The Kashmir dispute dates from 1947. The partition of the Indian sub-continent along religious lines led to the formation of India and Pakistan. However, there remained the problem of over 650 states, run by princes, existing within the two newly independent countries. The India–Pakistan relationship, after the overt nuclearisation in May 1998, the Kargil Conflict of 1999, the border mobilisation of 2002 and the continuing insurgency in Kashmir, remains tense. Kashmir is a disputed territory divided between India and Pakistan but claimed in its entirety by both sides. It is a “territorial dispute” only in the sense that the State of Jammu and Kashmir is disputed territory and is so recognized internationally. But the expression can be misleading. For it usually suggested contentious claims of two states to a territory, one party basing its claim on the validity of a de facto or de jure boundary demarcation and the other challenging it. That is why territorial disputes are hardly distinguishable from border disputes, amenable to solution through bilateral agreement, judicial determination or, more often, arbitration. This book explores the possibility of economic cooperation—including both trade and common infrastructure projects—taking place and spilling over into security cooperation.