Neighbourhood First Policy

• The policy was conceptualised in 2008 and became a core pillar of foreign policy after 2014.
• It guides India’s engagement with its immediate neighbours for stability, connectivity and regional prosperity.
• Countries covered: Afghanistan, Bangladesh, Bhutan, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka.
• Key aim: Strengthen physical, economic, energy, digital and people-to-people connectivity while expanding trade and regional interdependence.
• Guiding principles: Samman (respect), Samvad (dialogue), Shanti (peace), Samriddhi (prosperity) and Sanskriti (culture). The engagement is consultative, non-reciprocal where needed, outcome-oriented and holistic.

Major Pillars and Initiatives of NFP

Economic and Connectivity Cooperation

• Improved cross-border trade and transport to reduce logistics cost and increase interdependence.
• Bangladesh example: Mongla port access and rail transit in 2024 significantly reduced travel time for Northeast India.
• Nepal example: Expansion of cross-border rail links and facilitation of transit trade.

High-Level Political Engagement

• Frequent visits by leaders to rebuild trust and strengthen diplomatic channels.
• Nepal example: Prime Minister’s 2014 visit after a gap of 17 years revitalised relations.
• Afghanistan example: Projects like Zaranj–Delaram Road and Salma Dam strengthened goodwill before regime change.

Development and Infrastructure Assistance

• India consistently supports neighbours during crises and invests in long-term development.
• Maldives example: Greater Malé Connectivity Project, Hanimaadhoo Airport, Gulhifalhu Port.
• Sri Lanka example: USD 4 billion assistance during the 2022 economic crisis.

Energy Cooperation and Power Markets

• Cross-border power trade, especially hydropower, enhances regional energy security.
• Bangladesh example: Tripartite 2024 agreement enabling Bangladesh to import 40 MW power from Nepal via India.

Security, Disaster Relief and Humanitarian Support

• India regularly acts as a first responder during disasters.
• Vaccine Maitri example: Maldives and Bhutan were first recipients.
• Sri Lanka example: Food, fuel and credit support during their economic crisis.

Geopolitical Balancing and Strategic Interests

• The NFP helps counter external influences, especially China’s BRI and debt-driven projects.
• Maldives example: Currency swaps and steady financial support to reduce debt dependency on China.
• Sri Lanka and Nepal examples: Engagement to offset BRI-linked strategic leverage.

Key Challenges in India’s Neighbourhood

Internal Instability in Neighbouring Countries

• Political upheavals and economic crises often spill over into India’s security and economic environment.

Perceptions of Interventionism

• India is sometimes seen as overbearing or interfering.
• Nepal example: The 2015 blockade was viewed as coercive, increasing anti-India sentiments.

Project Implementation Delays

• Lengthy timelines lower trust and create political friction.
• Maldives example: Delays in the Greater Malé Connectivity Project.

Unresolved Bilateral Disputes

• Long-pending issues weaken goodwill and create mistrust.
• Examples: Teesta water sharing with Bangladesh, fishing disputes with Sri Lanka, Kalapani boundary issue with Nepal.

Coordination Challenges Within India

• Lack of alignment between central and state policies affects transit and trade.
• Example: Suvidha fee by West Bengal affecting Bhutan–Bangladesh cargo movement.

China’s Expanding Influence

• China’s economic and strategic footprint continues to grow.
• Examples: Hambantota Port in Sri Lanka, BRI projects in Nepal and Bangladesh, and rising influence in Maldives.

Way Forward

• Strengthen diplomatic presence with sensitive engagement that respects domestic political realities in neighbouring democracies.
• Resolve core bilateral issues such as Teesta water sharing, Kalapani boundary differences and fishing rights with Sri Lanka.
• Improve speed, transparency and execution of infrastructure projects to reinforce India’s reputation as a dependable partner.
• Balance economic assistance to ensure support without creating dependency, combined with monitoring mechanisms for timely delivery.
• Promote democratic stability by supporting electoral institutions and governance reforms in crisis-prone neighbours.
• Counter China through competitive financing, better connectivity, private-sector partnerships and by offering strategic alternatives without forcing choices.
• Adapt engagement to shifting political landscapes, especially in Maldives, Sri Lanka and Nepal, with flexible, scenario-based diplomacy.