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The third edition of the South Asia Defence and Strategic Year Book offers an analysis of defence, economic and social issues that impact regional security in South Asia. The wide ranging perspectives give a deep insight into the factors and linkages that impact the emerging international relations of the region, with particular emphasis on India which is an economic, military and political powerhouse with an expanding footprint in the World. South Asia is a region that is rife with geopolitics. By virtue of its population and location, it is a reflection of the challenges of the interconnected, integrated and interdependent world. Its security environment is relatively unsettled and is a reason for both hope and despair. Its issues, which have international as well as regional relevance, have their own dynamics and trends that need a deeper understanding. The Year Book aims to provide a comprehensive overview of the security environment in the region by focusing on an in-depth analysis of military capabilities and strategic imperatives obtaining in the region. Apart from outlining the general security environment, detailed military balance, trends in weapon systems and technology, defence industry, missile and nuclear capabilities and terrorism issues have been highlighted. Growing strategic linkages and independence of nation states make it imperative to consider the region as a whole to incorporate a holistic approach. The Year Book also contains studies on China and other Southeast Asian nations to that effect. Thus the underlying theme of this publication is to enable 'understanding through information'. While the threat of terrorism remains at the forefront of most analyses, the move towards popular and democratically elected governments in South Asia has not eclipsed the existing challenges to governance in all the countries of the region. Poverty and economic disparities, coupled with ethic and social divisions, have created political and social fault lines that have been exploited by non-state actors with their own agendas. Thus we hope to promote peace through understanding by delineating the issues of concern in the region.