Reimagining India’s Neighbourhood Policy

• 10 Apr 2025

This editorial is based on “Why PM’s neighbourhood engagements are significant” which was published in Hindustan Times on 03/04/2025. The article brings into picture the evolving role of India as the regional anchor, leading with initiatives like ‘Operation Brahma’ amid multiple neighbourhood crises, from Myanmar to Sri Lanka. 

For Prelims: India’s neighbourhood region, Myanmar's earthquake, Bangladesh's political upheaval, Operation Brahma, 1962 Sino-Indian War, 1971 India-Pakistan war,  "Look East" policy, BBIN (Bangladesh, Bhutan, India, Nepal) Motor Vehicle Agreement , India-Myanmar-Thailand (IMT-TH) Highway.  

For Mains: Evolution of India's Neighbourhood Policy, Implications of Instability in Neighbourhood for India

India’s neighbourhood region faces multiple crises: Myanmar's earthquake and civil war, Bangladesh's political upheaval, Nepal's democratic challenges, and Sri Lanka's fragile recovery. As BIMSTEC leaders meet in Thailand, India has demonstrated leadership through "Operation Brahma" in Myanmar, showcasing its growing capacity to assist neighbors during emergencies.  With its geographical centrality and economic resources, India serves as the fulcrum of regional cooperation. 

How India's Neighbourhood Policy Evolved Over Time?  

• Early Years (1947-1960s): Focus on Integration and Stability 
  • Post-Independence Idealism: In the immediate aftermath of independence, India's foreign policy was largely focused on fostering peace and stability in the region.  
    • India’s priorities were centered around integrating princely states, establishing the legitimacy of the Indian republic, and securing its borders. 
  • Neighbourhood Relations: In this period, India assumed a leadership role in the region, primarily focusing on establishing friendly relations with neighbouring countries. 
    • It viewed its immediate neighbours like China, Nepal, Bhutan, Sri Lanka, and Afghanistan as integral to its security and stability. 
    • However, the absence of a clear strategic vision for managing neighbourhood relations became evident during events like the Kashmir issue with Pakistan and China’s assertion in Tibet.  
• Cold War Period and Non-Alignment (1960s-1980s) 
  • The Cold War Influence: During the Cold War, India's Neighbourhood Policy was heavily influenced by its stance of non-alignment.  
    • India sought to maintain cordial relationships with both Western and Eastern blocs while being wary of foreign powers influencing its immediate neighbourhood. 
  • Sino-Indian Tensions: The 1962 Sino-Indian War and the ensuing territorial disputes with China were pivotal moments that forced India to reconsider its approach towards its borders and its neighbourhood.  
    • The unresolved issues with China, particularly over Tibet and Aksai Chin, became central to India’s security policy. 
  • Pakistan and the Bangladesh Liberation War: The 1971 India-Pakistan war, which resulted in the creation of Bangladesh, marked a high point in India’s regional diplomacy.  
  • Strategic Hesitation: India’s response to the instability in Sri Lanka, the Maldives, and Nepal was marked by hesitation.  
    • While India did intervene militarily in Sri Lanka in the late 1980s, its policy was still shaped by non-alignment and cautious engagement with its neighbours. 
• Post-Cold War and Liberalization Era (1990s) 
  • Shift in Focus with Economic Liberalization: The 1990s marked a shift in India’s approach to its neighbourhood, influenced by economic liberalization and the end of the Cold War.  
    • India sought to integrate itself into the global economy while also focusing on the economic development of its neighbours. 
  • Look East Policy: In the early 1990s, India began its "Look East" policy, which initially focused on enhancing economic and strategic relations with Southeast Asia, but gradually extended to its immediate neighbourhood.  
    • India looked to its eastern and northern neighbours to enhance trade, security, and regional integration. 
  • Increasing Tensions with Pakistan: The 1990s were also marked by escalating tensions with Pakistan, especially after the nuclear tests in 1998.  
    • India’s approach towards Pakistan became more cautious, focusing on securing its borders. 
• Neighbourhood First Policy (2000s - Present) 
  • The Birth of Neighbourhood First (2008): India’s "Neighbourhood First" policy formally emerged in 2008, underlining the importance of strengthening relationships with its immediate neighbours.  
    • This policy emphasized greater economic, diplomatic, and strategic cooperation with countries such as Afghanistan, Bangladesh, Nepal, Bhutan, Sri Lanka, and the Maldives. 
  • Regional Connectivity and Cooperation: A significant shift was the emphasis on regional connectivity, through initiatives like the BBIN (Bangladesh, Bhutan, India, Nepal) Motor Vehicle Agreement and enhancing infrastructure connectivity in the northeast.  
• Recent Trends and Adjustments (2020-Present) 
  • Turbulence in Neighbourhood Politics: Recent years have seen significant shifts in India’s neighbourhood, including political upheavals in countries like Nepal, Bangladesh, and Sri Lanka.  
    • The political turmoil in Bangladesh in 2024, the rise of anti-India sentiment in the Maldives (though under control now), and the internal strife in Myanmar have necessitated India to recalibrate its strategy. 
  • China’s Growing Influence: India has had to contend with China’s growing economic and military influence in its neighbourhood, particularly through projects under the Belt and Road Initiative (BRI).  
    • This has pushed India to enhance its strategic presence through initiatives like the Diamond of the Necklace. 
  • Increased Focus on Regional Cooperation: India’s role in multilateral institutions like BIMSTEC, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, and the South Asian Association for Regional Cooperation (SAARC) has gained prominence.  

What are the Implications of Instability in Neighbourhood for India?  

• Security Threats and Military Tensions: The instability in India’s neighbourhood exacerbates security concerns, especially with unresolved territorial disputes and growing proxy warfare.  
  • For instance, the prolonged conflict in Jammu and Kashmir, fueled by terrorism emanating from Pakistan, remains a significant challenge to India’s security. 
  • Additionally, China's increasing presence in the Indian Ocean and support to Pakistan complicates India’s security landscape. 
  • In 2024, Chief of Defence Staff (CDS) General Anil Chauhan highlighted the escalating threats on both the western and northern borders, underlining that instability in neighbouring countries directly impacts India’s national security.  
• Economic Disruptions and Trade Barriers: Instability in the region significantly hampers India's economic ties with its neighbours, particularly in trade and connectivity. 
  • The sudden regime change in Bangladesh in August 2024, severely affected bilateral trade and infrastructure projects, which had previously been growing under the "Golden Chapter" of India-Bangladesh relations.  
    • India’s exports to Bangladesh fell by 13.3% between April and October 2023, with disruptions at key land ports like Benapole-Petrapole, which handles about 30% of bilateral trade.  
• Compromised Regional Connectivity Projects: Instability in Myanmar and Bangladesh severely impacts India’s regional connectivity projects that are critical for the "Act East Policy." 
  • India’s Kaladan Multi-Modal Transit Transport Project (KMMTTP), aimed at providing the Northeast with a direct route to the Bay of Bengal, has faced persistent delays due to security issues in Myanmar, particularly the Arakan Army's control over border areas.  
  • Despite India’s investment, key projects like the Paletwa-Zorinpui highway remain incomplete, further delaying the project’s operational efficiency.  
  • Additionally, the ongoing unrest has disrupted crucial bilateral initiatives like the India-Myanmar-Thailand (IMT-TH) Highway, with only 70% of the work completed, significantly impacting regional connectivity and trade integration. 
• Diplomatic Setbacks and Geopolitical Isolation: Instability in the neighbourhood, particularly regime changes and internal political turmoil, complicates India's diplomatic relations.  
  • In the Maldives, the "India Out" campaign successfully brought to power a government that seeks to dilute India’s influence, forcing India to recalibrate its approach to regional diplomacy.  
  • These changes, coupled with growing Chinese influence in the region, undermine India’s regional leadership ambitions and weaken its diplomatic standing. 
• Humanitarian and Refugee Crisis Management: The instability in neighbouring countries like Myanmar and Bangladesh often results in significant humanitarian challenges for India.  
  • The Rohingya refugee crisis, continues to strain resources, and has led to an increase in cross-border migration pressures.  
  • India’s northeastern states, particularly Mizoram and Manipur, have seen rising tensions due to the influx of refugees and insurgent activities along the borders.  
  • Furthermore, India’s limited role in international humanitarian frameworks exacerbates the strain on its border states, as they grapple with the socio-economic burden of refugee influxes. 
• Halt in Resource Sharing Agreements: Neighbourhood instability has heightened challenges for India in managing transboundary resources. 
  • For instance, the Indus Waters Treaty, despite its historical resolution, remains strained due to political tensions with Pakistan, especially regarding the management of shared river resources.  
  • China's plan to build the world's largest dam on the Brahmaputra River in Tibet, has raised concerns in India and Bangladesh about potential downstream impacts on water flow, agriculture, and regional stability 
• Increased Strategic Competition with China: Instability in the neighbourhood, coupled with China's increasing influence, presents significant strategic competition for India. 
  • Chinese investments in Pakistan (Gwadar Port), Sri Lanka (Hambantota Port), and Bangladesh (Mongla and Chittagong), as well as its growing military presence in the Indian Ocean, complicate India's regional security calculus.  
    • This competition escalates India's security concerns, especially as China’s Belt and Road Initiative (BRI) gains traction in South Asia. 
    • It underscores the growing strategic rivalry, forcing India to recalibrate its own regional security and diplomatic policies. 
• Threat to South Asian Regionalism and Cooperation: The instability and rising tensions in India’s neighbourhood pose a threat to regional cooperation frameworks like SAARC and BIMSTEC, where India has been a key player.  
  • SAARC, in particular, has been paralysed by tensions between India and Pakistan, while BIMSTEC’s potential is constrained by Myanmar's internal strife and the shifting political landscape in Bangladesh.  
  • India’s leadership in these regional platforms has been challenged by the lack of cohesive action among member states, exacerbated by political volatility.  
    • These stalled initiatives undermine India’s efforts to strengthen regional integration and economic cooperation in South Asia. 

What Measures India Can Adopt to Enhance its Active Engagement in the Neighbourhood?  

• Strengthen Regional Connectivity and Infrastructure Development: India should prioritize the enhancement of cross-border connectivity through the development of transportation and energy infrastructure.  
  • This includes expanding road, rail, and port linkages between India and its neighbours, especially through initiatives like the BBIN Motor Vehicle Agreement and the Kaladan Multi-Modal Transit Transport Project. 
  • A "whole-of-government" approach, involving ministries like External Affairs, and Home Affairs, is crucial to ensure the timely implementation of such projects. 
    • This will not only boost trade and economic integration but also foster people-to-people connectivity, reinforcing India’s role as a regional leader. 
• Strategic Diplomatic Engagement and Conflict Resolution Mechanisms: India needs to create a more robust and consistent diplomatic outreach mechanism that transcends political regimes in its neighbouring countries.  
  • This includes enhancing multilateral diplomacy through platforms like BIMSTEC and SAARC, while also focusing on bilateral dialogues to resolve contentious issues.  
  • By facilitating open channels of communication, India can mitigate tensions and proactively address cross-border issues such as terrorism, migration, and regional security.  
  • India must also strengthen regional peace initiatives by fostering collaborative conflict-resolution frameworks that promote stability and trust-building. 
• Comprehensive Security and Defence Cooperation Framework: India should focus on building stronger security partnerships with its neighbours, emphasizing intelligence-sharing (considering the interest is secured), counter-terrorism cooperation, and maritime security.  
  • Joint military exercises, as seen with countries like Nepal, Maldives, and Myanmar, should be expanded to address common security concerns in the region.  
  • Additionally, India can enhance maritime domain awareness through shared resources and coordinated efforts to safeguard the Indian Ocean.  
    • Strengthening regional security architecture, underpinned by collaborative defence agreements, will help India bolster its position as a key security provider in the region. 
• Revitalize Economic and Trade Diplomacy: To counter China’s growing economic influence in South Asia, India should focus on a more aggressive economic diplomacy that includes offering trade incentives, investment opportunities, and soft loans to neighbouring countries.  
  • Strengthening India’s role as a trade partner through platforms like the India-Mekong Cooperation will promote regional economic integration.  
  • India should also focus on enhancing digital and financial connectivity (UPI), ensuring that its neighbours have access to India’s technological and economic potential, which would reduce their dependency on external powers. 
• Fostering Cultural and People-to-People Ties: India must expand its cultural diplomacy to deepen ties with its neighbours, leveraging its civilizational links to build goodwill. 
  • This includes promoting educational exchanges, tourism, and people-to-people initiatives that facilitate mutual understanding and cooperation.  
  • By prioritizing soft power tools such as media cooperation, cultural festivals, and academic exchanges, India can counterbalance negative perceptions and ensure long-term, sustainable engagement with its neighbours.  
    • A proactive approach to promoting mutual cultural appreciation will lay the foundation for enduring bilateral relations. 
• Regional Climate and Environmental Cooperation: Given the shared environmental challenges in South Asia, such as flooding, water management, and climate change, India should spearhead collaborative regional environmental efforts.  
  • This includes establishing a regional framework for disaster management, climate change mitigation, and sustainable development.  
  • India’s leadership in implementing green technologies and sharing climate-resilient infrastructure solutions with its neighbours will foster deeper cooperation in addressing common environmental issues.  
• Engage in Multi-Dimensional Crisis Management Mechanisms: India must enhance its crisis management capabilities by establishing rapid response teams and crisis management centers in key neighbouring countries.  
  • This would ensure that India can respond quickly to regional challenges such as natural disasters, political upheavals, and security threats.  
  • India should also work towards creating regional crisis management frameworks in collaboration with SAARC, BIMSTEC, and ASEAN to better manage collective security challenges.  

Conclusion:  

India’s neighbourhood remains a dynamic theatre of both opportunities and turbulence. Guided by the vision of SAGAR (Security and Growth for All in the Region), India's neighbourhood-first approach must now evolve into a neighbourhood-smart policy. Much of India’s neighbourhood lies within the strategic arc defined by the Rimland Theory, which posits that “who controls the Rimland, rules Eurasia, who rules Eurasia controls the destinies of the world”. This underlines the vital stakes for India—not just in fostering regional resilience, but also in asserting itself as Vishwa Mitra in an increasingly multipolar world. 

Drishti Mains Question:

“A secure and stable neighbourhood is not a choice but a strategic necessity for India.” In this context, critically examine the evolution of India’s neighbourhood policy and suggest measures to enhance its efficacy amid growing geopolitical challenges

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims:

Q. Elephant Pass, sometimes seen in the news, is mentioned in the context of the affairs of which one of the following? (2009)

(a) Bangladesh 

(b) India  

(c) Nepal 

(d) Sri Lanka 

Ans: (d) 

Q. Consider the following statements: (2020)

1. The value of Indo-Sri Lanka trade has consistently increased in the last decade. 
2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh. 
3. In the last five years, Nepal has been the largest trading partner of India in South Asia. 

Which of the statements given above is/are correct? 

(a) 1 and 2 only  

(b) 2 only 

(c) 3 only  

(d) 1, 2 and 3 

Ans: (b)

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Mains: 

Q. “China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia”. In the light of this statement, discuss its impact on India as her neighbour. (2017)