South Asia is one of the very few regions in the world with geographical contiguity as well as linguistic and cultural homogeneity. The region, inhabited by more than one-fifth of global population, is afflicted by a number of social, political and economic problems compounded by political mistrust and suspicion. The South Asian states are plagued by inter-state conflicts over boundaries. In addition, there is a sharp increase in unemployment, poverty, epidemics, drug trafficking, and environmental degradation etc. in the region which have internal and external dimensions. All these issues pose a far more serious and immediate challenge to the region.