This paper examines the key factors that determine institutional quality in the Indian subcontinent region. The investigation focuses on the four major economies of this region, i.e., India, Nepal, Bangladesh, and Pakistan. Collectively, these countries account for nearly 98 per cent of the region’s total GDP, thereby representing the economic core of the subcontinent. Based on the Worldwide Governance Indicators of the World Bank, the study constructs a PCA-weighted index of institutional quality. The findings reveal that after experiencing a significant deterioration in the institutional quality, the sample countries observed an improvement in the years following 2012. Per capita GDP, Years of schooling, and income distribution are significant determinants of institutional quality in the Indian subcontinent. Based on the findings, we draw policy implications for strengthening the regional institutional ecosystem.