This chapter critically examines the development narratives in South Asia, emphasizing the enduring influence of colonial legacies and neoliberal globalization on contemporary paradigms. It explores how colonial rule entrenched economic structures favouring metropolitan interests, leading to persistent inequalities and dependency in the postcolonial era. The analysis highlights the role of global institutions, such as the World Bank and IMF, in shaping South Asian development policies, often promoting neoliberal agendas that may not align with regional needs. The chapter discusses the limitations of prevailing development discourses, particularly their challenges in achieving inclusive growth. Issues such as economic disparities, social exclusion, and environmental degradation are examined to understand the complexities and constraints of existing development models. Furthermore, the chapter assesses the role of regional cooperation frameworks, notably the South Asian Association for Regional Cooperation (SAARC), in addressing development challenges. It discusses the organization’s potential to foster regional integration and promote indigenous development strategies, despite facing obstacles like political tensions and implementation deficits. It concludes by proposing ways to rectify these flaws and align development strategies with regional needs and aspirations.