India, Nov. 4 -- India is creating additional energy trading opportunities for smaller Asian countries by connecting regional electricity markets and infrastructure, according to an analysis published by the Australian Institute of International Affairs.

Nepal's export of electricity to Bangladesh through India's power grid is an example of how New Delhi is enabling neighbouring countries to access additional trading options through its territory. The arrangement has wider strategic implications, as it could give smaller countries greater bargaining power and more flexibility in their diplomatic and economic relationships.

The analysis argues that India's opportunity does not lie in matching China project by project. Instead, New Delhi...