Significance of PM’s Neighbourhood Diplomacy
Syllabus: International Relations [GS Paper-2]

Image Credit: Gianluigi Guercia/Pool/AFP via Getty Images
Context
Prime Minister Narendra Modi’s neighborhood engagements have been a cornerstone of India’s foreign policy since his first term in office. The Neighborhood First Policy, which emphasizes building strong relationships with neighboring countries, has been instrumental in shaping India’s strategic and economic interests in the region. This policy has evolved over time, addressing various challenges and opportunities that arise from India’s geopolitical position.
Historical Context
The Neighborhood First Policy was formally introduced in 2014, when Prime Minister Modi invited leaders from South Asian countries to his swearing-in ceremony. This marked a significant shift in India’s approach towards its neighbors, emphasizing cooperation and mutual benefit. The policy has since become a central pillar of India’s foreign policy, focusing on enhancing connectivity, trade, and people-to-people ties across the region.
Significance of Neighborhood Engagements
Strategic Importance
India’s neighborhood engagements are crucial for several strategic reasons:
- Regional Stability: By fostering strong relationships with its neighbors, India aims to maintain regional stability. This is particularly important in a region prone to conflicts and geopolitical tensions. For instance, India’s role in BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) highlights its commitment to regional stability and cooperation.
- Economic Integration: The Neighborhood First Policy promotes economic integration through initiatives like the BBIN-Motor Vehicle Agreement, which facilitates cross-border trade and travel among Bangladesh, Bhutan, India, and Nepal. This not only boosts trade but also enhances regional connectivity.
- Countering External Influence: India’s proactive engagement with its neighbors helps counterbalance the influence of other major powers, such as China, in the region. By strengthening bilateral ties and investing in regional infrastructure, India aims to maintain its strategic influence.
Economic Benefits
The economic benefits of neighborhood engagements are multifaceted:
- Trade and Commerce: Enhancing trade and commerce is a key objective of the Neighborhood First Policy. By improving physical and digital connectivity, India seeks to increase trade volumes and economic cooperation with its neighbors.
- Infrastructure Development: India has invested heavily in infrastructure projects across the region, such as roads, railways, and ports. These projects not only facilitate trade but also contribute to the economic development of neighboring countries.
- Investment Opportunities: The policy encourages foreign investment in the region, leveraging India’s economic capabilities to attract investors looking for stable and growing markets.
Challenges and Opportunities
Challenges
Despite the successes, the Neighborhood First Policy faces several challenges:
- Geopolitical Tensions: Conflicts and tensions with neighbors like Pakistan and China pose significant challenges. These tensions can undermine trust and cooperation, complicating the implementation of the policy.
- Diverse Interests: Neighboring countries have diverse interests and priorities, which can sometimes conflict with India’s goals. Balancing these interests while maintaining strong relationships is a delicate task.
- External Interference: The influence of other global powers, particularly China, in the region can complicate India’s efforts to strengthen its neighborhood ties.
Opportunities
The Neighborhood First Policy also presents several opportunities:
- Regional Leadership: India’s proactive engagement allows it to assume a leadership role in regional forums like BIMSTEC and SAARC, promoting its strategic interests and influence.
- Diversification of Partnerships: By engaging with its neighbors, India can diversify its partnerships beyond traditional alliances, enhancing its position in the multipolar world order.
- Cultural and People-to-People Ties: Strengthening cultural and people-to-people ties helps build trust and understanding among nations, fostering a more stable and cooperative environment.
Major Initiatives
Several initiatives have been undertaken under the Neighborhood First Policy:
- BBIN-Motor Vehicle Agreement: Facilitates the movement of vehicles across borders among Bangladesh, Bhutan, India, and Nepal, enhancing regional connectivity.
- Comprehensive Action Plan for Defence with Maldives: Signed in 2016, this agreement strengthens defense cooperation between India and the Maldives.
- Infrastructure Projects: India has invested in numerous infrastructure projects across the region, including roads, railways, and ports, to boost economic integration and connectivity.
Conclusion
Prime Minister Modi’s neighborhood engagements are significant because they reflect India’s strategic priorities and economic ambitions. The Neighborhood First Policy has been instrumental in enhancing regional connectivity, promoting economic integration, and asserting India’s leadership role in South Asia. Despite challenges, the policy has achieved notable successes and continues to evolve, addressing emerging opportunities and challenges in the region. As India navigates the complexities of a multipolar world, its neighborhood engagements will remain crucial for its foreign policy and strategic interests.
Source: HT