Published on 22 Jan 2025
The principles of engagement in the neighbourhood has been outlined in the form of Samman (respect), Samvad (dialogue), Shanti (peace), Samriddhi (prosperity) and Sanskriti (culture). The ‘Neighbourhood First’ Policy underlines the renewed primacy that India seeks to attach to its neighboring countries to comprehensively upgrade and strengthen the current relationship framework and achieve the goal of lasting peace, stability and prosperity in the region.
Key Features of India's 'Neighbourhood First' Policy
✔ Immediate Priority to Neighbours: It recognizes that peace and stability in South Asia are essential for achieving the development agenda.
✔ Dialogue: Vigorous regional diplomacy is a cornerstone of the policy.
● Example: Notable initiatives include inviting heads of government from SAARC countries to the Prime Minister's oath-taking ceremony in 2014.
✔ Resolution of Bilateral Issues: The policy emphasizes resolving bilateral issues through mutual agreements.
● Example: The operationalization of the historic Land Boundary Agreement (LBA) between India and Bangladesh.
✔ Connectivity: India has entered into Memorandum of Understanding (MoUs) with SAARC member countries to facilitate the free flow of resources, energy, goods, labor, and information across borders.
✔ Economic Cooperation: The policy aims to enhance trade ties with neighbouring countries.
● Example: Initiatives like the Bangladesh-Bhutan-India-Nepal (BBIN) grouping focus on energy development, motor vehicles, waterpower management, and inter-grid connectivity.
✔ Technical Cooperation: The policy emphasizes technical cooperation.
● Example: India developed a dedicated SAARC satellite to facilitate technology sharing, including telemedicine and e-learning, across South Asia.
✔ Disaster Management: India's expertise in disaster management is extended to South Asian countries in times of need.
● Example: For instance, India provided significant assistance to Nepal after the 2016 earthquake.
✔ Military and Defence Cooperation: The policy aims to deepen security in the region through military cooperation.
● Example: Joint exercises like Surya Kiran with Nepal and Sampriti with Bangladesh strengthen defence relations. India also plays a role in capacity building for the Afghan National Army by providing training.
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Examples relevant to Mains Improved Connectivity in the Region ✔ Projects like Chabahar Port and the Zaranj Delaram highway improve links to landlocked Afghanistan and connect South Asia to Central Asia. ✔ India and Bangladesh have prioritized connectivity through road, rail, inland, and coastal waters, with plans to use Chattogram and Mongla Port for Northeastern States' access to the sea. ✔ The Kaladan multi-modal transport project and the Trilateral Highway project are creating communication lines between South and South-East Asia. ✔ The BBIN (Bangladesh Bhutan India Nepal) configuration is promoting greater connectivity and growth in the region. ✔ Air connectivity, like the Chennai-Jaffna passenger air link, has been resumed, improving regional travel options. Energy and Technology ✔ Cross-Border Pipelines ● Cross-border pipelines linking India and Nepal (via Motihari and Amlekhgunj) and a planned pipeline between Siliguri and Jhapa. ● Construction of the India-Bangladesh Friendship Pipeline linking Siliguri to Parbatipur in northern Bangladesh. ● Empanelment of Indian Oil Corporation Ltd. (IOCL) as a G2G supplier of refined petroleum products to Bangladesh. ● Indian investments in exploration and upstream hydrocarbon production in the region, including USD 1.4 billion in gas assets in Myanmar. ✔ Grid Interconnection ● High-capacity grid connections between India and Nepal, Bhutan, and Bangladesh, with plans for augmentation. ● India's ability to supply about 1160 MW of power to Bangladesh, about 700 MW to Nepal, and import 1.8 GW from Bhutan. ✔ Creating Regional Power Capacity ● India's creation of 2136 MW of hydropower capacity in Bhutan and ongoing projects. ● Construction of the 1320 MW Maitree Super Thermal Power Project in Bangladesh. ● Implementation of hydropower projects with over 4000 MW capacity in Nepal. ● Offer of a USD 100 million Line of Credit for the development of solar power projects in Sri Lanka. ● Initiatives for the distribution of solar power in Myanmar's Rakhine State. ✔ Technology ● Launch of the South Asia Satellite in May 2017, facilitating technology-driven connectivity. ● Launch of India-Bhutan Sat, jointly developed by India and Bhutan, in November 2022. Economic Dimensions ✔ Shared Geographic Space and Challenges ● The vision of "Sabka Saath, Sabka Vikas, Sabka Vishvas, Sabka Prayas" guides India's approach to the neighbourhood. ✔ Trade with Bangladesh ● Bangladesh is India's largest trade partner in the region, with bilateral trade increasing by 68% in 2021-22, reaching USD 18.14 billion. ● A network of 36 Land Customs Stations and 4 Integrated Check Posts facilitates goods and people movement between the two countries. ✔ Economic Partnership with Bhutan ● India is Bhutan's primary economic and trade partner. ● Efforts to diversify Bhutan's market for goods in India and increase trade avenues with other countries. ● Special market access and export quotas provided to Bhutan. ✔ Trade and Transit with Nepal ● India is Nepal's largest trading partner and foreign investor. ● Facilitation of transit for the majority of Nepal's third-country trade. ● Expanding economic partnership to agriculture, inland waterways connectivity, and energy cooperation. ✔ Trade Relations with Sri Lanka ● India was Sri Lanka's second largest trading partner in 2021, with bilateral merchandise trade totaling USD 5.45 billion. ● India was the third largest export destination for Sri Lanka and the second biggest source of imports. ● Significant contributions to Foreign Direct Investment in Sri Lanka. ✔ People-Centric Development ● India's Lines of Credit to its neighbours have increased from USD 3.27 billion in 2014 to USD 14.7 billion in 2020. ● Nearly 50% of India's global soft lending benefits its partners in the neighbourhood. Social Engagement ✔ Educational ● India serves as the educational hub of the neighbourhood. ● The Indian Technical and Economic Cooperation program leverages India's educational strengths. ✔ Healthcare Hub ● India is the healthcare hub for the neighbourhood. ● India's medical tourism industry has grown rapidly with nearly 2 million patients visiting from neighbouring countries each year and generating $13 billion in forex annually. ● Vaccine Maitri, an initiative to make India's vaccine manufacturing capacity available to neighbouring countries, reflects the Neighbourhood First policy in action. ✔ Strong Relations with Neighbours ● Specific expressions like 'India First' policy in Maldives, 'Sonali Adhyay' in India-Bangladesh ties, and 'B4B - Bharat for Bhutan and Bhutan for Bharat' signify India's strong relations with its neighbours. |
Challenges in India's Foreign Relations
✔ Relations with Pakistan: Managing relations with Pakistan remains India's most significant diplomatic and security challenge.
● Example: Pakistan openly uses terrorism as an instrument of state policy, leading to fractured and complex power dynamics.
✔ Unstable Afghanistan: Afghanistan poses another challenge, as it remains fragile internally and faces external threats, particularly from Pakistan.
● Example: A potential state collapse in Afghanistan could lead to increased jihadist terrorism, affecting India's security.
China: China's growing presence in the region presents a significant challenge to India.● Example: The China-Pakistan Economic Corridor running through Pakistan-occupied Kashmir (POK) is a source of concern for India.
✔ Anti-Indian Sentiments: Perceived notions of India's "big brother" attitude and economic dominance have led to anti-Indian sentiments in the region.
● Example: ‘India Out’ campaign in Maldives.
Way Forward
✔ Transportation and Connectivity: India should lead in establishing cross-border transport links, fostering regional trade and closer ties.
✔ Strengthening Markets and Infrastructure: Collaborate with neighbours to bolster their markets and improve India's infrastructure connections in the region.
✔ Dialogue and Development Support: Assure continuous support for neighbours' development efforts and enhance regional trade.
✔ Leveraging Soft Power: Use India's cultural influence to strengthen ties through cultural exchanges and cooperation.
✔ Sustainable and Inclusive Development: Focus on sustainable, inclusive development and collaboration on common challenges.
India's immediate neighbourhood plays a significant role in its geopolitical, geostrategic, and geo-economic interests. Working closely with its neighbours is vital for India's rise as a regional and global power.
World Affairs
Afghanistan
Pakistan
Nepal
Bangladesh
Srilanka
Maldives
Bhutan
General Studies Paper 2
India and Its Neighbors