India's "Neighbourhood First" Policy
India's "Neighbourhood First" policy, articulated under successive governments and strongly emphasised by the Modi administration since 2014, prioritises India's immediate neighbourhood in its foreign policy and development cooperation.
- The policy covers SAARC nations (plus Myanmar and Maldives in practice): Bangladesh, Bhutan, Nepal, Sri Lanka, Maldives, Afghanistan, Pakistan.
- Key instruments: Lines of Credit (LoC) from EXIM Bank for infrastructure projects; development assistance; connectivity infrastructure; people-to-people ties.
- India's development assistance to neighbours: approximately $3–4 billion annually (excluding bilateral trade and FDI).
- SAARC (South Asian Association for Regional Cooperation): Founded 1985, HQ Kathmandu; 8 members. Largely paralysed by India-Pakistan tensions; India has pivoted to BIMSTEC as an alternative regional grouping.
- BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation): 7 members (India, Bangladesh, Nepal, Bhutan, Sri Lanka, Myanmar, Thailand); more functional than SAARC as it excludes Pakistan.
- India has provided emergency humanitarian assistance to Sri Lanka ($4 billion+ in 2022 economic crisis), Maldives (Operation Cactus 1988, bilateral assistance 2023), and Bangladesh (post-1971 and ongoing development cooperation).
● Tracked since March 10, 2026 · last seen June 09, 2026 · updates as the daily brief publishes
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