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India’s Neighbourhood First Policy |
Why in News- India’s Ministry of External Affairs has earmarked a major chunk of the budget, Rs 4,883 crore, for “assistance to countries”, of which the neighbouring countries – Nepal, Sri Lanka, Bhutan, Maldives, Afghanistan and Myanmar – will receive the biggest share.
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UPSC Syllabus: Prelims: Current Affairs of National & International Importance Mains: GS-II, III: International Relations, Budget |
Neighbourhood First Policy
• The Neighbourhood First Policy is a strategic initiative by the Government of India to prioritise and strengthen relations with its immediate neighbouring countries.
• The policy focuses on promoting regional cooperation, stability and economic integration.
The key objectives of the Neighbourhood First Policy include:
1. Regional Stability: Ensuring peace and security in the South Asian region.
2. Economic Integration: Promoting trade, investment and economic cooperation among neighbouring countries.
3. Political Cooperation: Enhancing political dialogue and cooperation to address common regional challenges.
4. Development assistance: Providing financial and technical assistance for infrastructure and development projects in neighbouring countries.
India and its Neighbouring Countries
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1. Pakistan: In the north-west. 2. China: In the north and north-east. 3. Nepal: In the north. 4. Bhutan: In the north. 5. Bangladesh: In the east. 6. Myanmar: In the east. 7. Afghanistan: Shares border through Pakistan-occupied Kashmir region. 8. Sri Lanka: Located south of India, separated by the Palk Strait. 9. Maldives: Located to the southwest in the Indian Ocean. |
Indian states bordering neighbouring countries
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(India and its neighbouring countries and border states)
Budget allocations for neighbouring countries (2024-25)
• The total budget estimate for the Ministry of External Affairs for 2024-25 is Rs 22,155 crore, higher than the Rs 18,050 crore allocated in 2023-24.
• However, this is lower than the revised estimate of Rs 29,121 crore for the same fiscal year.
• Rs 4,883 crore has been earmarked for assistance to countries, with special focus on India’s neighbouring countries – Nepal, Sri Lanka, Bhutan, Maldives, Afghanistan and Myanmar.
Key beneficiaries
1. Bhutan:
Allocation: Rs 2,068.56 crore
Comparison: Slightly lower than last year’s Rs 2,400 crore
Purpose: To support various developmental and infrastructure projects
2. Nepal:
Allocation: Rs 700 crore
Comparison: Increase from last year’s Rs 550 crore, revised to Rs 650 crore
Purpose: To enhance bilateral cooperation and support infrastructure development
3. Maldives:
Allocation: Rs 400 crore
Comparison: Same as last year, though the revised budget for 2023-2024 shows Rs 770.90 crore
Purpose: Sustained investments despite political tensions
4. Sri Lanka:
Allocation: Rs 245 crore
Comparison: Increase from last year’s Rs 150 crore
Purpose: To support economic reform and development initiatives
5. Seychelles:
Allocation: Rs 100 crore 40 crore
Comparison: More than Rs 10 crore last year
Purpose: To enhance bilateral relations and support local projects
6. Afghanistan:
Allocation: Rs 200 crore
Comparison: Unchanged from last year
Purpose: To continue humanitarian and developmental assistance
7. Iran (Chabahar Port Project):
Allocation: Rs 100 crore
Comparison: Unchanged from last three years
Purpose: To support strategic connectivity and trade initiatives
Importance of India’s Neighbourhood First Policy
India’s Neighbourhood First Policy emphasises the importance of maintaining strong, cooperative and mutually beneficial relations with its immediate neighbours.
Regional Stability
• By building strong relations with neighbouring countries, India can better address common security threats such as terrorism, smuggling and cross-border extremism.
• This cooperative approach ensures a more secure region.
• Maintaining peaceful and cooperative relations with neighbours reduces border conflicts and tensions, thereby promoting a more stable environment.
Economic integration
• Better bilateral relations promote trade and investment opportunities, thereby boosting economic growth in the region.
• Collaborative efforts can lead to the development of regional trade blocs and free trade agreements.
• Major infrastructure projects such as road construction, power supply and port development enhance connectivity and economic integration.
Political cooperation
• Strong political ties facilitate better diplomatic dialogue and cooperation on regional and global issues.
• This helps to address common challenges such as climate change, natural disasters and health pandemics more effectively.
• Joint efforts become more effective in addressing regional challenges, thereby promoting regional harmony.
Cultural exchange -Exchange
• Cultural exchange promotes mutual understanding and strengthens people-to-people ties, thereby increasing goodwill and cordiality among nations.
• Collaborative initiatives in education and technology promote innovation and development, benefiting all countries involved.
Challenges of India’s Neighbourhood First Policy
India’s Neighbourhood First Policy aims to build strong, cooperative, and mutually beneficial relationships with its neighbouring countries.
However, this policy faces several challenges that need to be addressed to ensure its success.
Political instability
• Political instability in neighbouring countries can lead to frequent changes in leadership, disrupting ongoing projects and agreements.
• This instability makes it difficult to maintain sustained and long-term cooperation.
Example: Political turmoil in countries such as Nepal and Myanmar has posed challenges to India’s diplomatic efforts and development projects.
Internal conflicts
• Internal conflicts and civil unrest within neighbouring countries can affect bilateral relations and regional stability.
• These conflicts often divert attention and resources from cooperative initiatives.
Example: The ongoing conflict in Afghanistan and ethnic tensions in Myanmar have posed significant challenges to India’s engagement with these countries.
Anti-India sentiments
• Historical disputes and conflicts, such as with Pakistan, pose significant obstacles to cooperation.
• These long-standing issues foster mistrust and hamper diplomatic efforts.
Example: The Kashmir conflict remains a major point of contention between India and Pakistan, affecting overall bilateral relations.
Nationalist movements
• Growing nationalism and anti-India sentiments in some neighbouring countries can hamper diplomatic efforts.
• These sentiments often arise from domestic political dynamics and historical grievances.
Example: Anti-India protests in the Maldives and nationalist movements in Bangladesh have posed diplomatic challenges for India.
Resource Allocation and Utilization
• Ensuring that financial assistance and resources provided by India are effectively utilized for intended development projects can be challenging.
• Mismanagement or misallocation of aid can lead to inefficiencies and reduced impact.
Example: In some cases, aid provided to Afghanistan and Myanmar has faced challenges in effective implementation due to local governance issues.
Monitoring and Accountability
• It is important to put in place mechanisms to monitor and ensure accountability of the assistance provided.
• Without proper monitoring, there is a risk of corruption and misuse of funds.
Example: Aid provided to Nepal and Bhutan requires strong monitoring frameworks to track the use of funds to ensure accountability.
Economic Inequalities
• Economic inequalities between neighbouring countries can create imbalances in regional cooperation and development.
• Countries with weak economies may struggle to keep pace with development initiatives.
Example: Economic disparities between India and countries like Afghanistan and Nepal pose challenges in achieving balanced regional development.
Social and Cultural Differences
• Social and cultural differences can sometimes lead to misunderstandings and tensions.
• Respecting and accommodating these differences is essential for smooth cooperation.
Example: Cultural differences between India and its neighbours like Bhutan and Sri Lanka need careful management to ensure harmonious relations.
Geopolitical Influences
• The influence of other major powers like China and the United States in the South Asian region can complicate India’s relations with its neighbours.
• Competing interests and alliances can lead to geopolitical tensions.
Example: China’s growing influence in Nepal, Sri Lanka and the Maldives is a strategic challenge for India.
Government Initiatives to Promote Neighbourhood First Policy
India’s Neighbourhood First Policy focuses on promoting strong, cooperative and mutually beneficial relations with its neighbouring countries.
Infrastructure Development
• India has made significant investments in hydropower projects in Nepal and Bhutan, leading to increased energy cooperation and infrastructure development.
• Infrastructure projects such as road construction and airport development have been prioritised to improve connectivity and boost economic activities.
• Allocation of Rs 100 crore has been continued for the Chabahar Port Project to enhance connectivity and trade routes between India, Iran and Afghanistan.
Economic Assistance
• Substantial financial assistance has been earmarked for neighbouring countries in the Union Budget 2024-25.
• Bhutan has received Rs 2,068.56 crore, Nepal Rs 700 crore and Maldives Rs 400 crore for infrastructure and development projects
Bilateral Agreements
• Signing of bilateral agreements to facilitate trade, investment and economic cooperation with neighbouring countries.
Security Cooperation
• Conducting joint military exercises and training programs with neighbouring countries to enhance security cooperation and preparedness.
Example: Sri Lanka, Nepal and Ba Joint military exercises with countries like Bangladesh.
Counter-terrorism measures
• Sharing intelligence and collaborating on counter-terrorism efforts to tackle common security threats.
Example: Collaboration with Bangladesh and Myanmar on counter-terrorism initiatives.
Cultural and educational exchange programmes
• Providing scholarships and training programmes to students and professionals from neighbouring countries to promote goodwill and enhance skill development.
Cultural festivals
• Organising cultural festivals and exchange programmes to promote mutual understanding and strengthen people-to-people ties.
Example: Festivals showcasing Indian culture in Bhutan, Nepal and Sri Lanka.
Humanitarian assistance
• Providing timely humanitarian assistance and disaster relief to neighbouring countries affected by natural disasters.
Example: Assistance provided to Nepal during the 2015 earthquake and to Sri Lanka during floods.
Medical assistance
• Extending medical assistance and supplies during health crises like the COVID-19 pandemic.
Example: Supply of COVID-19 vaccines and medical equipment to neighbouring countries under the Vaccine Maitri initiative.
Technological and Scientific Cooperation
• Partnership in space research and satellite launch with countries like Sri Lanka and Bhutan to promote scientific collaboration.
Example: ISRO’s assistance in launching satellites for neighbouring countries.
Agricultural Development
• Joint projects in agricultural research and development to enhance food security and agricultural productivity in the region.
Example: Agricultural cooperation with Myanmar and Bangladesh.