Indian & World Geography·Definition

Extended Neighbourhood — Definition

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Version 1Updated 5 Mar 2026

Definition

India's Extended Neighbourhood policy represents a fundamental shift in diplomatic thinking from traditional border-centric foreign policy to a more expansive, strategic approach that recognizes India's growing global influence and responsibilities.

Unlike the Neighbourhood First policy which focuses on immediate neighbors like Pakistan, China, Bangladesh, Nepal, Bhutan, Sri Lanka, and Myanmar, the Extended Neighbourhood encompasses regions that are geographically proximate but not directly bordering India, yet remain crucial for India's strategic interests.

This policy framework includes Central Asian republics (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan), West Asian countries (Iran, Afghanistan, Gulf Cooperation Council nations), Southeast Asian nations beyond ASEAN core members, and East African countries along the Indian Ocean rim.

The policy emerged from the recognition that in an interconnected world, India's security and prosperity cannot be ensured by focusing solely on immediate neighbors. Energy security forms a cornerstone of this approach, as India imports over 85% of its crude oil requirements, with significant supplies coming from the Gulf region and potential future sources in Central Asia.

The Extended Neighbourhood strategy acknowledges that India's energy lifelines pass through these regions, making stable relationships essential for economic growth. Connectivity projects represent another vital dimension, with initiatives like the Chabahar Port in Iran, the International North-South Transport Corridor (INSTC), and various infrastructure development projects aimed at creating alternative trade routes that bypass Pakistan and reduce dependence on Chinese-controlled infrastructure.

Cultural and civilizational links provide the soft power foundation for this policy, leveraging India's historical Buddhist connections with Central Asia, Hindu-Buddhist heritage in Southeast Asia, and ancient trade relationships across the Indian Ocean.

The policy also recognizes the strategic importance of the Indian diaspora in these regions, particularly in the Gulf countries where over 8 million Indians work and contribute significantly to India's foreign exchange reserves through remittances.

From a security perspective, the Extended Neighbourhood policy addresses concerns about regional stability, terrorism, drug trafficking, and the growing influence of rival powers, particularly China's Belt and Road Initiative (BRI) which seeks to create alternative power centers in India's traditional sphere of influence.

The policy framework emphasizes multi-alignment rather than alignment, seeking to build partnerships based on mutual interests while maintaining strategic autonomy. This approach allows India to engage simultaneously with competing powers like Iran and Saudi Arabia, Russia and the United States, without compromising its independent foreign policy stance.

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