The peace process between India and Pakistan came to an abrupt halt with the Mumbai attacks on November 26, 2008 (26/11). Ironically, the attacks were carried out by Pakistani terrorists minutes after the foreign ministers of both countries met in New Delhi and pledged to take the composite dialogue process forward. Ever since, Pakistan's unwillingness to bring the perpetrators of the Mumbai attacks to justice has come in the way of resumption of the composite dialogue. There have been many false starts, but the process continues to be in a state of suspended animation.

The India–Bhutan relationship is perhaps the only bilateral engagement in South Asia, yielding high dividends to both parties. While Bhutan all through the years has appreciated India for its economic assistance, India, for its part, has been sensitive to Bhutan's developmental needs. The relationship has helped Bhutan shape a unique developmental trajectory based on gross national happiness. Bhutan's economy has grown substantially in recent years. However, the development cooperation between the two countries can be effectively divided into three significant waves.