India and Economic Blocs.

Most developing countries in the world have been joining forces with each other forming economic blocs. This gives them easier access to each other's markets (and raw materials.) The concept exists internationally as well - under the UNO and European Union for example.The EU now includes several developing states as well - and in time, this should ensure that these states achieve a level of prosperity like the developed EU members through open trade.

Another successful trade bloc is the African Union. It has been credited with the rise of economies like Kenya , Namibia ,Ethiopia and Ivory Coast - though it is a little handicapped by the likes of Olusegun Obasanjo and Mugabe.

Of course, India has had its trade bloc as well - SAARC. It was started with rather high hopes. (Still remember me watching some cultural programmes sponsored by it on Doordarshan on Sundays,long long ago.)
However the bloc never really made progress beyond the annual posturing of the leaders of the member states. The main reason was that the two largest and most influential members -India and Pakistan - managed to derail the entire system by insisting on opening up the Kashmir issue at every forum including this one.
The smaller states also had their own peeves. Bangladesh was suspicious of Pakistan. Bhutan and Maldives never had any say in any of the matters - and have been accused within their own countries of openly towing India's line. Nepal views India and its intentions with suspicion, and this coloured their dealing on SAARC as well.

SAARC still exists of course. India did give "Most favoured nation" status to Pakistan sometime ago -as a goodwill gesture. Pakistan hasn't reciprocated, and this has given India another reason to cry foul. Increasingly the SAARC summits are viewed with frustration, and for the average Indian- the interest lies more with seeing the Indian and Pakistani heads of state together rather than with anything else.

Afghanistan has recently joined SAARC as well. For a change both India and Pakistan were united on this.India also wants Russia in, while Pakistan is keen on China. However the disagreement regarding admission of these countries means that both of them are still out. The wide disparities in stage of development, as well as international priorities, commitments, regional influence and alliances among the members have made it tough for it to be effective.

Several members have also concluded extra-SAARC agreements. India has openly backed Bhutan, Maldives and previously Nepal too. It has also opened up trade routes to China.

Ever since SAARC turned ineffective, India has tried to warm upto other trade blocs - most notably ASEAN. ASEAN is hailed as one of the most sucessful blocs worldwide and the driving force behind the rapid growth of its member states.ASEAN though initially to include India, finally allowed it to be part of the East Asia forum, and now is on the verge of concluding a free trade agreement with it.

Economics (and common sense) says that free trade helps nations achieve their development goals faster. Hence its in India's interest to maximize free trade and economic cooperation.However given India's increasing reputation as a bit of a regional bully, its historical proximity to Russia, its status as a nuclear weapon state, its new found friendship with the US, and its location amidst states like Pakistan, Nepal, Bangladesh and Sri Lanka have made it tough for it to be trusted enough to be made a open trade partner.
Hopefully as the world sees India on the way to becoming a superpower (both economic and otherwise), everyone else should have very little choice on that.