About India’s Neighbourhood First Policy (NFP)
- Genesis: India’s Neighbourhood First Policy (NFP) was conceived in 2008, with its focus intensifying post-2014.
- Concept: Countries which just neighbours of India fall under the ambit of this policy for the management of the relations.
- Countries part of NFP (Neighbourhood First Policy): Afghanistan, Bangladesh, Bhutan, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka.
- Aim: it aims to encourage connectivity(physical, digital, and people-to-people) throughout the region. It also looks to increase trade and commerce.
- Key principles of engagement: 5S- Samman (respect), Samvad (dialogue), Shanti (peace), Samriddhi (prosperity), and Sanskriti (culture) guided by a Consultative and Non-Reciprocal, Outcome-Oriented and Holistic Approach.

Key aspects of India’s NFP (Neighbourhood First Policy)
(a) Enhanced Economic Cooperation through Connectivity: It facilitates independence in economic, political, and other sectors to strengthen its own influence and counter external powers. For eg- Bangladesh: Mongla seaport rights and rail transit in July 2024 reduce costs for northeastern India.
(b) Increased High-Level Political Engagements: Build trust and strengthen diplomatic ties, ensuring a stable regional environment. For eg- Nepal’s PM of India’s 2014 visit, first in 17 years. Afghanistan: Zaranj-Delaram Road, Pul-e-Khumri to Kabul Transmission Line, Salma Dam Power Project, Afghan Parliament Construction.
(c) Development Assistance and Infrastructure Projects: Aid is critical during crises and for long-term development. Consequently, positioning India as a reliable partner. E.g., Maldives: Greater Malé Connectivity Project bridge, Hanimadhoo Airport, etc.
(d) Energy Cooperation and Regional Power Markets: Develop regional energy markets and energy security through hydropower and power trade agreements. For eg- Bangladesh: Tripartite Power Trade in 2024 enables importing 40 MW from Nepal via India.
(e) Geopolitical Balancing and Countering External Influence: It provides opportunities to counter China’s influence and maintain South Asia as India’s sphere of influence. E.g., currency swap( or we can say financial support) to the Maldives was a direct counter to China’s hegemony in the region.
(f) Humanitarian and Disaster Relief Engagement: India has consistently responded as the first responder. E.g., Vaccine Maitri: Bhutan and Maldives were the first nations that received it under India’s NFP. E.g., Sri Lanka: India’s US$4 billion financing during the 2022 economic crisis.
Challenges Faced by India in its Neighbourhood
(a) Internal instability: Recent political upheavals and instability in neighbouring countries have significant implications for regional stability and India’s strategic interests in the neighbourhood.
(b) Perceived Interventionism: Negative perceptions of India as an interventionist power (perceived ‘Big-Brother’ attitude), consequently, worsening relations. For eg, India’s 2015 economic blockade in Nepal, seen as protecting Madhesi interests, heightened anti-India sentiment.
(c) Slow Project Implementation: Delays in infrastructure projects erode confidence and fuel anti-India sentiment. For eg, the Greater Malé Connectivity Project in the Maldives faced protracted timelines, becoming a political issue.
(d) Unresolved Disputes and Irritants: Failure to resolve key issues like water sharing, taxes, and fishing, causing ongoing friction. For eg- Teesta River water sharing with Bangladesh, illegal fishing in Sri Lankan waters, Kalapani dispute with Nepal remain unresolved.
(e) Lack of Coordination Within India: Internal policy inconsistencies affect trade and transit, exacerbating tensions. For eg, the Suvidha fee implemented by West Bengal increased costs for boulder exports from Bhutan to Bangladesh via India.
(f) China’s Growing Influence: Despite India’s efforts, China’s increasing presence in South Asia. For eg- notably in Sri Lanka ( Hambantota Port), Nepal & Bangladesh (part of BRI), and the Maldives, continues to challenge India’s regional dominance.
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Way forward
Diplomatic Engagement and Sensitivity: India has to hold continuous bilateral talks with its neighbours to ameliorate diplomatic relations. But at the same time, it will have to be aware of the domestic issues and political realities. Given that most of these nations are democratic, the pressures of electoral cycles and competitive politics also have to be managed.
Addressing Critical Irritants: Urgent need is to resolve age-old issues like water-sharing disputes (e.g., the Teesta River issue) and territorial disputes (e.g., Kalapani and Kachatheevu).
Balancing Economic Assistance: India shouldn’t encourage over-dependence when giving economic support to any of the nations. India’s image will become a reliable partner if projects are completed efficiently.
Geopolitical Prudence: It becomes very important for India to counter China’s growing hegemony in the region and at the same time ensure neighbouring countries’ non-hesitancy in aligning with any country.
Encouraging Democratic Values: While addressing issues of political instability in the regions, India should always support democratic processes. As seen in countries like Bangladesh, Maldives, Afghanistan, etc.
Adapting to Domestic Political Shifts: A flexible approach is necessary when we deal with countries like the Maldives and Sri Lanka, as their domestic politics changes frequently.
Conclusion
India’s NFP, guided by Samman (respect), Samvad (dialogue), Shanti (peace), and Samriddhi (prosperity), strives not only development and fulfillment of India’s national interest but also of the neighbouring countries. It works on mutual collaboration and coordination, resulting in mutual and shared economic, political, and social development.