India’s Neighbourhood First Policy (NFP)

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.

Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted

India’s Neighbourhood First Policy (NFP)

Got a question? We're here to help!

Our dedicated Student Support team is ready to assist you and guide you every step of the way.
Reach out to us, and let’s tackle your queries together!

Copyright © 2026 USARAMBHA EDUCATION (UnderStand UPSC). All Rights Reserved.

UPSC Mains 2026 Crossover - Download Free PDF
0
Would love your thoughts, please comment.x
()
x