Sept. 6, 2024
India’s Neighbourhood First Policy
Context:
As Prime Minister-elect Narendra Modi prepares to take oath for his third term, the focus is once again back on India's foreign policy and how it will take shape over the next five years.
About Neighborhood First Policy
India’s ‘Neighbourhood First policy’ guides its approach towards the management of relations with countries in its immediate neighbourhood, Afghahistan, Bangladesh, Nepal, Myanmar,Bhutan, Maldives, Sri Lanka and Pakistan. The policy officially came to being in 2008.
Significance of the Policy:
• Countering Chinese influence in the Indian Ocean region.
• Support in multilateral forums strengthens India's leadership role in representing the interests of the GlobalSouth at international forums.
• Ensuring territorial integrity and tackling separatist threats.
• Increasing maritime security to tackle transnational security challenges.
• Addressing energy security, particularly the import of oil and gas through sea routes.
• Bridging development deficits to reduce disparities.
• India's deep cultural and historical connections with its neighbours strengthen people-to-people ties, solidifying India's influence in the region through soft power diplomacy.
Challenges Associated with the Policy
• Geopolitical tensions like border disputes and political disagreements can complicate relationships.
• Difficulties in executing cross-border projects due to logistical and bureaucratic challenges.
• Economic differences: Different levels of economic development among neighboring countries can affect the balance and effectiveness of cooperation
Success / Major Initiatives:
➢ SAARC (South Asian Association for Regional Cooperation).
➢ BIMSTEC (Bay of Bengal Initiative for Multi-SectoralTechnical and Economic Cooperation).
➢ BBIN Initiative (Bangladesh, Bhutan, India, Nepal): Improving Road and Rail connectivity.
➢ Kaladan Multi-Modal Transit Transport Project: Connecting India with Myanmar and Asia.
➢ Chabahar Port: a port in Iran to improve connectivity with Afghanistan and Central Asia.
Bilateral Ties
Bangladesh:
• Export-import: $11,061 million-$1,845 million
• India and Bangladesh have deep historical ties rooted in India’s role in Bangladesh’s liberation.
• Today, they share a robust trade relationship, which amounted to $12,906 million in the 2023-24 financial year, with India exporting machinery and textile, while Bangladesh exports garments and fish.
Sri Lanka:
• Export-import: $4,118 million-$1,424 million
• Ties between the people of India and Sri Lanka can be traced back to ancient times.
• In 2023-24, their bilateral trade was valued at $5,542 million, with significant Indian exports of petroleum and automobiles.
Nepal:
• Export-import: $7,041 million-$830 million
• India and Nepal share an open-border relationship, reflecting their deep historical and cultural ties.
• In 2023-24, bilateral trade amounted to $7,871 million, dominated by Indian exports of petroleum products and machinery.
Maldives:
• Export-import: $892 million-$87 million
• Over the years, India and the Maldives have maintained close ties. Most notably, India helped prevent a coup in Maldives in 1988.
• The Indian Armed Forces continued to have a modest presence in the archipelago, until President Muizzu came in on an “India Out” platform.
Seychelles:
• Export-import: $76 million-$9 million
• India and Seychelles share a strategic relationship, particularly in maritime security and environmental cooperation.
• Located north of Madagascar, Seychelles is among the most strategically important archipelagos in the Indian Ocean.
Bhutan:
• Export-import: $964 million- $339 million
• India and Bhutan are, what one can call, all weather friends with significant economic and cultural exchanges.
• In 2023-24, bilateral trade was $1.3 billion, with India being a major partner in Bhutan’s hydroelectric power sector.
Mauritius:
• Export-import: $778 million-$74 million
• India and Mauritius enjoy close relations, underpinned by strong cultural and economic ties.
• Bilateral trade in 2023-24 was valued at $ 852 million, with key exports from Mauritius including textiles and sugar.