India’s “Neighborhood First” policy, initiated by Prime Minister Narendra Modi’s government in 2014, represents a strategic shift in India’s foreign policy, emphasizing enhanced bilateral relations with neighboring countries. The policy aims to promote regional stability, economic integration, and cooperation in various domains, including security, trade, and culture. However, this policy has faced numerous challenges due to the complex and often turbulent relationships India has with its neighbors, including Pakistan, China, Nepal, Sri Lanka, Bangladesh, Bhutan, and Myanmar.

This analysis explores the testing times for India’s “Neighborhood First” policy, examining the geopolitical, economic, and diplomatic challenges that have emerged over the years. It also assesses the policy’s effectiveness and the way forward for India in managing its neighborhood relationships.

1. Overview of the “Neighborhood First” Policy

The “Neighborhood First” policy was introduced with the intent of fostering strong ties with neighboring countries, recognizing that a stable and peaceful neighborhood is crucial for India’s security and economic development. The policy encompasses various initiatives:

• Diplomatic Engagement: India has sought to enhance diplomatic ties through high-level visits, bilateral agreements, and multilateral forums such as SAARC (South Asian Association for Regional Cooperation) and BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation).
• Economic Cooperation: India has offered economic aid, trade agreements, and infrastructure projects to its neighbors, aiming to boost regional economic integration.
• Security Cooperation: India has worked on strengthening security ties, particularly in counter-terrorism, maritime security, and disaster management.
• Cultural and People-to-People Exchanges: India has promoted cultural exchanges and visa-free travel arrangements to strengthen people-to-people ties.

Despite these efforts, the policy has encountered several challenges that have tested India’s diplomatic acumen and strategic patience.

2. Geopolitical Challenges

1. China’s Influence in the Region: China’s growing influence in South Asia, particularly through its Belt and Road Initiative (BRI), poses a significant challenge to India’s “Neighborhood First” policy. Countries like Pakistan, Sri Lanka, Nepal, and the Maldives have increasingly engaged with China, often at the expense of their relations with India. For instance, China’s investments in Pakistan’s Gwadar Port and Sri Lanka’s Hambantota Port have raised concerns about encirclement and the potential for military use.

2. Pakistan and the Kashmir Issue:
   India’s relationship with Pakistan remains one of the most contentious in the region, primarily due to the long-standing Kashmir conflict. The abrogation of Article 370 in 2019, which granted special status to Jammu and Kashmir, further strained relations, leading to heightened tensions and a near-breakdown of diplomatic ties. Cross-border terrorism and ceasefire violations continue to pose security threats, complicating India’s efforts to engage constructively with Pakistan.

3. Nepal and Border Disputes:
   Nepal, traditionally considered a close ally of India, has seen a strain in relations due to territorial disputes, particularly over the Kalapani-Lipulekh-Limpiyadhura region. Nepal’s new political map, issued in 2020, exacerbated tensions, leading to a deterioration in bilateral relations. China’s increasing influence in Nepal has also contributed to this drift.

4. Myanmar’s Political Instability: The military coup in Myanmar in February 2021 has created a complex situation for India, which shares a long border with Myanmar. The political instability in Myanmar has led to an influx of refugees into India’s northeastern states, creating security and humanitarian challenges. Additionally, China’s influence in Myanmar complicates India’s strategic interests in the region.

3. Economic Challenges

1. Trade Imbalances and Economic Dependencies: While India has signed various trade agreements with its neighbors, there remain significant trade imbalances, particularly with countries like Bangladesh and Nepal. These imbalances have led to growing discontent and a perception that India benefits more from these relationships than its neighbors. For instance, Bangladesh, despite being one of India’s largest trading partners in South Asia, has often raised concerns about non-tariff barriers and delays in the implementation of agreements.

2. Infrastructure and Connectivity Projects: India’s infrastructure and connectivity projects in the region, such as the India-Myanmar-Thailand Trilateral Highway and the BBIN (Bangladesh, Bhutan, India, Nepal) Motor Vehicles Agreement, have faced delays and logistical challenges. These delays undermine India’s credibility and allow China to fill the gap with its more efficient execution of infrastructure projects under the BRI.

3. Aid Diplomacy: India’s aid diplomacy has been an essential tool in its “Neighborhood First” policy. However, the scale of Chinese aid and investments in the region far surpasses India’s capabilities. This disparity has led to a perception that India cannot match China’s economic prowess, which in turn affects its influence in the region. For example, Sri Lanka’s growing dependence on Chinese loans and investments has led to situations like the leasing of the Hambantota Port to a Chinese company, sidelining India.

4. Diplomatic Challenges

1. Balancing Relations with Multiple Neighbors:
   India faces the challenge of balancing its relations with multiple neighbors who often have conflicting interests. For instance, India’s close ties with Afghanistan have historically irked Pakistan, while its relationship with Bhutan has at times led to tensions with China. Similarly, India’s support for democratic movements in countries like Nepal and Myanmar has occasionally put it at odds with the ruling regimes.

2. Managing Regional Organizations: India’s efforts to revitalize regional organizations like SAARC have been hampered by the lack of consensus among member states, particularly due to the India-Pakistan rivalry. SAARC’s ineffectiveness has led India to focus more on BIMSTEC, which includes countries from South and Southeast Asia but excludes Pakistan. However, BIMSTEC has its own set of challenges, including the varying priorities of its member states.

3. Soft Power Diplomacy:
   India’s soft power, particularly through cultural diplomacy, has been a key component of its “Neighborhood First” policy. However, the rise of social media and the spread of misinformation have complicated India’s soft power efforts. For example, the spread of anti-India sentiment in Nepal and Sri Lanka, often fueled by social media, has strained people-to-people ties and created diplomatic headaches.

5. Successes and Opportunities

Despite the challenges, India’s “Neighborhood First” policy has seen several successes and continues to offer opportunities for regional cooperation.

1. Strengthening Ties with Bangladesh: India’s relationship with Bangladesh has been one of the most successful examples of the “Neighborhood First” policy. The resolution of the long-standing land boundary dispute through the 2015 Land Boundary Agreement and the enhancement of trade and connectivity have strengthened bilateral ties. Bangladesh has emerged as one of India’s most reliable partners in the region, with cooperation extending to areas such as counter-terrorism, energy, and cultural exchanges.

2. Strategic Engagement with Bhutan: Bhutan remains one of India’s closest allies in the region, with deep historical and cultural ties. India’s support for Bhutan’s economic development, including assistance in the hydropower sector, has solidified the relationship. The successful resolution of the Doklam standoff with China in 2017, where India intervened in support of Bhutan, is a testament to the strength of this partnership.

3. Opportunities in Maritime Cooperation: India’s strategic location in the Indian Ocean offers significant opportunities for maritime cooperation with its neighbors. Initiatives like the Indian Ocean Rim Association (IORA) and the Indo-Pacific Oceans Initiative (IPOI) provide platforms for India to engage with regional partners on issues such as maritime security, blue economy, and disaster management. India’s outreach to the Maldives and Sri Lanka in the maritime domain has been particularly noteworthy, with joint naval exercises and cooperation on anti-piracy efforts.

4. Emerging Role in Afghanistan: Although India’s relationship with Afghanistan is complicated by the presence of the Taliban, India’s historical ties and developmental assistance have made it a key player in the country. India’s investments in infrastructure, education, and healthcare have been well-received by the Afghan people. The Chabahar Port in Iran, which provides India with a strategic alternative to access Afghanistan bypassing Pakistan, is another critical aspect of India’s engagement in the region.

Conclusion

India’s “Neighborhood First” policy reflects a pragmatic approach to its foreign relations, recognizing the importance of a stable and cooperative neighborhood for its security and economic development. However, the policy faces significant challenges due to the complex geopolitical, economic, and diplomatic dynamics in the region. China’s growing influence, territorial disputes, trade imbalances, and the difficulty of managing diverse regional interests have tested India’s ability to maintain strong and stable relations with its neighbors.

Despite these challenges, the “Neighborhood First” policy has also seen notable successes, particularly in strengthening ties with Bangladesh and Bhutan, and in leveraging India’s maritime advantage. Moving forward, India must continue to adapt its approach, focusing on building trust, enhancing economic cooperation, and promoting regional stability. This will require not only strategic diplomacy but also a commitment to addressing the concerns of its neighbors and fostering a spirit of mutual respect and cooperation.

In the face of testing times, India’s “Neighborhood First” policy remains a crucial element of its foreign policy strategy. By learning from past experiences and refining its approach, India can continue to play a leading role in shaping the future of South Asia, ensuring that its neighborhood is one of peace, stability, and prosperity.