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Q. The concept of 'Extended Neighborhood' has become central to India's foreign policy. How does this concept shape India's strategic and economic engagements beyond its immediate neighbors? (250 words)
11 Feb, 2025 GS Paper 2 International RelationsApproach
- Introduce the answer by briefing about India’s Extended Neighbourhood Policy.
- Give Key Initiatives Shaping India’s India’s Extended Neighborhood Engagement
- Delve into the Strategic Implications of the Extended Neighborhood Policy
- Highlights its challenges and suggest measures
- Conclude with a forward looking approach.
Introduction
India’s "Extended Neighborhood" policy expands its strategic focus beyond immediate neighbors to include regions such as West Asia, Central Asia, Southeast Asia, and the Indo-Pacific.
- It is evident in initiatives like Act East Policy, Connect Central Asia, Indo-Pacific Vision and India–Africa Forum Summit.
Body
Key Initiatives Shaping India’s India’s Extended Neighborhood Engagement
- Southeast Asia:
- Act East Policy (2014): Deepening economic, maritime, and security ties with ASEAN.
- India-ASEAN Maritime Exercise (2023): Enhancing maritime security and countering Chinese influence.
- QUAD (India, US, Japan, Australia): Strengthening Indo-Pacific security.
- India-Myanmar-Thailand Trilateral Highway and Kaladan Multi-Modal Transit Project
- West Asia:
- India-UAE Comprehensive Economic Partnership: UAE eliminated duties on 97.4% of its tariff lines corresponding to 99% of imports from India.
- RuPay card and UPI integration with UAE (2024) for financial transactions, reducing dependence on the dollar.
- I2U2 Initiative (India, Israel, UAE, US) (2022): Focus on food security, clean energy, and trade.
- Chabahar Port Development (Iran): Facilitating trade access to Central Asia and Afghanistan.
- India-Saudi Strategic Partnership Council (2019) to deepen energy collaboration.
- India-UAE Comprehensive Economic Partnership: UAE eliminated duties on 97.4% of its tariff lines corresponding to 99% of imports from India.
- Central Asia:
- "Connect Central Asia" Policy (2012): Strengthening political and security ties.
- India-Central Asia Summit (2022): High-level engagement on trade, security, and connectivity.
- Military Cooperation with Tajikistan: India operates the Farkhor Airbase, enhancing its strategic reach.
- Energy Security: India aims to access Turkmenistan’s gas fields via the TAPI pipeline.
- Connectivity Projects: Chabahar Port – INSTC: Links India, Iran, Central Asia, and Russia, reducing trade costs and bypassing Pakistan.
- Africa:
- India-Africa Forum Summits (Since 2008): Strengthening diplomatic and development cooperation.
- The African Union (AU) has been made a permanent member of the G20 during India’s 2023 G20 Presidency.
- Defence: India has established defense agreements with multiple African nations, including Mozambique and Madagascar.
- Since 2008, the Indian Navy's anti-piracy operations off Somalia’s coast have safeguarded both Indian and global maritime trade.
- Renewable Energy: The International Solar Alliance, spearheaded by India, has earmarked USD 2 billion for solar projects in Africa.
- India-Africa Forum Summits (Since 2008): Strengthening diplomatic and development cooperation.
Strategic Implications of the Extended Neighborhood Policy
Dimension Implication Economic Growth Expanding markets for trade and investment (ASEAN, Africa, Gulf). Energy Security Diversifying oil and gas imports (West Asia, Central Asia, Africa). Maritime Security Strengthening naval presence in the Indo-Pacific and Counter China’s rise in Indian Ocean (e.g, Hambantota Port) Geopolitical Leverage Countering China’s Belt and Road Initiative (BRI) with infrastructure projects. Connectivity Enhancement INSTC, India-Middle East-Europe Economic Corridor, India-Myanmar-Thailand Highway for better regional integration. Challenges in Implementing the Extended Neighborhood Policy
- China’s Growing Influence: String of Pearls ports and BRI projects limit India’s strategic reach.
- Slow Infrastructure Execution: Delays in key projects like the Chabahar Port and India-Myanmar-Thailand Trilateral Highway weaken regional connectivity.
- Geopolitical Uncertainties: US-Iran tensions impact Chabahar; raised tensions in West Asia (Israel Hamas War) impacting collaboration.
- Trade Barriers: India’s Regional Comprehensive Economic Partnership exit safeguards industries but reduces ASEAN market access.
Measures for Enhanced Implementation of Extended Neighborhood Policy:
- Strengthening Regional Connectivity: Fast-track Chabahar Port and INSTC projects.
- Countering China’s Influence: Enhance India's infrastructure investments in ASEAN, Central Asia, and Africa through Diamond of Necklace initiative.
- Boosting Defense Diplomacy: Expand military partnerships with Gulf nations, Africa, and Southeast Asia.
- Economic Integration: Negotiate bilateral FTAs with ASEAN and Africa to enhance trade.
- Leveraging Technology Diplomacy: Promote AI, fintech, and space cooperation in emerging markets.
Conclusion
India’s Extended Neighborhood Policy has positioned it as a regional and global power, ensuring economic growth, strategic security, and geopolitical influence. However, to sustain its leadership, India must enhance connectivity, counter China’s influence, and deepen economic partnerships. The success of this approach will define India’s role in shaping the 21st-century global order.
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