Maarg Manthan · Topic 18.5

Neighbourhood First Policy

International Relations & Places in News › India's Foreign Policy Doctrines and Principles · Topic 18.5

The Neighbourhood First Policy is the approach of the Government of India, announced in 2014, of giving priority to relations with immediate neighbours in South Asia and the Indian Ocean through connectivity, trade, development help and people-to-people ties. It began symbolically when Prime Minister Narendra Modi invited the leaders of the South Asian Association for Regional Cooperation, SAARC, countries to his swearing-in on 26 May 2014. The policy covers Afghanistan, Bangladesh, Bhutan, the Maldives, Myanmar, Nepal, Pakistan and Sri Lanka. Its stated aims are shared prosperity and security, and the working formula often cited is five Ss in Hindi: Samman (dignity), Samvad (dialogue), Sahyog (cooperation), Shanti (peace) and Samriddhi (prosperity).

5 min read · UPSC Prelims · International Relations · India's Foreign Policy Doctrines and Principles

At a Glance

Announced 2014 (Modi’s swearing-in, 26 May)
Focus Connectivity, trade, development help
Key agreement Land Boundary Agreement with Bangladesh (2015)
Tools Lines of credit, Border Haats, check posts
Challenge China’s growing role
Exam link UPSC Prelims, International Relations: India’s Foreign Policy Doctrines and Principles

Where Does It Fit?

This is the fifth topic of the macro on India’s foreign policy doctrines and principles. It is the current policy for the neighbourhood and carries forward elements of the Gujral Doctrine in a more interest-driven form. Previous topic: Look East Policy and Its Evolution into Act East Policy. Next topic: SAGAR Doctrine (Security and Growth for All in the Region).

What Does the Policy Involve?

Political outreach: the invitation to SAARC leaders in 2014 and frequent visits to neighbouring countries by the Prime Minister and External Affairs Minister.
Connectivity: roads, railways, waterways, power grids and pipelines, such as the Maitri Setu bridge to Bangladesh and the petroleum pipeline to Nepal.
Development partnership: lines of credit, grants and projects in neighbouring countries, including housing in Sri Lanka and hydropower in Bhutan.
Trade facilitation: Integrated Check Posts along borders, Border Haats on the border with Bangladesh, and duty concessions to least developed neighbours.
Security cooperation: maritime domain awareness, joint exercises and counter-terrorism cooperation.
Crisis help: India has acted as first responder in crises, including earthquake relief in Nepal in 2015 and financial and fuel support to Sri Lanka in 2022, which was widely reported at about 4 billion US dollars.

What Are the Key Achievements?

Item	Detail
Land Boundary Agreement	The 1974 agreement with Bangladesh was operationalised in 2015 with the exchange of enclaves, ending a long-pending issue
BBIN Motor Vehicles Agreement	Signed in 2015 by Bangladesh, Bhutan, India and Nepal for passenger and cargo vehicle movement. Bhutan did not ratify it, so the others went ahead with sub-regional plans
South Asia Satellite	GSAT-9 was launched in May 2017 for communication services to neighbours. Pakistan did not take part
Energy links	Power trade with Bhutan, Nepal and Bangladesh, and the Motihari-Amlekhgunj pipeline to Nepal
BIMSTEC focus	India gave more weight to BIMSTEC when SAARC stalled after 2016
Border Haats	Local markets on the India-Bangladesh border that let people trade local produce

What Else Should You Remember?

SAARC stalled: the 2016 summit in Islamabad did not take place after the Uri attack, and India turned to sub-regional groups, as in South Asian Association for Regional Cooperation (SAARC).
China factor: China has grown its trade, loans and ports in the region under the Belt and Road Initiative, such as Hambantota in Sri Lanka and Gwadar in Pakistan.
Maldives episode: the India Out campaign and later reset showed the political sensitivity of Indian presence, as in India-Maldives Relations: India Out Campaign, Neighbourhood First Policy.
Nepal: the border blockade of 2015 and the map dispute over Lipulekh and Kalapani in 2020 troubled ties.
Bangladesh and Myanmar: the changes of government in Bangladesh in 2024 and civil conflict in Myanmar since 2021 test the policy.
Afghanistan and Pakistan: India built the Afghan Parliament and the Salma Dam in Afghanistan, while talks with Pakistan remain frozen over terrorism, and the policy does not apply in the same way to Pakistan.
Bhutan: India is Bhutan’s largest development partner and buys surplus hydropower from projects such as Punatsangchhu and Mangdechhu.
Link to Act East: the North East acts as a hinge between Neighbourhood First and Act East, as in Look East Policy and Its Evolution into Act East Policy.

Why Does It Matter and What Are the Challenges?

Stability at the border: peace and trade with neighbours reduce security risks and support India’s growth.
Counter to China: India offers development options and alternatives to loans from China.
Delivery gaps: projects financed by Indian lines of credit have often been delayed, and neighbours have complained about slow completion.
Domestic politics: local politics in neighbouring states, such as water sharing with Bangladesh and the status of Tamils in Sri Lanka, affect ties.
Exam pattern: questions ask the year of the policy, tools, agreements and the effect of China.

As an analytical point, the policy relies on India’s economic weight and goodwill, but neighbours have choices. India must deliver quickly, treat them as partners and avoid appearing to dominate.

Why Is This Topic Important?

Facts Year and tools asked
Contest India and China
Gap Slow delivery

What Came Next?

The next topic covers the SAGAR Doctrine. Next topic: SAGAR Doctrine (Security and Growth for All in the Region).

Key People and Terms

Neighbourhood First 2014 priority for neighbours
Border Haat Border market for local trade
ICP Integrated Check Post
Line of credit Concessional loan from India
BBIN Bangladesh, Bhutan, India, Nepal
SAARC South Asian Association for Regional Cooperation

Exam Corner

Points to Remember

SAARC leaders invited on 26 May 2014.
Land Boundary Agreement implemented in 2015.
GSAT-9 South Asia Satellite, 2017.
BBIN Motor Vehicles Agreement, 2015.
Five Ss: Samman, Samvad, Sahyog, Shanti, Samriddhi.

Do Not Confuse With

Neighbourhood First and Gujral Doctrine 2014 policy versus 1996 principles
SAARC and BIMSTEC South Asia group versus Bay of Bengal group
Neighbourhood First and Act East Near neighbours versus Southeast Asia

Memory Hook

Fourteen swearing-in, SAARC guests came; roads, credit, haats, and the boundary treaty in the frame.

Mains Angle

Questions ask about challenges in the neighbourhood. These points add depth.

Tools Connectivity and credit
Gains LBA and energy links
Limits China and delays

A Question You May Face

An original practice question, not a past paper question.

“Evaluate India’s Neighbourhood First Policy and discuss the challenges to its implementation.”

How to Answer

Policy 2014 aims.
Tools Credit, links.
Gains LBA, energy.
Challenges China, delays.

GS Relevance

Prelims: features, tools, agreements. GS Paper 2: India and its neighbourhood.

Frequently Asked Questions

What is the Neighbourhood First Policy?

The Neighbourhood First Policy is India's approach, announced in 2014, of giving priority to relations with immediate neighbours through connectivity, trade, development partnership and people-to-people ties. Its symbolic start was the invitation to SAARC leaders to the Prime Minister's swearing-in on 26 May 2014.

What are the five Ss of the policy?

The five Ss are Samman (dignity), Samvad (dialogue), Sahyog (cooperation), Shanti (peace) and Samriddhi (prosperity), a formula often used to describe India's approach to foreign policy and its relations with neighbours. They emphasise respect, talks, joint work, peace and shared development.

What was the Land Boundary Agreement with Bangladesh?

The Land Boundary Agreement of 1974, with its 2011 protocol, was implemented in 2015 through the exchange of enclaves between India and Bangladesh. It settled a long-pending boundary issue, gave residents of the enclaves a nationality and was seen as a major success of the policy.

Why did India turn to BIMSTEC?

India turned to BIMSTEC because SAARC stalled after the 2016 summit at Islamabad was postponed in the aftermath of the Uri attack, and because Pakistan blocked some connectivity proposals. BIMSTEC links South Asia with Southeast Asia and excludes Pakistan, so it fits India's Neighbourhood First and Act East goals.

What are the main challenges to the policy?

The main challenges are China's growing role through loans and ports, delays in Indian projects and lines of credit, political change in neighbouring states, and local issues such as water sharing and border disputes. India must deliver promptly and treat neighbours as equal partners to maintain influence.

PYQ Practice — Statement Analysis

1 SAARC leaders were invited to the 2014 swearing-in.

True

On 26 May 2014.

2 The Land Boundary Agreement was implemented with Nepal.

False

It was with Bangladesh, in 2015.

3 GSAT-9 is called the South Asia Satellite.