Pressure tactics likely to be adopted by India: 
Stepping up diplomacy pressure on Pakistan, India said that increasing cross-border terrorist attacks in the region and growing interference in the internal affairs of Member States by one country have created an environment that is not conducive to the successful holding of the 19th SAARC summit in Islamabad in November 2016.

Sources also revealed that Afghanistan, Bangladesh and Bhutan are also likely to stay away from the Islamabad summit.

Atypical move in response to the Uri attack
The decision is unprecedented as this is the first time that India has cancelled participation in the regional group’s summit meeting because of actions that it blames on Pakistan-based elements. 

The tough step had been under consideration since the Uri attack, the second such cross border strike in nine months after the January 2 Pathankot airbase strike. India had earlier accepted Pakistan’s invitation for the summit in March during a ministerial meeting held in Kathmandu.

Probable Implications of this move
Experts said India’s cancellation might handicap economic integration in South Asia. “It is not possible to run economic integration in South Asia without the two biggest economies working together.