A Decade of ‘Neighbourhood First Policy’
Context:
With Prime Minister Narendra Modi taking oath for a third consecutive term, India completed a decade of Neighbourhood First Policy. Leaders from South Asian countries, including Bangladesh, Nepal, Bhutan, Sri Lanka, and the Maldives, attended the swearing in ceremony event which underscores India’s commitment to its ‘Neighbourhood First’ policy.
The Concept of Neighbourhood First Policy
- Origins: The concept emerged in 2008 but was institutionalised in 2014 under Modi’s leadership.
- Objectives:
- Strengthen relations with neighbouring countries on a consultative, outcome-oriented, and non-reciprocal basis.
- Enhance infrastructure, economic, digital, trade, and people-to-people connectivity.
- Ensure regional stability and prevent external influence from hostile powers.
- Need for the Policy:
- Geopolitical shifts have increased external influence in South Asia.
- India shares deep ethnic, historical, and civilisational ties with its neighbours.
- The region’s stability is crucial for India’s security and economic ambitions.
Evolution of Indian Foreign Policy with Changing Regional Scenarios
- 2000s: India maintained engagement with neighbours but faced constraints due to coalition politics.
- 2010s:
- Democratic transitions in Bhutan and political instability in Nepal, Bangladesh, and the Maldives posed challenges.
- China’s growing economic influence through investments and the Belt and Road Initiative (BRI) created strategic dilemmas.
- Shift under Modi: A proactive approach to counter Chinese influence and enhance regional cooperation.
- 2020s:
- Sri Lanka’s economic crisis (2022) saw India extending a $4 billion bailout.
- Nepal and Bangladesh received major infrastructure and trade support.
- Strategic balancing with the Maldives despite political shifts.
Steps Taken Under Neighbourhood First Policy and India’s Strategies
- Infrastructure and Connectivity Initiatives:
- Over 100 connectivity projects with Nepal, Bangladesh, Sri Lanka, and Myanmar.
- Development of cross-border roads, railways, inland waterways, and energy grids.
- Economic Assistance:
- Credit lines to neighbouring countries:
- Bangladesh: Increased from $2.8 billion (2015) to $7.9 billion (2023).
- Nepal: $1.6 billion (2023).
- Sri Lanka: $2.7 billion (2023).
- Maldives: $1.4 billion (2023).
- Credit lines to neighbouring countries:
- Humanitarian and Security Cooperation:
- First responder during Sri Lanka’s crisis and Maldives’ economic struggles.
- Maritime security cooperation and disaster response efforts.
Key Learnings from the Policy
- Strengthening Ties with Friendly Regimes: India has doubled down on partnerships with cooperative governments while also engaging pragmatically with non-friendly regimes.
- Economic Leverage as a Tool: India uses trade, investments, and grants to maintain influence and counterbalance China.
- Challenges from China
-
- Chinese economic assistance, defence cooperation, and the deployment of surveillance vessels in the Indian Ocean region raise concerns.
- China’s control over Hambantota port, the Doklam standoff, and the Galwan clashes have increased India’s distrust.
- Adaptation in Strategy: Shift from coercion (e.g., Nepal blockade) to economic inducements and diplomatic engagements.
India’s Model vs. Other Countries in South Asian Development
Challenges and Missed Opportunities in Neighbourhood First Policy
- Negative Perception of India’s Role:
- Allegations of interventionism, such as the 2015 Nepal blockade, have damaged India’s image.
- Political interference in Bangladesh and the Maldives has fostered distrust.
- China’s Efforts to Create Mistrust:
- Promotes narratives of India’s ‘big brother’ attitude in the region.
- Uses economic influence to offer quicker and larger financial deals.
- Slow Implementation of Indian Projects:
- Delays in execution compared to China’s rapid infrastructure completion.
- Increased project costs and environmental concerns.
- Unresolved Bilateral Issues:
- Water-sharing disputes with Nepal and Bangladesh.
- Illegal fishing conflicts with Sri Lanka.
- Border disagreements (Kalapani with Nepal, Suvidha taxes with Bhutan).
Conclusion and Way Forward: Strengthening Neighbourhood First Policy
- Enhancing Speed and Efficiency:
- Reduce bureaucratic delays in project implementation.
- Increase private sector involvement for faster execution.
- Addressing Trust Deficit:
- Improve diplomatic communication and transparency.
- Avoid political interference in the domestic affairs of neighbours.
- Countering China’s Influence More Effectively:
- Expand trilateral and multilateral cooperation with Japan, the US, and Australia.
- Offer more competitive and sustainable investment models.
- Strengthening Regional Institutions:
- Revitalie SAARC or strengthen BIMSTEC as an alternative platform.
- Encourage economic integration to build a self-reliant South Asia.
India’s ‘Neighbourhood First’ policy remains a cornerstone of its foreign strategy. While successes in connectivity, aid, and diplomacy are evident, challenges persist in overcoming regional suspicions and countering China’s deep pockets. A balanced approach of economic incentives, diplomatic engagement, and regional cooperation will be key in making the policy more robust and effective in the coming years.
