India’s geographical proximity, historical connections and economic linkages make neighbourhood relations central to its foreign policy. However, unresolved disputes, domestic political developments, security threats and external strategic competition complicate regional engagement. Stable relations therefore require a combination of diplomatic sensitivity, security cooperation and mutually beneficial economic partnerships.
Major challenges in maintaining stable neighbourhood relations
- Historical and territorial disputes: Unresolved boundary issues and historical grievances periodically strain bilateral relations.
Example: The India-Pakistan dispute over Jammu and Kashmir and the India-China boundary dispute. - Cross-border terrorism and security threats: Terrorist infiltration, arms smuggling and organised crime undermine mutual trust and regional stability.
Example: Cross-border terrorism remains a major challenge in India-Pakistan relations. - Political instability in neighbouring countries: Changes in governments, domestic unrest and competing political interests can disrupt bilateral agreements and ongoing projects.
- Asymmetry in economic and political power: India’s larger size and influence can create concerns among smaller neighbours regarding sovereignty, dependence and unequal bargaining power.
- China’s growing regional influence: Infrastructure investments, strategic partnerships and expanding economic presence provide neighbouring countries with alternatives to Indian engagement, creating geopolitical competition.
- Connectivity and trade barriers: Inadequate infrastructure, procedural bottlenecks and protectionist policies restrict regional economic integration.
Example: Limited progress in regional cooperation under SAARC has constrained South Asian economic integration.
Measures to strengthen neighbourhood relations
- Respect for sovereignty and political sensitivities: India should follow a consultative approach, avoid perceptions of interference and engage with governments across political transitions.
- Resolve bilateral disputes through dialogue: Institutionalised negotiations on border disputes, water sharing and maritime issues can prevent disagreements from escalating.
- Strengthen economic interdependence: Expand trade facilitation, cross-border infrastructure and energy cooperation through initiatives such as BBIN and BIMSTEC.
- Ensure timely project implementation: Strengthen monitoring of Lines of Credit and development projects through joint project-monitoring mechanisms and transparent timelines.
- Address security concerns collectively: Enhance intelligence-sharing, coordinated border management and maritime security cooperation to tackle terrorism, trafficking and illegal migration.
- Adopt a neighbourhood-sensitive foreign policy: Consider the domestic political, cultural and economic concerns of neighbouring countries while framing bilateral initiatives.
- Strengthen people-to-people relations: Promote educational exchanges, medical tourism, cultural cooperation and easier movement of citizens to build long-term mutual trust.
Conclusion
India’s neighbourhood policy must move beyond a predominantly security-driven approach towards cooperative regionalism based on mutual trust, economic interdependence and respect for sovereignty. As the largest country in South Asia, India’s ability to accommodate the concerns of smaller neighbours while protecting its national interests will be crucial for regional stability and prosperity.