Re-evaluating India’s ‘Neighbourhood First’ Policy: From Strategic Vision to Operational Realities
The completion of a decade of India's 'Neighbourhood First' policy is less a cause for celebration and more an opportunity for forensic introspection. While the rhetoric of regional leadership persists, the policy's operational inadequacies and evolving external pressures risk undermining India's primacy in South Asia. At the heart of these challenges lies the failure to align political ambition with systemic execution, creating a vacuum increasingly occupied by China's Belt and Road Initiative (BRI).
Institutional Landscape: Promise and Premise
Launched in 2014 as a cornerstone of Indian foreign policy, the Neighbourhood First policy aimed at fostering stability, connectivity, and shared prosperity with India's immediate neighbors—Afghanistan, Bangladesh, Bhutan, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka. Articulated under constitutional principles of mutual coexistence and regional integration, its implementation has often rested within the purview of the Ministry of External Affairs and assorted frameworks such as the South Asia Subregional Economic Cooperation (SASEC).
Key achievements include the 2024 tripartite agreement enabling Bangladesh to import hydropower from Nepal via Indian grids and the humanitarian assistance package during Sri Lanka's 2022 economic crisis. Moreover, Vaccine Maitri underscored India's soft power during the pandemic, delivering COVID-19 assistance to smaller neighbors even before securing domestic immunization coverage. Yet, beneath these milestones lies an uneven record plagued by delays, regional distrust, and geopolitical competition.
The Argument: Structural Fault Lines
1. Trust Deficit: The 2015 Nepal blockade serves as a vivid embodiment of how India's perceived “interventionism” engenders resentment. NSSO data from 2023 highlights increasing anti-India rhetoric across Nepal and Bangladesh, stemming from India's unilateral approach to contentious issues. The Citizenship Amendment Act (CAA) and NRC narratives further exacerbated the trust deficit, prompting diplomatic fallout with Bangladesh.
2. Competition vs. Cooperation: Progress on integration suffers a glaring juxtaposition against competing Chinese infrastructure diplomacy. While India has extended Lines of Credit worth $15 billion, implementation delays such as the multi-year stagnation of the Kaladan Project place it at odds with China's rapid fulfillment under BRI agreements. For instance, China's bid for the Teesta River Management Project in Bangladesh challenges Indian interests, underscoring the necessity for faster execution mechanisms.
3. Regional Perception: Movements such as the “India Out” campaign in Maldives under President Muizzu illustrate growing public dissatisfaction with India's perceived dominance. The reliance on individual leaders like Sheikh Hasina has backfired as regime changes (e.g., Bangladesh’s 2026 BNP election victory) spark periods of “strategic repair.” Recent protests among youth electorates in Sri Lanka further attest to the alienation of Gen Z constituencies who demand people-centric diplomacy over palace-driven arrangements.
4. Suboptimal Project Delivery: Bureaucratic inertia frequently undermines India's infrastructure commitments. Kaladan aside, delays in operationalizing key agreements—such as under SASEC's connectivity program—contrast sharply with the streamlined execution processes of China-led projects, eroding the credibility of Indian promises.
Counter-Narrative: The Policy Is Not A Failure
The strongest defense of the Neighbourhood First approach hinges on its asymmetric successes. India’s responsiveness during humanitarian crises—be it the Nepal earthquake in 2015 or Sri Lanka’s economic turmoil in 2022—has positioned New Delhi as a reliable first responder. Moreover, the integration of ports like Chattogram optimizes logistics costs for India's northeastern states, creating economic synergies.
Proponents argue that setbacks stem less from policy design and more from volatile regional dynamics, including Pakistan's recurrent state-sponsored terrorism and the broader impact of China's predatory economic strategies. They contend that India's early-stage institutional investments, such as exporting the India Stack (UPI, ONDC) to neighbors, can translate into substantive regional digital economies in the long term.
International Perspective: Learning from China’s Economic Statecraft
China’s execution under the BRI provides a pointed contrast. By front-loading infrastructure investments and simplifying delivery mechanisms, Beijing showcases the strategic importance of being an “economic enabler” rather than merely a donor. India, despite its focus on Lines of Credit, fails to match China’s speed or project scale. For example, while India has been negotiating logistics corridors for over a decade, China completes corridors like the Gwadar-Kashgar route in less than half that time.
What India calls “cooperative federalism” in foreign policy increasingly appears fragmented as compared to Beijing’s centralized decision-making. India must note how China harmonizes domestic priorities with regional imperatives without letting one undermine the other.
Assessment: The Path to ‘Neighbourhood First 2.0’
India’s regional primacy cannot rely solely on historical goodwill or soft power precedents; it demands operational efficiency and systemic recalibration of priorities. First, legislative enhancements—such as redefining the operational timelines under the Foreign Contribution (Regulations) Act—could reduce bureaucratic delays in project execution. Second, institutionalizing partnerships beyond regime-specific allegiances is vital for long-term stability, ensuring bilateral ties remain robust across electoral cycles.
Finally, a pivot towards inclusive diplomacy, emphasizing civil society and youth engagement over palace-centric negotiations, could harness demographic dividends and counter rising anti-India sentiments. ‘Neighbourhood First 2.0’ must reimagine itself not as a policy of proximity but as one of interdependence.
Prelims Practice Questions
Practice Questions for UPSC
Prelims Practice Questions
- Statement 1: The policy was launched in 2014 as a cornerstone of Indian foreign policy.
- Statement 2: The main focus of the policy is solely on military cooperation with neighbors.
- Statement 3: The policy aims to enhance connectivity and shared prosperity.
Which of the above statements is/are correct?
- Statement 1: Bureaucratic inertia contributes to delays in project delivery.
- Statement 2: There is no regional distrust towards India.
- Statement 3: India extends Lines of Credit worth $15 billion to its neighbors.
Which of the above statements is/are correct?
Frequently Asked Questions
What are the key challenges faced by India's Neighbourhood First policy?
The key challenges include a significant trust deficit in neighboring countries due to perceived interventionism, notably illustrated by the 2015 Nepal blockade. Additionally, India's slow bureaucratic processes in infrastructure project delivery contrast sharply with China's rapid execution, leading to increased competition and the erosion of India's standing in South Asia.
How did the 'Neighbourhood First' policy perform during humanitarian crises?
The policy demonstrated effectiveness during humanitarian crises, with India providing timely support during events like the Nepal earthquake in 2015 and Sri Lanka's economic crisis in 2022. These responses have bolstered India's image as a reliable partner, highlighting the operational successes despite the broader inconsistencies in policy execution.
What role does China's Belt and Road Initiative play in the context of India's Neighbourhood First policy?
China's Belt and Road Initiative (BRI) poses a significant challenge to India by swiftly fulfilling infrastructure needs in the region, thus increasing China's influence. This has prompted concerns that India's own infrastructure projects, plagued by delays and bureaucracy, may fall behind in comparison, undermining India's credibility in its immediate neighborhood.
What is the impact of regional perception on India's foreign policy implementation?
Regional perception significantly affects India's foreign policy, as seen in the 'India Out' campaign in the Maldives and rising anti-India sentiment in countries like Nepal and Bangladesh. These sentiments often stem from India's unilateral decisions on contentious issues, leading to a backlash that complicates diplomatic relations.
What lessons can India learn from China's approach to economic statecraft?
India can learn from China's emphasis on being an economic enabler, which includes front-loading infrastructure investments and simplifying project delivery. By adopting similar strategies, India may enhance its effectiveness in regional partnerships and improve its standing against competing influences, especially those of China in South Asia.
Source: LearnPro Editorial | International Relations | Published: 13 February 2026 | Last updated: 3 March 2026
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