India’s Neighbourhood First policy seeks to strengthen relations with neighbouring countries through development assistance, trade, connectivity, energy cooperation and people-to-people ties. These partnerships can promote shared prosperity and regional stability, but their effectiveness depends on mutual trust, timely project implementation and respect for the sovereignty of partner countries.
Opportunities for strengthening development partnerships
- Regional economic integration: Better trade links and transport infrastructure can expand markets and reduce transaction costs. Example: India-Bangladesh connectivity initiatives facilitate cross-border movement of goods and passengers.
- Energy security and interdependence: Cross-border electricity trade can support clean-energy transitions and create mutual economic benefits. Example: India imports hydropower from Bhutan and Nepal and facilitates the transmission of electricity to Bangladesh.
- Development assistance: Grants, concessional credit and technical cooperation can address infrastructure and capacity-building needs. Example: India’s development projects in Bhutan include hydropower cooperation and infrastructure support.
- Regional stability: Economic interdependence and institutional dialogue can create incentives for peaceful relations and cooperation on shared challenges.
- Disaster management and humanitarian assistance: Geographic proximity enables faster emergency response and cooperation on climate risks. Example: India’s humanitarian assistance to Nepal after the 2015 earthquake demonstrated the importance of regional disaster cooperation.
- People-to-people relations: Educational exchanges, tourism, medical assistance and cultural links can strengthen long-term societal ties beyond government-to-government engagement.
Challenges in strengthening the Neighbourhood First approach
- Political and diplomatic mistrust: Domestic political changes and unresolved disputes can disrupt bilateral cooperation. Example: India-Pakistan relations remain constrained by terrorism and longstanding disputes.
- Asymmetry in economic power: India’s larger economic and strategic position can generate concerns about dependence and unequal benefits among smaller neighbours.
- External strategic competition: China’s infrastructure investments and strategic partnerships in South Asia complicate India’s regional engagement.
- Project implementation delays: Difficult terrain, financing constraints and bureaucratic hurdles can delay connectivity projects, reducing their developmental and diplomatic benefits.
- Domestic instability in neighbouring countries: Political crises and economic distress can disrupt cooperation and create humanitarian and security challenges.
- Weak regional institutions: Limited progress in SAARC and persistent bilateral tensions constrain region-wide trade and connectivity. Subregional initiatives such as BIMSTEC offer alternative avenues for cooperation.
Way forward
India should prioritise consultative, demand-driven and mutually beneficial partnerships, ensuring timely project delivery, transparent financing and local participation. Stronger cross-border infrastructure, energy-market integration, disaster-management cooperation and regular diplomatic dialogue can build durable interdependence. Respect for sovereignty and sensitivity towards the domestic priorities of neighbouring countries must remain central to implementation.
India’s Neighbourhood First approach can advance regional prosperity and stability when development cooperation is treated not merely as an instrument of strategic influence, but as a partnership based on mutual respect, shared gains and sustained trust.