18th summit in Nepal in November 2014. This stagnation has led India to pursue alternative regional initiatives, such as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), which was established on June 6, 1997. BIMSTEC is a critical component of India's Act East Policy and aims to improve technological and economic cooperation between South and Southeast Asian countries.
BIMSTEC functions through a five-tiered mechanism, with the Summit (Heads of State or Government) serving as the supreme decision-making body. Cooperation within BIMSTEC is guided by principles like sovereign equality and non-interference in internal affairs. The grouping has identified 14 priority areas, including Transport and communication, Tourism, and Counter-terrorism. The shift from SAARC to BIMSTEC and sub-regional groupings like the Bangladesh-Bhutan-India-Nepal (BBIN) initiative demonstrates a recent change in India's regional cooperation strategy, prioritizing sub-regional integration. Regional groupings are also connected to broader economic concepts like a Free Trade Area or Customs Union.