Strengthening Ties - India’s Neighbourhood Policy and Emerging Challenges

India’s geopolitical standing is deeply influenced by its neighbors, making regional diplomacy a pivotal aspect of its foreign policy. Recognizing that a peaceful periphery is crucial for national growth, India has consistently emphasized strengthening ties with its neighbors. The “Neighbourhood First” policy encapsulates this vision, aiming to foster trust, enhance cooperation, and build a harmonious regional environment.

However, regional relations are complex, shaped by historical tensions, strategic rivalries, and external interventions. As India strives to assert its influence while balancing national interests, its neighborhood policy continues to evolve in response to changing dynamics.

This blog explores the framework of India’s neighborhood policy, its evolution, current relevance, and the challenges and prospects for the future. Designed for aspirants of competitive exams, this in-depth analysis equips readers with the knowledge to grasp this critical aspect of India’s foreign policy.

Understanding India’s Neighborhood Policy

1. Who Are India’s Neighbors?

India shares land and maritime boundaries with nine immediate neighbors: Afghanistan, Bangladesh, Bhutan, China, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka.
Additionally, India’s extended neighborhood includes: Nations in the Indian Ocean Region (IOR), ASEAN countries, Central Asia, and West Asia.

The relationships with these countries are informed by civilizational ties, shared cultural heritage, and strategic imperatives.

2. What Is India’s Neighborhood Policy?

India’s neighborhood policy is a structured approach to diplomacy aimed at:

• Building peaceful relations based on non-reciprocal cooperation (as per the Gujral Doctrine).
• Strengthening regional forums like SAARC, BIMSTEC, and BBIN.
• Promoting regional connectivity, economic growth, and development.
• Addressing common challenges like security threats, climate change, and resource sharing.

This policy is guided by principles such as:

• Samman (respect),
• Samvad (dialogue),
• Shanti (peace),
• Samriddhi (prosperity), and
• Sanskriti (culture).

These principles underscore the importance of trust-building and mutual respect in fostering lasting relationships.

Evolution of India’s Neighborhood Policy

India’s neighborhood strategy has undergone significant transformation since Independence. Each phase reflects India’s priorities and responses to global and regional events:

1. Early Years (1947–1960s): Idealism and Bilateralism

• India adopted an anti-colonial and anti-imperialistic stance, as demonstrated at the Asian Relations Conference of 1948.
• Treaties like the 1949 Bhutan Treaty and 1950 Nepal Treaty established bilateral frameworks for peace and cooperation.
• The Panchsheel Agreement (1954) with China showcased India’s commitment to peaceful coexistence.

2. Cold War Period (1960–1990s): Regional Assertion

• India asserted its regional dominance under the “Monroe Doctrine”, opposing external interference in South Asia.
• Landmark events included:
  • The liberation of Bangladesh (1971) and the signing of the Shimla Agreement (1972).
  • The integration of Sikkim (1975) into India.
• The SAARC (South Asian Association for Regional Cooperation) was established in 1985 to promote collective regional growth.

3. Post-Liberalization Era (1990–2000): A Shift to Pragmatism

• The Gujral Doctrine prioritized non-reciprocal concessions to build trust.
• Economic liberalization in 1991 paved the way for regional economic integration.

4. Contemporary Era (2000–Present): Strategic Balancing

• The Neighbourhood First Policy (NFP), introduced in 2008, emphasized holistic development through the 5S principles.
• India’s strategic outreach expanded to its extended neighborhood, focusing on:
  • Act East Policy with ASEAN and Indo-Pacific nations.
  • SAGAR Initiative for maritime security.
  • Connect Central Asia Policy to boost ties with Central Asia.

Relevance of India’s Neighborhood Policy Today

1. Geostrategic Importance

• South Asia, home to nearly 1.9 billion people, serves as India’s gateway to global markets.
• A peaceful neighborhood reinforces India’s ambition to become a regional leader and a global superpower.

2. Economic Opportunities

• Hydropower Projects: Collaborations with Nepal and Bhutan on hydropower provide clean energy solutions.
• Connectivity Corridors: Initiatives like the India-Bangladesh Protocol Routes enhance trade and economic integration.
• Tourism: Religious tourism with Nepal and Bangladesh strengthens people-to-people ties.

3. Security Imperatives

• Countering Cross-Border Terrorism: Ensuring cooperation with Myanmar and Bangladesh to tackle insurgencies in India’s Northeast.
• Maritime Security: Partnerships with Sri Lanka and Maldives to secure the Indian Ocean Region.

4. Countering China’s Influence

• China’s Belt and Road Initiative (BRI) has deepened its presence in India’s neighborhood, posing strategic challenges.
• India’s alternative frameworks, like the IMEC (India-Middle East-Europe Corridor), aim to reduce regional dependence on Chinese projects.

Challenges in India’s Neighborhood Policy

India’s relationship with its neighbors is a blend of shared history, cultural ties, and strategic ambitions. However, various challenges have complicated the implementation of its Neighborhood First Policy, creating hurdles in fostering lasting regional partnerships. Let’s delve deeper into these challenges, providing historical context and examples for clarity.

1. Historical Disputes and Mistrust

a) Long-standing Tensions with Pakistan Over Kashmir and Terrorism

• Historical Context:
  • The partition of 1947 created deep-seated animosities between India and Pakistan, with the Kashmir issue becoming the focal point of bilateral tensions. Both nations claim the region in full but control parts of it.
  • The conflict has led to wars (1947, 1965, 1971, and Kargil War in 1999) and skirmishes, making Kashmir one of the most militarized zones globally.
• Recent Developments:
  • Pakistan continues to support cross-border terrorism, providing backing to groups like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM), responsible for attacks such as the 2001 Indian Parliament attack and the 2019 Pulwama bombing.
  • India’s abrogation of Article 370 in 2019, which granted Jammu and Kashmir special status, intensified hostilities, with Pakistan downgrading diplomatic ties.

b) Border Skirmishes with China Along the LAC

• Historical Context:

  • The India-China War of 1962 left scars on bilateral relations, as China occupied Aksai Chin, a part of Ladakh claimed by India.
  • The Line of Actual Control (LAC), which separates Indian and Chinese-controlled territory, remains undefined, leading to frequent border disputes.

• Recent Incidents:

  • The Galwan Valley clash (2020), where 20 Indian soldiers and an undisclosed number of Chinese soldiers died, marked the first violent conflict in decades.
  • Continued Chinese incursions into areas like Arunachal Pradesh and Ladakh underscore the challenges in maintaining peace.

• Impact:

  • Mistrust stemming from these disputes hinders regional cooperation, particularly in multilateral forums like BRICS and SCO, where both nations participate.

2. External Interventions

a) China’s Growing Influence Through the Belt and Road Initiative (BRI)

• Background of BRI:

  • Launched in 2013, China’s BRI aims to create a vast infrastructure network connecting Asia with Europe and Africa, investing heavily in South Asia.

• Country-wise Impacts:

  • Sri Lanka: The construction of the Hambantota Port under Chinese loans led to a 99-year lease to China after Sri Lanka failed to repay debts, increasing Beijing’s strategic foothold in the Indian Ocean.
  • Nepal: China’s investments in infrastructure, such as roads and railways, are perceived as attempts to counter India’s influence.
  • Maldives: Massive Chinese investments in airports and other projects have raised concerns about debt dependency.

b) Strategic Implications for India:

• China’s financial diplomacy threatens India’s traditional dominance in the region, forcing neighbors to play the “China card” against India during bilateral disputes.
• Examples include Nepal leveraging its ties with China during the 2015 blockade and Sri Lanka granting China greater access to strategic locations.

3. Internal Policy Constraints

a) Delayed Implementation of Development Projects

• India’s Line of Credit (LoC) projects in neighboring countries are often delayed due to bureaucratic inefficiencies and poor execution.
• Example: The Kaladan Multi-Modal Transit Transport Project in Myanmar has faced years of delays, reducing India’s credibility as a reliable development partner.

b) Teesta Water Sharing Agreement

• This unresolved issue between India and Bangladesh highlights domestic political interference in foreign policy.
• The agreement, crucial for Bangladesh’s agricultural economy, has been stalled due to opposition from West Bengal, reflecting how state politics affect national diplomacy.

4. Regional Instability

a) Afghanistan’s Crisis

• Following the Taliban’s return to power in 2021, Afghanistan has become a hotspot for instability, threatening South Asia’s security.
• India faces challenges in ensuring that Afghanistan does not become a haven for extremist groups targeting the region.

b) Sri Lanka’s Economic Crisis

• Sri Lanka’s 2022 financial collapse disrupted trade and strained regional ties. India provided humanitarian aid, but the crisis showcased how economic instability in neighbors can directly affect India’s interests.

Strengthening the Neighborhood Policy: The Way Forward

To overcome these challenges and enhance its influence, India must adopt a holistic and proactive approach to its neighborhood policy.

1. Revive Regional Forums

• Strengthen SAARC by addressing its inefficiencies and focusing on economic and security cooperation.
• Promote BIMSTEC as a viable alternative to SAARC, emphasizing shared interests in the Bay of Bengal region.

2. Invest in Connectivity

• Road, Rail, and Maritime Projects: Expedite infrastructure projects like the BBIN Motor Vehicle Agreement to enhance regional trade.
• Digital Connectivity: Promote cross-border digital platforms to improve access to services like healthcare and education.

3. Collaborate on Climate Action

• Partner with neighbors to tackle common issues like:
  • Flood management: Joint river basin management with Nepal and Bangladesh.
  • Sustainable agriculture: Collaborating on climate-resilient farming practices.

4. Counter External Influences

• Offer low-cost alternatives to China’s BRI projects, emphasizing transparency and mutual benefits.
• Strengthen maritime security through partnerships with island nations like Maldives and Mauritius.

5. Leverage Cultural Diplomacy

• Utilize shared heritage, like Buddhism diplomacy, to enhance ties with countries like Sri Lanka and Myanmar.
• Expand Bollywood’s reach as a soft power tool to promote India’s cultural appeal.

6. Foster Mutual Trust

• Address neighbors’ concerns through non-reciprocal initiatives under the Gujral Doctrine.
• Enhance cooperation in areas like education, healthcare, and disaster management to build goodwill.

Conclusion

India’s neighborhood policy reflects its commitment to fostering regional harmony and achieving shared prosperity. While challenges persist, India’s strategic reforms, proactive diplomacy, and cultural outreach have the potential to transform South Asia into a thriving and interconnected region.

By addressing historical grievances, countering external influences, and building robust partnerships, India can assert its role as a regional leader while advancing its vision of global influence. For aspirants preparing for competitive exams, understanding the intricacies of India’s neighborhood policy offers a unique perspective on the nation’s evolving diplomacy.