India and Its Neighbourhood
India and Its Neighbourhood
India is land where people believe in cooperation and maintain healthy relationship with its
neighbour. India has always been known as a “peace-loving country”. India has official political
relations with most nations. India is considered as the world's second most populous and democratic
country. Its economy is the fastest growing around the world. With the world's eighth largest
military expenditure, third largest armed force, seventh largest economy by nominal rates and third
largest economy in terms of purchasing power parity. India is a regional power, an embryonic global
power and has capability to become superpower. India has a developing international influence and
a prominent voice in global businesses.
India is a progressing industrialised nation. It has a history of partnership with several countries, is a
component of the BRICS and a major part of developing world. India was one of the founding
members of several international organisations, most notably the United Nations, the Asian
Development Bank, G-20 major economies and the founder of the Non-Aligned Movement. India
has also played an important and influential role in other international organisations like East Asia
Summit, World Trade Organisation, International Monetary Fund (IMF), G8+5 and IBSA Dialogue
Forum. Locally, India is a part of SAARC and BIMSTEC.
Foreign policy of India has always regarded the concept of neighbourhood as one of broadening
concentric circles, around a central axis of historical and cultural commonalities. Millions people of
Indian origin, live and work abroad and constitute an important link with the mother country. An
important role of India's foreign policy has been to guarantee their welfare and wellbeing within the
framework of the laws of the country where they live.
The Ministry of External Affairs is the Indian government's agency look after the foreign relations
of India. The Minister of External Affairs holds cabinet rank as a member of the Council of
Ministers. Sushma Swaraj is current Minister of External Affairs. When reviewing historical
approach, India's international influence varied over the years after independence. Indian prestige
and moral authority were high in the 1950s and enabled the acquisition of developmental assistance
from both East and West. Although the prestige stemmed from India's nonaligned stance, the nation
was incapable to prevent Cold War politics from becoming intertwined with interstate relations in
South Asia.
Bangladesh:
Indian government believe in maintaining good relations with neighbouring countries. Bangladesh
is one of its close neighbour. India had recognised Bangladesh as a separate and independent state,
did so on 6 December 1971. India fought together with the Bangladeshis to liberate Bangladesh
from West Pakistan in 1971. Bangladesh and India share a common tradition. They are pleasant and
both nations make great efforts to solve the problem of waters of Ganga at Farakka and Tin Bigha
corridor in a spirit of give and take. India has helped Bangladesh in the recovery of cyclone victims
in 1985. In broad sense, the relations between the two nations continue to be amiable. But major
issues in relation with these two nation is that of about 145,000 Chakma refugees who crossed over
to India. Bangladesh's relationship with India has been difficult in terms of irrigation and land
border disputes post 1976. Nevertheless, India has maintained favourable relationship with
Bangladesh during governments formed by the Awami League in 1972 and 1996. The solutions of
land and maritime disputes have taken out nuisances in ties.
At the beginning, India's relations with Bangladesh have not been stronger because of India's
absolute support for independence and opposition against Pakistan in 1971. During the
independence war, many refugees fled to India. When the struggle of resistance matured in
November 1971, India also interfered militarily and has helped in bring international attention to the
issue through Indira Gandhi's visit to Washington, D.C. Afterwards India furnished relief and
reconstruction aid. India also withdrew its military from the land of Bangladesh when Sheikh
Mujibur Rahman requested Indira Gandhi to do so during the latter's visit to Dhaka in 1972. Indo-
Bangladesh relations have been somewhat less friendly since the fall of Mujib government in
August 1975. But as the time passed, many issues emerged such as South Talpatti Island, the Tin
Bigha Corridor and access to Nepal, the Farakka Barrage and water sharing, border conflicts near
Tripura and the construction of a fence along most of the border which India explains as security
provision against migrants, insurgents and terrorists. Bilateral relations began to friendly in 1996,
due to soft Indian foreign policy and the new Awami League Government. A 30-year water-sharing
agreement for the Ganges River was signed in December 1996, after an earlier bilateral water-
sharing agreement for the Ganges River lapsed in 1988. Both nations also have cooperated on the
issue of flood warning and readiness. The Bangladesh Government and tribal insurgents signed a
peace accord in December 1997, which allowed for the return of tribal refugees who had escaped
into India, beginning in 1986, to escape violence caused by an insurgency in their homeland in the
Chittagong Hill Tracts. The Bangladesh Army maintains a very strong presence in the area
presently. The army is progressively concerned about problem of cultivation of illegal drugs.
There are also small pieces of land along the border region that Bangladesh is tactfully trying to
reclaim. Padua, part of Sylhet Division before 1971, has been under Indian control since the war in
1971. This small strip of land was re-occupied by the BDR in 2001, but later given back to India
after Bangladesh government decided to solve the problem through diplomatic negotiations. The
Indian New Moore Island no longer exists, but Bangladesh repeatedly claims it to be part of the
Satkhira district of Bangladesh.
India has increasingly complained that Bangladesh does not secure its border well. It fears an
increasing flow of poor Bangladeshis and it accuses Bangladesh of sheltering Indian separatist
groups like ULFA and alleged terrorist groups. The Bangladesh government has snubbed to accept
these allegations. India estimates that over 20 million Bangladeshis are living unlawfully in India.
Since 2002, India has been building an India - Bangladesh Fence along much of the 2500 mile
border. The failure to resolve migration disputes bears a human cost for illegal migrants, such as
imprisonment and health risks, namely HIV/Aids. Presently, India’s Prime Minister Narendra Modi
and his Bangladeshi counterpart Sheikh Hasina have completed a revolutionary deal redrawing their
disordered shared border and there by solving disputes between India and Bangladesh. Bangladesh
and India have signed a historic agreement to simplify their border by exchanging more than 150
enclaves of land.
Bangladesh also offer India transit route to travel through Bangladesh to its North East states. India
and Bangladesh also have free trade agreement in June 7, 2015. Both nations solved its border
dispute on June 6, 2015. To connect Kolkata with Tripura via Bangladesh through railway, the
Union Government on 10 February 2016 sanctioned about 580 crore rupees. The funds were
sanctioned for constructing the 15-kilometer railway track between Kolkata and Tripura. The project
that is expected to be completed by 2017 will pass through Bangladesh. The Agartala-Akhaura rail-
link between Indian Railway and Bangladesh Railway will reduce the current 1700 km road
distance between Kolkata to Agartala via Siliguri to just 350-kilometer by railway. These projects
are high level and on Prime Minister's 'Act East’ Policy, and is anticipated to increase connectivity
and increase trade between India and Bangladesh.
Nepal:
Nepal is also friendly neighbour country of India. There has been a long tradition of free movement
of people across the borders. Nepal has an area of 147,181 sq. kms and a population of 29 million. It
shares a border of over 1850 kms in the east, south and west with five Indian States – Sikkim, West
Bengal, Bihar, Uttar Pradesh and Uttarakhand and in the north with the Tibet Autonomous Region
of the People's Republic of China. Relations between India and Nepal are strong though there are
some troubles stemming from border disputes, geography, economics, and the problems in-built in
big power-small power relations, and common ethnic and linguistic identities that overlap the two
countries' borders. Mainly relation between India and Nepal are based on century’s traditional
cultural ties. India has supported a lot to Nepal in its development projects. The trade and transit
treaty issue created some differences between the two neighbours. But the issue has since been
resolved. Fortunately, these two neighbours have always good understanding on disputed matters
and they resolve intelligently.
In 1950 New Delhi and Kathmandu introduced their intertwined relationship with the Treaty of
Peace and Friendship and accompanying secret letters that defined security relations between the
two countries, and an agreement governing both bilateral trade and trade transiting Indian land.
According to the 1950 treaty and letters, "neither government shall tolerate any threat to the security
of the other by a foreign aggressor" and obligated both sides "to inform each other of any serious
friction or misunderstanding with any neighbouring state likely to cause any breach in the friendly
relations subsisting between the two governments", and also granted the Indian and Nepali people’s
right to get involved in any economic activity such as work and business related activity in each
other's region. Such treaties solidified relationship between India and Nepal that granted Nepalese in
India the same economic and educational opportunities as Indian inhabitants.
Relations between India and Nepal weakened during 1989 when India imposed a 13-month-long
economic barrier of Nepal. But Indian PM Narendra Modi visited Nepal in 2014 and normalized
relations. This clearly indicates that the Modi government wants to maintain affable bilateral ties
with the Nepalese government. According to news report, “Prime Minister Narendra Modi wound
up his "historic" visit to Nepal with a slew of sops focusing on the 4 Cs cooperation, connectivity,
culture and constitution to enhance bilateral ties.”
There are regular exchanges of senior leader’s visits and interactions between India and Nepal.
Nepalese Prime Minister Shri Sushil Koirala visited India to attend the swearing-in ceremony of
Prime Minister Shri Narendra Modi on 26 May 2014. In 2014, Prime Minister Shri Narendra Modi
visited Nepal twice, in August for a bilateral visit and in November for the SAARC Summit, during
which several bilateral agreements were signed. India and Nepal have several bilateral institutional
dialogue mechanisms, including the India-Nepal Joint Commission co-chaired by External Affairs
Minister of India and Foreign Minister of Nepal.
In devastating earthquake occurred in Nepal on 25 April 2015, the Government of India swiftly
dispatched National Disaster Response Force (NDRF) teams and special aircrafts with rescue and
relief materials to Nepal.
In 2015, a blockade of the India-Nepal border has effected relations. The barrier is led by ethnic
communities annoyed by Nepal's recently promulgated new constitution. However, the Nepalese
government blamed India of deliberately worsening the embargo, but India denies these allegations.
On political front, with the commencement of the 12-Point understanding reached between the
Seven Party Alliance and the Maoists at Delhi in November 2005, Government of India has
applauded the roadmap laid down by the historic Comprehensive Peace Agreement of November
2006 towards political stabilization in Nepal, through peaceful reconciliation and inclusive
democratic processes. India has steadily responded with a sense of urgency to the needs of the
people and Government of Nepal in ensuring the success of the peace process and
institutionalization of multiparty democracy through the framing of a new Constitution by a duly
elected Constituent Assembly. India work on the policy that only an inclusive Constitution with the
broadest possible consensus by taking on board all stakeholders would result in durable peace and
stability in Nepal. India’s major interest in Nepal is a united Nepal’s peace and stability which has a
bearing on India as well because of the long and open border shared between India and Nepal.
India and Nepal has strong economic ties also. Since 1996, Nepal’s exports to India have grown
rapidly and bilateral trade more than seven times. The main items of exports from India to Nepal are
petroleum products, motor vehicles and spare parts, billets, machinery and spares, medicines, hot
rolled sheets, wires, coal, cement, threads and chemicals. The main items of exports from Nepal to
India are polyester yarn, textiles, jute goods, threads, zinc sheet, packaged juice, cardamom, G.I.
pipe, copper wire, shoes and sandals, stones and sand. Indian firms hugely invested in Nepal. There
are approximately 150 operating Indian ventures in Nepal involved in manufacturing, services
(banking, insurance, dry port, education and telecom), power sector and tourism industries. Some
big Indian investors include ITC, Dabur India, Hindustan Unilever, VSNL, TCIL, MTNL, State
Bank of India, Punjab National Bank, Life Insurance Corporation of India, Asian Paints, CONCOR,
GMR India, IL&FS, Manipal Group, MIT Group Holdings, Nupur International, Transworld Group,
Patel Engineering, Bhilwara Energy, Bhushan Group, Feedback Ventures, RJ Corp, KSK Energy,
Berger Paints, Essel Infra Project Ltd. and Tata Power.
Government of India offers significant financial and technical development assistance to Nepal,
which is a broad-based programme focusing on creation of infrastructure at the grass-root level,
under which various projects have been implemented in the fields of infrastructure, health, water
resources, education and rural & community development. Recently, India has been assisting Nepal
in development of border infrastructure through development of roads in the Terai areas.
Development of cross-border rail links at Jogbani–Biratnagar, Jaynagar-Bardibas, Nepalgunj Road-
Nepalgunj, Nautanwa-Bhairhawa, and New Jalpaigudi-Kakarbhitta; and establishment of Integrated
Check Posts at Raxaul-Birgunj, Sunauli-Bhairhawa, Jogbani-Biratnagar, and Nepalgunj Road-
Nepalgunj.
India has also helped Nepal in the field of education and prove to be best neighbour. India’s
contribution to the development of human resources in Nepal has been one of the major aspects of
bilateral cooperation.
In cultural arena, Government of India initiatives to promote people-to-people contacts in the area
of art & culture, academics and media include cultural programmes, symposia and events organized
in partnership with different local bodies of Nepal, as well as conferences and seminars in Hindi.
Assistance is also provided to several India-Nepal Friendship Organizations working to promote
Indian culture and India-Nepal bilateral relations.
Sri Lanka:
India and Sri Lanka has conventionally close to each other. Huge numbers of Tamil of Indian origin
live in Sri Lanka. This created cultural problem in Sri Lanka. Although the problem of the people of
Indian origin settled in Sri Lanka was solved by P.M. Lal Bahadur Shastri in a friendly manner, but
the killings of the Tamil in that country worsen the relations between the two countries. With the
signing of Indo-Sri Lanka Accord in 1987 relations improved. The Indian Peace-keeping Forces
have returned to India after having performed their job. Assassination of Rajiv Gandhi by LTTE
activities put the relations between the two countries in melancholies.
Though bilateral relations between Sri Lanka and India have been generally pleasant, but were
affected by the Sri Lankan Civil War and by the failure of Indian intervention during the civil war as
well as India's support for Tamil Tiger militants. India is Sri Lanka's only neighbour, separated by
the Palk Strait. Both nations occupy a strategic position in South Asia and have sought to build a
common security authority in the Indian Ocean.
Over the years, India-Sri Lanka relations have undergone major transformation. Political relations
are close, trade and investments have increased radically, infrastructural linkages are continually
being increased, defence collaboration has increased and there is broad-based improvement across
all sectors of bilateral cooperation. India was the first nation to respond to Sri Lanka's request for
assistance after the tsunami in December 2004. In July 2006, India evacuated 430 Sri Lankan
nationals from Lebanon, first to Cyprus by Indian Navy ships and then to Delhi and Colombo by
special Air India flights.
Political relations are built through high-level exchanges of visits. Prof. G.L.P eiris, Minister of
External Affairs of Sri Lanka visited India for the eighth meeting of the India-Sri Lanka Joint
Commission which was held on 22 January 2013. Former President of India, Dr. A.P.J. Abdul
Kalam visited Sri Lanka from 20-24 January 2012 to launch the ‘National Plan for a Trilingual Sri
Lanka’, at the invitation of the President of Sri Lanka.
There is an agreement within the Sri Lankan polity on the importance of India in Sri Lanka's
external relations matrix. Both the major political parties in Sri Lanka, the Sri Lanka Freedom Party
and the United Nationalist Party have contributed to the rapid development of bilateral relations in
the last many years. Sri Lanka has supported India's contention to the permanent membership of the
UN Security Council.
News report have shown that from being in the middle of a disturbed neighbourhood, under the
leadership of Prime Minister Narendra Modi, India’s relations with its neighbours have improved.
India and Sri Lanka has also close commercial relations. India and Sri Lanka has good trade and
investment relationship, with bilateral trade growing speedily in last decade and a numerous big
Indian private sector companies investing in Sri Lanka and establishing a presence in this country.
Sri Lanka is India's largest trade partner in South Asia. India in turn is Sri Lanka's largest trade
partner globally. Trade between the two countries grew particularly rapidly after the entry into force
of the India-Sri Lanka Free Trade Agreement in March 2000.
It is assessed that both nations have built upon an inheritance of intellectual, cultural, religious and
linguistic intercourse. Relations between the two countries have also matured and diversified with
the passage of time, encompassing all areas of contemporary relevance. Recently, the relationship
has been marked by close contacts at the highest political level, growing trade and investment,
cooperation in the fields of development, education, culture and defence, as well as a broad
understanding on major issues of international interest.
To summarize, India is a huge country with manifold cultures. It has high status in the South East
Asia. India has vast cultural advancement therefore nation has maintained good and sociable
relations with all its neighbours. India’s foreign policy is to maintain peace, freedom and mutual co-
operation among the nations. Its foreign policy is based on the philosophies of Panchsheela,
nonalignment disarmament. India’s immediate neighbours are Sri Lanka, Pakistan, Bangladesh,
Nepal, Bhutan, Maldives, Burma, China and Afghanistan. India has cordial historical, religious,
economic, ethnic and linguistic relationships with all of these states. Preferably, India would prefer a
peaceful, wealthy neighbourhood responsive to its own needs and wishes. But from the outset of its
history as an independent country, India’s major challenges have included the promotion of internal
cohesion and the management of its often troubled relations with its neighbouring countries, the two
often being closely linked, for example in relation to Pakistan, Nepal and Sri Lanka. In India,
political leaders and populace always look forward for friendly relationship with neighbouring
countries, though many conflicts emerged in past.