1)Its importance cannot be over emphasized. Each country irrespective of its size needs some kind of cooperation from others to handle the challenges which may be economic, technology, education, health, peace etc.
2)Even the sole Super Power U.S.A. also needs the cooperation of small and big countries like, Russia, China, India and Pakistan to stabilize its economy, to reduce nuclear war heads, to improve its cutting edge technology and to fight terrorism on global scale.
3)India also has the same predicament. It needs cooperation from its small but irksome neighbors like Pakistan, Nepal, Bangladesh and Sri Lanka to maintain both internal and external security and to have peaceful existence to provide better economic and quality life to its billion plus citizens. But it looks like we are not getting that despite our best efforts. Small neighbors have small brains sadly.