India occupies a strategic position in Asia. She shares a political borders with Pakistan in the west; Bangladesh and Myanmar (Burma) in the east; China, Tibet, Nepal and Bhutan in the north; and Sri Lanka in the South. India has always been friendly with her neighbors. Jammu and Kashmir has been a bone of contention between India and Pakistan. Infiltration of Bangladeshis and Ganga water-sharing issue have been a problem between India and Bangladesh. The LTTE problem has strained the relations between India and Sri Lanka. China illegally occupied a part of the Indian territory. Nepal and Bhutan have friendly ties with India except for smuggling of drugs and other valuables in the cross-border area. The SAARC and the SAFTA have been established to restore namely both politically and economically in the Asian region.