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South Asia: a region in flux
The UNESCO World Heritage Site Swayambhunath in Kathmandu, Nepal © NurPhoto
More than 20% of the world’s population lives in South Asia. Although the region is seeing breathtaking development, it remains plagued by poverty and drawn-out conflicts. The region is of great importance to Germany, as trade with some South Asian countries is booming.
Regional cooperation
In 1985, the countries of South Asia decided to establish the South Asian Association for Regional Cooperation (SAARC). The chief aim is close economic cooperation. So far, however, countries in this region conduct only 5% of their trade with other South Asian countries. Tense relations between India and Pakistan and demographic and economic disparities are hampering progress on joint SAARC projects (www.saarc-sec.org), for example expanding transport networks and energy links, as well as promoting trade and investment.
In addition to SAARC, efforts to advance regional integration include the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC; www.bimstec.org) which links seven countries in South and South East Asia around the Bay of Bengal – not including Pakistan.
Germany’s engagement in the Region
Germany nurtures close relations in a spirit of partnership with the countries of South Asia. Two‑way visits are conducted regularly by members of government and parliament, thus maintaining intensive contact with decision-makers in the region. Germany is an important economic and development partner for South Asian countries and funds a wide range of projects. These include the development of renewable energies as well as promoting urban development, vocational training, healthcare and democratic advances, as well as strengthening the rule of law.
Since the Taliban seized control of Afghanistan in the summer of 2021, the framework conditions for the German Government’s engagement there have been fundamentally reset. Although Germany has always maintained diplomatic relations with Afghanistan, it does not recognise the de‑facto Taliban government as Afghanistan’s legitimate government. In order to improve security and stability in the region, Afghanistan must fulfil its international obligations. Not least, this includes respecting human rights standards. To this end, we are working together with many other states in the Doha process. This UN‑led process is the only forum aimed at reintegrating Afghanistan into the international community. German and international partners’ efforts are currently focused on the promotion of human rights – especially those of women and girls – as well as on promoting freedom of opinion in Afghanistan, and on the provision of humanitarian assistance to the people of Afghanistan. Germany will therefore continue its engagement, and it will remain one of the largest bilateral donors of humanitarian assistance to the country.
Germany is an important economic partner for Bangladesh, serving as a major export market, especially for textiles. Here, the German Government is working to improve social and ecological minimum standards. Bangladesh is a development cooperation partner of Germany, with the main projects being in the areas of climate/renewables, sustainable economic development and biodiversity. Germany is also helping Bangladesh provide for the around one million Rohingya refugees from Myanmar.
Diplomatic relations with the Kingdom of Bhutan were established in November 2020. Even before that, private German associations provided active support in the education and healthcare sectors, as well as help to preserve Bhutan’s cultural heritage. This assistance is supported in part by the German Embassy in New Delhi and the Federal Ministry for Economic Cooperation and Development.
India is by far Germany’s most important partner in South Asia. It accounts for around three quarters of the population and economic output of the entire region. Federal Chancellor Merz visited the country in January 2026 during his first trip to Asia, where he stressed that India is a partner of choice for Germany. Foreign Minister Wadephul had previously visited India back in September 2025. Germany and India have cultivated a strategic partnership for more than 25 years and have maintained diplomatic relations for the last 75 years. The German Government is currently expanding these relations extensively. The next intergovernmental consultations are scheduled for autumn 2026.
The successful EU‑India Summit at the end of January 2026 and the now concluded negotiations on one of the world’s largest free trade agreements, which will benefit almost two billion people, demonstrated that relations with India are also high on the agenda at European level. The EU and India have also concluded a security and defence partnership and agreed on a comprehensive strategic agenda until 2030.
The Maldives is an archipelago of almost 1200 islands with an exclusive economic zone of one million square kilometres in the western Indian Ocean. With just under two million visitors, tourism generates around 70% of the country’s annual GDP. Some 100,000 Germans visit every year. The Maldives opened an Embassy in Berlin in 2016 and there is a German honorary consul in Malé.
Nepal, a landlocked Himalayan country, has been the focus of civil society engagement on the part of numerous German organisations and associations in the fields of education and healthcare for over 50 years. Government development cooperation primarily promotes the energy sector through the construction of hydroelectric power plants and power lines. Furthermore, Germany supports Nepal as it endeavours to overcome the consequences of the prolonged civil war.
Germany is engaged in Pakistan with the aim of fostering democratic and stable development in the world’s fifth largest country – with a population of approximately 251 million – and wants to see it play a constructive role in the region. Bilateral development cooperation focuses on good governance, climate and energy, as well as sustainable economic development. With 3.4 billion US dollars in bilateral trade in 2024, Germany is one of Pakistan’s most important trading partners in the EU. Germany also supports humanitarian assistance projects.
Germany is assisting Sri Lanka as the country works to reconcile its ethnic groups following a long civil war. It also provides advice on constitutional issues and promotes vocational training for young Sri Lankans. Since 2018, Germany has also had a chamber of commerce in the capital Colombo. Following national bankruptcy in 2022, the country is becoming increasingly stable. Sri Lanka’s economic potential and its appeal as a tourist destination are attracting growing interest, also in Germany.
