Indian & World Geography·Definition

Neighbourhood Relations — Definition

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Version 1Updated 5 Mar 2026

Definition

Neighbourhood Relations in the context of Indian foreign policy refers to India's diplomatic, economic, security, and cultural relationships with countries that share geographical proximity, particularly those in South Asia and the extended neighbourhood.

This encompasses India's bilateral relationships with eight immediate neighbours - Pakistan, China, Nepal, Bhutan, Bangladesh, Sri Lanka, Myanmar, and Afghanistan - as well as maritime neighbours like Maldives.

The concept extends beyond mere geographical contiguity to include shared historical experiences, cultural heritage, economic interdependence, and security concerns that bind these nations together. India's neighbourhood policy is guided by the constitutional directive under Article 51 to promote international peace and maintain just relations between nations.

The neighbourhood assumes critical importance due to several factors: first, geographical proximity means that developments in neighbouring countries directly impact India's security, economy, and domestic stability.

Second, historical connections dating back to ancient trade routes, shared colonial experiences, and the traumatic partition of 1947 have created complex interdependencies. Third, cultural and civilizational links through shared languages, religions, and traditions create natural bonds that transcend political boundaries.

Fourth, economic complementarities offer immense potential for mutual growth through trade, investment, and connectivity projects. The neighbourhood policy operates through multiple frameworks: bilateral relationships addressing country-specific issues and opportunities; multilateral platforms like the South Asian Association for Regional Cooperation (SAARC) established in 1985 and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) formed in 1997; and sub-regional initiatives like the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicle Agreement.

Key policy doctrines have evolved over time, including the Gujral Doctrine of the 1990s emphasizing unilateral concessions to smaller neighbours, the Look East Policy (now Act East Policy) focusing on Southeast Asian engagement, and the current Neighbourhood First Policy prioritizing immediate neighbours in foreign policy calculations.

However, neighbourhood relations face significant challenges including unresolved territorial disputes, cross-border terrorism, water sharing conflicts, trade barriers, and great power competition. The complexity is heightened by the presence of two nuclear-armed neighbours (Pakistan and China) with whom India has fought multiple wars, making neighbourhood management a critical aspect of India's national security strategy.

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