SRINAGAR: India continues to deepen its diplomatic and economic engagements with neighbouring countries, guided by its ‘Neighbourhood First’ policy, which prioritises regional stability, cooperation, and connectivity. Through extensive infrastructure development, financial assistance, and humanitarian support, India is reinforcing its strategic presence in South Asia, fostering stronger bilateral relationships across the region, MEA revealed in the Lok Sabha offering details of how Delhi has engaged its neighbours.
India has provided significant humanitarian aid to Afghanistan, including 50,000 metric tonnes of wheat, 40,000 litres of Malathion pesticide, 300 tonnes of medical aid, and 28 tonnes of earthquake relief supplies. These were distributed through organisations such as the United Nations World Food Programme and the Afghan Red Crescent Society. Additionally, India has partnered with the United Nations Office on Drugs and Crime to support Afghan women affected by drug use, supplying essential hygiene kits, baby food, blankets, and medical aid.
On January 8, Foreign Secretary Vinay Kwatra met Amir Khan Muttaqi, Afghanistan’s Acting Foreign Minister, in Dubai to discuss development cooperation, signalling India’s ongoing commitment to Afghanistan despite the complex political situation.
Following the political transition in Bangladesh in August 2024, India maintained high-level bilateral engagements. Prime Minister Narendra Modi held discussions with Chief Adviser Prof Muhammad Yunus, while External Affairs Minister S Jaishankar met Foreign Affairs Adviser Touhid Hossain during the United Nations General Assembly in September 2024.
India has been actively supporting Bangladesh’s infrastructure development, including cross-border power, energy, and transport projects. The Akhaura-Agartala rail link and the dredging of Bangladesh’s inland waterways are being developed with Indian grant assistance. Additionally, in October 2024, a new Passenger Terminal Building and a second gate at the Petrapole Integrated Check Post in West Bengal were inaugurated to facilitate cross-border trade and immigration.
Further bolstering regional energy cooperation, India, Bangladesh, and Nepal signed a Trilateral Power Sale Agreement to transmit 40 megawatts of electricity from Nepal to Bangladesh through the Indian grid.
India has significantly increased its support for Bhutan, doubling assistance for the 13th Five-Year Plan to Rs 10,000 crore. This includes funding for Bhutan’s Economic Stimulus Package to aid economic recovery.
In December 2024, King Jigme Khesar Namgyel Wangchuck visited India and met Prime Minister Modi. He again visited in February 2025 to attend the Maha Kumbh Mela in Prayagraj. India is currently constructing two major hydroelectric projects in Bhutan—Punatsangchhu-I (1,200 MW) and Punatsangchhu-II (1,020 MW). The first two units of Punatsangchhu-II were commissioned in December 2024.
India has also supported Bhutan’s National Service Programme by releasing the last tranche of a Rs 1,500 crore concessionary loan for the construction of Gyalsung Academies.
India remains a crucial development partner for the Maldives, executing major infrastructure projects such as the Greater Male Connectivity Project, the redevelopment of Gan and Hanimaadhoo airports, and the construction of 4,000 social housing units.
During Maldivian President Mohamed Muizzu’s visit to India in October 2024, both leaders inaugurated 700 social housing units and the Hanimaadhoo airport runway. India also launched RuPay card services in the Maldives, deepening financial integration.
Additionally, a November 2024 memorandum of understanding established a framework for local currency transactions between the central banks of both nations. Plans to operationalise India’s Unified Payments Interface (UPI) in the Maldives are also in progress.
Despite political instability, India has continued its infrastructure and development initiatives in Myanmar. Key projects include the Kaladan Multi-Modal Transit Transport Project and the India-Myanmar-Thailand Trilateral Highway, aimed at improving connectivity and trade.
India is also implementing community development projects such as the construction of roads, schools, and healthcare centres under the High Impact Community Development Projects and Quick Impact Projects.
India’s development assistance to Nepal spans multiple sectors, including energy, health, education, and disaster relief. In October 2024, India provided over 25 tonnes of humanitarian aid to Nepal following severe floods and landslides.
In a major milestone for regional energy cooperation, India facilitated the first-ever trilateral power transaction from Nepal to Bangladesh in November 2024. Nepal also became the 101st member of the International Solar Alliance in September 2024, furthering renewable energy cooperation.
India continues to support Sri Lanka’s economic recovery and infrastructure development. During Sri Lankan President Anura Kumara Dissanayake’s state visit to India in December 2024, both nations adopted the joint statement ‘Fostering Partnerships for a Shared Future’.
As part of India’s commitments, Prime Minister Modi announced a financial assistance scheme for 100 Sri Lankan university students annually and extended a USD 14.9 million grant for railway signalling projects. Agreements were also signed to prevent double taxation and enhance civil service training in Sri Lanka.
During External Affairs Minister Jaishankar’s October 2024 visit to Colombo, India extended a USD 20.66 million grant to cover completed Line of Credit projects and pledged USD 61.5 million for modernising Kankesanthurai port. India also gifted 22 diesel locomotives to Sri Lanka’s railways.
India’s engagements with its neighbours under the ‘Neighbourhood First’ policy continue to be marked by extensive diplomatic outreach, strategic infrastructure investments, and humanitarian support. By fostering connectivity, economic integration, and development cooperation, India is reinforcing its leadership in the region while ensuring mutual prosperity and stability.
