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#lecturette@ssbclear 19 SSB PRAYAGRAJ India’s Neighbourhood Policy 1 AFSB Dehradun You can change friends but not neighbours. Atal Bihari Vajpayee 1. Introduction India’s neighbourhood policy refers to its diplomatic, economic, and security approach toward countries in its immediate region — primarily SAARC and Indian Ocean neighbours. Guided by the principle of “Neighborhood First”, India aims to promote regional stability, economic integration, and mutual development. As the largest country in South Asia, India plays a key role in shaping peace, connectivity, and cooperation in the region. 2. Key Principles of India’s Neighbourhood Policy * Priority to Immediate Neighbours: Bilateral and regional cooperation with countries like Nepal, Bhutan, Bangladesh, Sri Lanka, Maldives, and Myanmar. * Economic and Development Partnership: Connectivity projects, energy sharing, and trade support. * Security Cooperation: Counter-terrorism, maritime security, and defense training. * Respect for Sovereignty: Non-interference in internal affairs and promoting peaceful dialogue. * Humanitarian Support: Quick assistance during natural disasters and crises. 3. Major Components of the Policy * Connectivity Projects: * BBIN Motor Vehicle Agreement (Bangladesh–Bhutan–India–Nepal). * Kaladan Multi-Modal Transit Project (with Myanmar). * India–Nepal cross-border railway lines. * Energy and Power Cooperation: * Hydropower projects with Bhutan and Nepal. * Electricity, LNG, and petroleum supply to Bangladesh and Sri Lanka. * Trade and Economic Integration: * Bangladesh is India’s largest trading partner in South Asia. * Expansion of border haats (markets) with Bangladesh and Nepal. * Support through lines of credit to Sri Lanka, Maldives, and others. * Security and Defence: * Joint military exercises like Maitree, Surya Kiran, Mitra Shakti, and Sampriti. * Maritime surveillance in the Indian Ocean. * Support to Sri Lanka and Maldives for coastal security. 4. Recent Developments (2024–2025) * India’s humanitarian support to Sri Lanka during its economic crisis strengthened goodwill. * Maldives political tensions tested India’s “Neighbourhood First” approach. * Expanding cooperation with Bangladesh in digital governance and connectivity. * India’s involvement in Myanmar limited due to its internal conflict, but border security coordination continues. * Strengthened ties with Bhutan through hydropower and digital payment systems (UPI integration). 5. Challenges * China’s Growing Influence: Infrastructure investments in Pakistan, Sri Lanka, Nepal, and Maldives through the Belt and Road Initiative (BRI) challenge India’s strategic space. * Political Instability: Frequent government changes in neighbourhood countries impact bilateral policies. * Border Issues: Occasional tensions with Nepal and Bangladesh regarding demarcation. * Terrorism and Cross-Border Security Issues: Particularly from Pakistan. * Economic Competition: Smaller nations sometimes seek balance by engaging both India and China. 6. Way Forward * Strengthen regional connectivity through roads, railways, and digital links. * Deepen economic integration with free trade agreements and cross-border energy grids. * Promote people-to-people ties through education, tourism, and healthcare partnerships. * Enhance maritime cooperation in the Indian Ocean. * Counter China’s influence through sustainable, transparent, and people-centric development projects. 7. Conclusion India’s neighbourhood policy aims at building a peaceful, prosperous, and cooperative South Asia. A stable neighbourhood is essential for India’s growth and global aspirations. By promoting connectivity, development, and mutual trust, India seeks to lead the region toward shared progress and long-term stability.