# Assessing India’s ‘Neighbourhood First’ Policy and Its Implications for South Asian Stability

 

# Assessing India’s ‘Neighbourhood First’ Policy and Its Implications for South Asian Stability  

## Introduction: A Regional Imperative  

India’s ‘Neighbourhood First’ policy (NFP), formally conceptualised in 2008 and revitalised under Prime Minister Narendra Modi since 2014, prioritises diplomatic, economic, and security engagement with South Asian neighbours. Rooted in the understanding that regional stability is integral to India’s global aspirations, the policy seeks to counterbalance external influences, enhance connectivity, and address shared challenges such as terrorism and underdevelopment. This review evaluates the NFP’s strategic objectives, achievements, and limitations, while analysing its implications for South Asian stability.  

## Historical Evolution: From Idealism to Pragmatism  

The NFP’s foundations trace back to India’s post-independence foreign policy, which initially emphasised idealism under Jawaharlal Nehru. His vision of pan-Asian solidarity, however, clashed with realities like the 1962 Sino-Indian War, exposing vulnerabilities in non-aligned idealism. Subsequent leaders, including Indira Gandhi, adopted a realist approach, intervening in the 1971 Bangladesh Liberation War to secure strategic interests. The Gujral Doctrine (1996–1998) later emphasised non-reciprocity and goodwill, aiming to mend ties with smaller neighbours. Modi’s NFP represents a synthesis of these approaches, combining economic diplomacy, infrastructure investments, and proactive engagement to foster regional interdependence.  

## Strategic Objectives: Security, Connectivity, and Countering China  

A core pillar of the NFP is mitigating security threats, particularly cross-border terrorism and illegal migration. The policy advocates enhanced border infrastructure, intelligence-sharing, and multilateral counter-terrorism platforms, reflecting concerns over Pakistan-based militant groups and porous borders with Bangladesh and Myanmar. Concurrently, the NFP aims to curb China’s expanding influence in South Asia, evident in infrastructure projects under the Belt and Road Initiative (BRI). For instance, Chinese investments in Sri Lanka’s Hambantota Port and Nepal’s hydropower sector have prompted India to accelerate initiatives like the India-Myanmar-Thailand Trilateral Highway and the International North-South Transport Corridor.  

## Economic Integration: Development Assistance and Connectivity  

India has emerged as the largest provider of development assistance in South Asia, with Lines of Credit (LoC) to neighbours surging from $3.3 billion in 2014 to $14.7 billion in 2020. Projects such as Bangladesh’s rail connectivity upgrades and Bhutan’s hydropower dams underscore India’s focus on economic interdependence. The Bangladesh-Bhutan-India-Nepal (BBIN) initiative, despite Pakistan’s exclusion, exemplifies efforts to enhance regional trade and energy-sharing. However, delays in project implementation and bureaucratic inefficiencies have occasionally eroded trust, as seen in Nepal’s frustration over stalled infrastructure ventures.  

## Security Challenges: Terrorism and Border Disputes  

Persistent security threats undermine the NFP’s stability goals. Pakistan’s alleged support for cross-border terrorism remains a critical concern, exemplified by the 2019 Pulwama attack and India’s retaliatory Balakot airstrike. Meanwhile, unresolved border disputes with China (e.g., Doklam and Galwan Valley) and Nepal (Kalapani) exacerbate regional tensions. The NFP’s emphasis on joint military exercises, such as those with Maldives and Sri Lanka, seeks to bolster maritime security in the Indian Ocean, countering piracy and Chinese naval encroachment.  

## Soft Power and Cultural Diplomacy: Strengthening People-to-People Ties  

India leverages historical and cultural linkages to foster goodwill. Initiatives like medical visas for Bangladeshis, scholarships for Afghan students, and religious tourism circuits with Nepal enhance people-to-people connectivity. The ‘SAGAR’ (Security and Growth for All in the Region) vision further emphasises maritime cooperation and disaster response, positioning India as a net security provider. However, domestic policies like the 2019 Citizenship Amendment Act, perceived as anti-Muslim, have strained relations with Bangladesh and complicated diplomatic outreach.  

## Case Study: Bhutan-India Relations – A Model for Success  

Bhutan epitomises the NFP’s potential. Hydropower collaborations, such as the 1,020 MW Tala Project, provide Bhutan with revenue and India with clean energy, while defence treaties ensure mutual security. Modi’s 2014 visit, the first by an Indian PM in decades, reinforced ties through digital infrastructure grants and educational exchanges. This symbiotic relationship, built on respect for sovereignty and shared development goals, contrasts sharply with India’s contentious dynamics with Pakistan or Nepal.  

## Challenges: Domestic Politics and China’s Shadow  

The NFP faces significant headwinds. Domestic political pressures, such as West Bengal’s opposition to the Teesta River agreement with Bangladesh, often stall bilateral progress. Meanwhile, China’s economic clout complicates India’s outreach; Sri Lanka and Maldives have periodically pivoted towards Beijing for loans and infrastructure, despite India’s concessions like replacing military personnel with technical staff in Maldives. Additionally, India’s perceived ‘big brother’ attitude lingers, with smaller neighbours wary of sovereignty compromises.  

## Recommendations: Enhancing Efficacy and Trust  

To strengthen the NFP, India must address implementation delays in LoC projects through robust monitoring mechanisms. Expanding subregional frameworks like BIMSTEC, which excludes Pakistan, could sidestep SAARC’s stagnation. Engaging with non-friendly regimes pragmatically—such as the Maldives’ pro-China President Muze—while safeguarding core interests, would mitigate alienation. Finally, integrating climate resilience into development projects could address shared vulnerabilities, fostering collective action.  

## Conclusion: A Mixed Legacy with Uncertain Horizons  

India’s NFP has bolstered regional connectivity and countered Chinese influence in pockets, yet structural challenges persist. While initiatives like BBIN and hydropower partnerships with Bhutan demonstrate success, unresolved territorial disputes, bureaucratic inefficiencies, and China’s strategic inroads limit transformative outcomes. For South Asian stability to endure, India must balance pragmatic engagement with empathetic diplomacy, ensuring neighbours perceive mutual benefits rather than hegemony. As the region navigates geopolitical rivalries and climate crises, the NFP’s evolution will remain pivotal to India’s aspirations as a global power and regional stabiliser.