What is the Neighbourhood First Policy?

India's Neighbourhood First Policy is a cornerstone of the Modi government's foreign policy, emphasising that India's immediate neighbours are its foremost diplomatic priority. Signalled from May 2014 when PM Modi invited all SAARC leaders to his swearing-in ceremony, the policy aims to deepen connectivity, strengthen economic ties, and build goodwill with nations sharing land and maritime borders with India.

The policy covers India's immediate neighbours: Bangladesh, Bhutan, Nepal, Sri Lanka, Maldives, Myanmar, Afghanistan, and — with caveats — Pakistan. It operates through development partnerships, infrastructure projects, Lines of Credit, humanitarian assistance, and institutional platforms like BIMSTEC. The approach reflects a recognition that India's security and growth cannot be separated from the stability and prosperity of its neighbourhood.

The policy is complemented by the SAGAR (Security and Growth for All in the Region) doctrine for the Indian Ocean, the Act East Policy for Southeast Asia, and most recently, the MAHASAGAR vision announced in 2025 connecting India's neighbourhood strategy to its broader maritime outreach.

Key Features

# Feature Details
1 Initiated 2014 — SAARC leaders invited to PM Modi's swearing-in
2 Countries Covered Bangladesh, Bhutan, Nepal, Sri Lanka, Maldives, Myanmar, Afghanistan, Pakistan
3 BIMSTEC Focus Preferred over SAARC as a regional cooperation platform (avoids Pakistan-related gridlock)
4 Development Aid Lines of Credit, grant assistance, capacity building — India is the largest development partner for Bhutan, Nepal, Bangladesh
5 Connectivity Projects India-Myanmar-Thailand Highway, Maitri Setu (India-Bangladesh), cross-border rail links
6 Humanitarian Response First responder during Nepal earthquake (2015), Sri Lanka crisis (2022), Maldives water crisis (2014)
7 SAGAR Doctrine Security and Growth for All in the Region (2015) — Indian Ocean neighbourhood
8 MAHASAGAR Vision Announced 2025 — maritime and neighbourhood cooperation alignment

Current Status / Latest Developments

  • PM Modi attended the 6th BIMSTEC Summit in Bangkok (4 April 2025) — the first physical BIMSTEC leaders' meeting since 2018.
  • The BIMSTEC Charter was adopted in May 2024, giving the organisation a formal legal personality. India appointed Indra Mani Pandey as Secretary General.
  • India granted USD 1 million to the BIMSTEC Secretariat for capacity building.
  • BIMSTEC Vision 2030 was adopted at the Bangkok Summit.
  • India leads the Security vertical in BIMSTEC's seven work segments.
  • India's outreach continued with the BIMSTEC Youth Summit (Ahmedabad, February 2025) and Climate Change Conference (Delhi, February 2025).
  • Relations with Bangladesh, Sri Lanka, and Maldives remain focal points under the policy, with development assistance and connectivity projects driving engagement.

UPSC Exam Corner

Prelims: Key Facts

  • Started: 2014, PM Modi; SAARC leaders at swearing-in ceremony
  • BIMSTEC members: Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, Thailand (7 members)
  • BIMSTEC Charter: Adopted May 2024
  • BIMSTEC HQ: Dhaka, Bangladesh
  • India leads: Security vertical in BIMSTEC
  • SAGAR: Security and Growth for All in the Region (2015)
  • 6th BIMSTEC Summit: Bangkok, April 2025

Mains: Probable Themes

  1. "Evaluate India's Neighbourhood First Policy as a tool for regional stability and development."
  2. "Why has India shifted its regional cooperation focus from SAARC to BIMSTEC?"
  3. "Examine the challenges India faces in implementing the Neighbourhood First Policy — with reference to China's growing influence in South Asia."
  4. "How does the Neighbourhood First Policy complement India's Act East Policy and Indo-Pacific strategy?"

Sources: PIB — PM Modi BIMSTEC | Indian Army — Neighbourhood First Policy | Insights on India — BIMSTEC Strategy