India’s Foreign Policy With Neighbourhood
02:34 AMAugust 19, 2025

India’s Foreign Policy With Neighbourhood

India’s Foreign Policy in its Neighbourhood

Introduction

  • India’s neighbourhood comprises South Asia and adjoining Indian Ocean Region (IOR), encompassing nations with shared historical, cultural, and economic ties.
  • Policy evolution shaped by colonial legacy, Cold War dynamics, post-liberalisation economic interests, and current geopolitical competition.
  • Central pillar: Peaceful, prosperous, and cooperative neighbourhood to ensure regional stability and India’s strategic security.

Geographical Scope

  • Core neighbours: Afghanistan, Bhutan, Bangladesh, Maldives, Pakistan, Nepal, Myanmar, Sri Lanka, and the Tibetan Autonomous Region of China.
  • Wider sphere: Includes Indian Ocean littorals under IORA, BIMSTEC.
  • Strategic diversity: Variance in size, economic strength, governance models, and external alignments.

Evolution of Policy Towards Neighbours

1. Colonial Legacy (Pre-1947)

  • Buffer zones (Afghanistan, Tibet) to protect British India.
  • Treaty of Sagauli (1816) – Nepal ceded territory to British.
  • Anglo-Bhutanese Treaty (1865) – Control of Assam passes.
  • Annexation of Burma (1824–1885) for resource exploitation.
  • Sri Lanka under British until 1948.

2. Early Independence Era (1950s–60s) – Idealism

  • Non-Aligned Movement (NAM) – Balancing Cold War blocs.
  • Panchsheel Agreement (1954) – Five principles with China.
  • 1962 Indo-China War – Security reorientation.
  • 1965 Indo-Pak War – Kashmir conflict deepened.

3. Assertive Phase (1970s–80s)

  • 1971 Bangladesh Liberation War – Strategic intervention.
  • Formation of SAARC (1985) for regional cooperation.
  • India–Sri Lanka Accord (1987) – Political settlement effort.
  • Operation Cactus (1988) – Maldives coup prevention.

4. Post-Cold War Pragmatism (1991–2013)

  • Look East Policy (1991) – ASEAN engagement.
  • Gujral Doctrine (1996) – Non-reciprocal goodwill to neighbours.
  • Formation of BIMSTEC (1997) & IORA (1997).

5. Neighbourhood First (2014–Present)

  • Priority to South Asia & IOR partnerships.
  • PM invited SAARC leaders to 2014 swearing-in.
  • Landmark India–Bangladesh Land Boundary Agreement (2015).
  • Vaccine Maitri during COVID-19 pandemic.

Key Initiatives with Neighbours

1. Regional Policies

  • Neighbourhood First Policy – Peace, prosperity, connectivity, mutual respect.
  • Act East Policy – Deepening ASEAN ties via Northeast India as gateway.

2. Connectivity & Infrastructure

  • Kaladan Multimodal Project – India–Myanmar.
  • BBIN Motor Vehicles Agreement – Passenger & cargo transit.
  • Chabahar Port – India–Iran–Afghanistan trade route.

3. Development Cooperation

  • Hydropower cooperation – Bhutan, Nepal.
  • ITEC training & ICCR scholarships.
  • South Asia Satellite (2017) – Disaster management & communication.

4. Country-Specific Projects

  • Maldives – Greater Male Connectivity Project.
  • Sri Lanka – Unitary Digital Identity; economic aid in crisis.
  • Bangladesh – Teesta & river water sharing agreements.
  • Myanmar – Disaster management, healthcare, education support.
  • Afghanistan – Salma Dam (2016), Afghan Parliament building.

Instability in India’s Neighbourhood

Challenges in Neighbourhood Policy

  • Border disputes: LAC with China, LOC with Pakistan.
  • Cross-border terrorism: Primarily from Pakistan-based groups.
  • China’s Influence: BRI penetration in almost all neighbours except Bhutan.
  • Water-sharing disputes: Indus Treaty (Pakistan), Teesta (Bangladesh).
  • Political instability: Myanmar coup (2021), Sri Lankan crisis.
  • Perception issues: “Big brother” image affecting trust.

Way Forward

  • Economic Integration – Raise South Asia’s intra-regional trade from current ~5% to 20% (World Bank data).
  • Security Cooperation – Maritime domain awareness, counter-terror coordination under SAARC/BIMSTEC.
  • Soft Power Diplomacy – Buddhism, Bollywood, cricket, and educational exchanges.
  • Competitive Infrastructure Financing – Alternatives to Chinese BRI with transparency.
  • Inclusive Diplomacy – Engage all political stakeholders in neighbouring countries.

Conclusion

  • Neighbourhood stability is essential for India’s rise as a global power.
  • Quote for Mains:
    “India cannot rise to its full potential without the prosperity of its neighbourhood.” – Former PM I.K. Gujral
  • Strategic vision must blend security pragmatism, economic interdependence, and cultural connect to create a stable and cooperative periphery.

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