India’s neighbourhood has become a test of its diplomatic maturity. A decade after Prime Minister (PM) Narendra Modi unveiled the Neighbourhood First policy in 2014, India’s economic and strategic stature has grown, but its ability to convert geographical proximity and historical ties into enduring goodwill remains uncertain.
Political upheavals in Bangladesh, changing equations in Nepal and the Maldives, China’s expanding influence and Pakistan’s international engagement expose the limits of assuming that regional predominance automatically commands loyalty. India must recognise that its neighbours seek strategic autonomy.
China has expanded its influence through infrastructure financing, trade, energy projects and political engagement. Sri Lanka’s Hambantota port illustrates how economic partnerships can acquire strategic significance, while Bangladesh, Nepal and the Maldives have also strengthened engagement with Beijing.
India cannot counter China merely by matching its financial resources. It must deliver infrastructure on schedule, strengthen energy connectivity and respond to local needs. Timely implementation and respect for sovereignty are essential to sustaining regional influence.
Sheikh Hasina’s ouster in August 2024 and her subsequent presence in India transformed a relationship built on close political cooperation into a source of diplomatic uncertainty.
Teesta water-sharing, border management, trade and energy cooperation now require sustained dialogue and greater sensitivity to Bangladeshi sovereignty. Stable ties with Dhaka are vital for India’s Northeast connectivity and the Bay of Bengal.
{{/usCountry}}Teesta water-sharing, border management, trade and energy cooperation now require sustained dialogue and greater sensitivity to Bangladeshi sovereignty. Stable ties with Dhaka are vital for India’s Northeast connectivity and the Bay of Bengal.
{{/usCountry}}Nepal’s relationship with India combines civilisational intimacy with persistent political sensitivities. Border disputes involving Kalapani, Limpiyadhura and Lipulekh have periodically strained ties. China’s engagement has given Kathmandu additional diplomatic leverage.
Mutual respect, sovereign equality and sensitivity towards smaller neighbours should guide Indian diplomacy.
The Maldives offers a similar lesson. The ‘India Out’ campaign associated with President Mohamed Muizzu’s rise in 2023 reflected concerns over sovereignty and Indian military personnel. India must preserve maritime cooperation while respecting Maldivian political choices.
India’s timely assistance during Sri Lanka’s economic crisis strengthened its regional credentials. However, Colombo continues to balance relations with India and China. New Delhi should deepen trade, energy and maritime cooperation while respecting Sri Lankan sovereignty and Tamil concerns.
Bhutan remains a close partner through hydropower and security cooperation. Nevertheless, China’s efforts to resolve its border dispute with Bhutan make sustained Indian engagement essential, with Bhutan’s economic aspirations and strategic interests remaining central.
Relations with Pakistan remain burdened by terrorism, Kashmir and military confrontation. The Pahalgam terrorist attack in April 2025 and India’s subsequent Operation Sindoor deepened the rupture. Improvement requires credible action against cross-border terrorism, alongside diplomatic channels to prevent escalation.
Myanmar’s military rule, internal conflict, refugee movements and insurgency along India’s northeastern frontier pose serious challenges. China’s influence over armed groups, including the Myanmar National Democratic Alliance Army, the Ta’ang National Liberation Army and the Arakan Army, complicates India’s strategic calculations. New Delhi must balance border security with humanitarian concerns while pursuing connectivity wherever feasible.
Afghanistan remains important despite the constraints of Taliban rule. Humanitarian assistance and development cooperation can preserve goodwill and protect India’s historical presence. Improved engagement also offers opportunities amid Kabul’s tensions with Pakistan.
Washington’s tariffs, disagreements over Russian oil purchases and renewed engagement with Pakistan have generated concern in New Delhi. Yet India’s neighbourhood difficulties cannot be attributed to American policy alone. Domestic political aspirations and India’s diplomatic choices are equally important.
New Delhi must manage Washington pragmatically, preserving strategic autonomy without allowing economic disputes to undermine essential security cooperation.
Neighbourhood First requires a shift from asserting regional primacy to building patient partnerships. India must make cooperation attractive on its own merits by delivering infrastructure on time, expanding trade, resolving water-sharing disputes and institutionalising consultations beyond individual leaders. SAARC’s limitations should encourage greater use of BIMSTEC, BBIN and the Indian Ocean Rim Association.
India must distinguish legitimate security concerns from its neighbours’ sovereign choices. Strategic restraint is not weakness but an investment in lasting influence.
Geography gives India an enduring advantage, but cannot guarantee friendship. Neighbourhood First must become a policy of listening as much as leading, accommodating as much as asserting, and delivering as much as promising. Regional leadership will ultimately be measured not by how many neighbours India can compel to align with it, but by how many willingly choose to cooperate.
(The views expressed are personal)
This article is authored by KS Tomar, senior political analyst and strategic affairs columnist, Shimla.