South Asian regional integration is seemingly confronting many challenges. The aim of this paper is to identify those challenges and also look for prospects. Although regional integration in South Asia has adopted a kind of institutionalization, it is yet to deliver any concrete outcomes. High-politics and the not-so-conducive regional economic structures hinder any effectual culmination. However, constructivism, as a theory, is given due credence in this paper when looking for future prospects. The paper highlights the issues, and attempts to offer (...) certain policy directions by analyzing the challenges and identifying the prospects in the on-going integration/cooperation process. (shrink)