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From continuity to change: India’s neighbourhood first policy
ET Bureau | February 3, 2026 3:00 PM CST

Synopsis

India's neighbourhood policy is adapting to complex regional shifts. Geopolitical competition and internal changes in neighbouring nations demand tailored approaches. A recent dialogue and book highlight the need for differentiated engagement, moving beyond a one-size-fits-all strategy. Focusing on country-specific needs and building trust are crucial for regional stability and India's influence.

Geopolitics and New Delhi
India’s approach to its neighbourhood has long been shaped by geography and history, captured succinctly in former Prime Minister Atal Bihari Vajpayee’s observation: “You can change your friends but not neighbours.” This reality continues to frame India’s neighbourhood policy, where enduring cultural ties intersect with hard strategic choices.

As nations grapple with the evolving regional and global geopolitics, India has increasingly sought to balance its security concerns, development partnerships, and economic diplomacy to foster stability and cooperation across South Asia and its extended neighbourhood.
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Shifting regional dynamics have added new layers of complexity to India’s neighbourhood engagement. Recent years have witnessed political transitions and internal upheavals across South Asia, including developments in Nepal, Bangladesh, and Sri Lanka, requiring India to adapt its diplomatic and strategic approaches.


Political unrest in Bangladesh in 2024, the emergence of anti-India sentiment in the Maldives (since moderated) and continuing internal conflict in Myanmar have underscored the need for a more calibrated, responsive neighbourhood strategy. These challenges have been further compounded by China’s expanding footprint in the region, particularly through the Belt and Road Initiative (BRI).

Against this backdrop, India’s neighbourhood policy is no longer only about historical goodwill, but about adaptive, country-specific engagement that responds to diverse political realities while safeguarding regional stability.

It is in this context that Chintan Research Foundation (CRF),had an insightful discussion titled and themed as “Perspectives From and Within India and Its Neighbourhood” at the India International Centre, New Delhi. The high-level dialogue brought together policymakers, industry leaders, and domain experts to deliberate on the evolution of India’s neighbourhood policy, alongside thematic analyses of the economic, political, and security challenges confronting the region.

The co-edited book by Mr. Shishir Priyadarshi and Dr. Cchavi Vasisht on the same theme is an amalgamation of chapters by former diplomats, scholars and regional experts which gives a comprehensive view of the neighbourhood as well as how New Delhi’s policies are perceived across the region.

The book is organised into three sections: country-specific studies of India’s bilateral ties across South Asia; analyses of perceptions of India within neighbouring states; and thematic chapters on shared regional challenges such as economic integration, energy transition, climate change, migration, maritime cooperation, and crisis response.

The event featured opening remarks by Mr. Shishir Priyadarshi, President, CRF. He emphasised that the neighbourhood constitutes India’s most challenging strategic theatre. Against this backdrop, he stated that the edited volume by CRF seeks to pivot from the doctrinal debates and instead aims to capture the domestic political realities that shape regional responses to India’s diplomacy.

He noted that India’s neighbourhood policy had become increasingly complex amid geopolitical competition, political transitions in South Asia, climate pressures, and rising expectations from a growing Indian economy. While stressing that over diversity, ever-evolving nature, and “non-linear” attribute of the region, he stated that a one-size-fits-all approach can’t be adopted by India while engaging with its neighbourhood.

Dr. Cchavi Vasisht, Associate Fellow, CRF, added that the region functions in a state of constant flux rather than fixed agency. She stated that “Neighbourhood First” is not just a slogan in New Delhi, more so when most of the scholars and practitioners are talking and discussing about the allocations made in the Union Budget.

The allocations made to immediate neighbours underlines a simple but powerful idea that runs through this book: that development assistance, connectivity projects, and capacity-building and security are today central to India’s regional diplomacy. The central message of this book is that our engagement must be "differentiated and context-specific". What works in Bhutan does not apply to Myanmar; the strategies required for Bangladesh are distinct from those for Nepal. And stated that the aim of book was to encourage a more informed and pragmatic conversation.

As the floor opened for the panel, discussions highlighted India’s efforts to balance national interests with regional growth and security, including diplomatic initiatives such as engaging neighbouring leaders at the 2014 swearing-in ceremony and aiding during the COVID-19 crisis.

Sreeram Chaulia, Dean, Jindal school of international affairs, OP Jindal Global University. Being the moderator of the discussion, he outlined that the volume spans across the key chapters by Amb Ranjit Rae, senior thinkers on Nepal, and Raghav Sharma on Afghanistan. He stated that the chapters focus on how India is perceived by its neighbours, the asymmetry and “big brother” narrative, and mentioned the gaps between perception and reality.

Dr. Arvind Gupta, Director VIF, pointed out that there is need for transparent engagement and easier visas and exchanges to build trust and counter hedging and anti-India sentiment.Amb. Sujan Chinoy mentioned how, India needs sufficient strength to negotiate effectively while following a cooperative, non-American model of neighbourhood engagement.

With an expanded and competitive regional space, India should build capacity, foster collaboration with neighbours, and ensure its rise creates shared regional stakes.Amb. Manjeev Singh Puri highlighted how Globalisation has fundamentally reshaped traditional relationships also covering India’s connectivity initiatives, including the first India–Nepal oil pipeline, signal a shift from symbolic engagement to functional cooperation, even as trust, civic expectations, and perceptions of asymmetry continue to shape regional outcomes.

Prof. SD Muni, member of IDSA’s Executive Council remarks call for portraying India as a supportive “elder brother,” not a coercive “big brother,” and stress civilisational interconnectedness with neighbours. He highlights gaps in neighbourhood policy outcomes, urging more inclusive, youth-focused diplomacy and calibrated regional engagement amid US–China rivalry.

Lastly, Meenakshi Lekhi, former minister of state of external affairs of India, added that India’s neighbourhood policy has been broad but overstretched, weakening its regional influence despite strong historical foundations. To remain effective amid rising external competition, India must prioritise focused engagement and actively shape regional perceptions.

The discussion concluded that while the principles of India’s Neighbourhood First Policy remain relevant, their execution must be recalibrated to account for changing domestic politics within neighbouring states, shifting public perceptions of India, and new forms of strategic vulnerability.

Engagement must therefore be differentiated recognising that Pakistan, Bangladesh, Nepal, Myanmar, Sri Lanka, the Maldives, Bhutan, and Afghanistan each demand distinct policy instruments rather than uniform diplomatic responses. At the same time, panellists underscored that economic diplomacy alone cannot substitute for trust. CRF stated that the publication was part of its broader effort to bridge academic research and policy practice on India’s foreign and strategic priorities.


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