Abstract
South Asian strategic environment pivots around threat perception and security dilemma vis-à-vis India and Pakistan. It encompasses all elements of strategic environment theory i.e. Volatility, Uncertainty, Complexity and Ambiguity (VUCA).The rapid technological transformation and subsequent doctrinal shifts reflect the causal effects. However, the strategic stability largely depends upon the robustness of deterrence stability which is being eroded in purview of armed forces’ modernization in the South Asian region. India has been given discriminated memberships of Missile Technology Control Regime (MTCR). Wassenaar Arrangement (WA) – and Australia Group (AG) three out of the four export control cartels, which would enable India to put its BMD program and space weapons ambition on a fast track, thus eroding strategic stability and deterrence equation in the region. In addition, India is being projected as counter weight to rising China at the cost of peace and stability. The article puts in perspective elements of strategic environment with regard to South Asia and epitomizes the causal effects of the Indian operationalization of BMD shield and space weapons which could initiate a new wave of arms race thus compromising South Asian strategic stability.