Since adopting liberal economic policies two dacades ago, India has become one of the two fastest growing economies in the world. While India has been reaching out to various regions such as southeast Asia and the middle East for expansion and strengthening its linkages, its relations with its immediate South Asian neighbours remain problematic. Her bilateral relations with the other regional countries have traditionally been contentious due to border issues as well as the fears and resistance of smaller countries to an Indian hegemony in the region.