India's neighbourhood policy: Time to move on

As the world's largest democracy strides confidently along its growth trajectory, it is increasingly clear that the traditional paradigms of regional engagement are no longer relevant. India's ascent is a testimony to its resilience and strategic planning. The nation's Gross Domestic Product (GDP) growth rate has consistently hovered around 7% over the past decade, placing it among the fastest growing major economies globally. Beyond mere economic metrics, India's social indicators also reflect significant advancements. The literacy rate has soared to over 74%, life expectancy has increased to 70 years, and substantial improvements have been made in healthcare, infrastructure and connectivity.

In stark contrast, India's neighbours lag considerably. Afghanistan, ravaged by prolonged conflict, has a literacy rate of just 37% and a life expectancy of 64 years. Pakistan, mired in political instability, has a GDP barely reaching 2%, a literacy rate of 59%, and severe health care deficits. Sri Lanka's economic crisis has left it reeling, while Nepal continues to struggle with political instability. The situation in Bangladesh, Myanmar and the Maldives is fragile, added to which the latter faces the adverse effects of the climate crisis.

Given such a volatile and diverse backdrop, the expectation for India to formulate a cohesive neighbourhood foreign policy is unrealistic and counterproductive. The institutional disparities between India and its neighbours are vast, leading to significant discord in bilateral as well as regional intergovernmental meetings. These capacity gaps are so extensive that meaningful dialogue often proves impossible.

In recent years, India has adeptly charted its course in foreign policy, maintaining a balanced stance without taking sides in global conflicts. Much like western countries have operated for decades, India has transitioned from an ideological stance to a pragmatic approach prioritising economic convenience and opportunity. This approach is evident in its nuanced positions on the Israel-Palestine conflict and the Russia-Ukraine war. In the case of Israel and Palestine, India has fostered strong diplomatic and economic ties with Israel, particularly in the defence and technology sectors, while simultaneously supporting the Palestinian cause for statehood at international forums.

Similarly, during the Russia-Ukraine conflict, India has refrained from outright condemnation of Russia, a long-time defence partner, while advocating for dialogue and peaceful resolution, thus maintaining its crucial energy and military supply lines from Russia. India's engagement with the United States (US) and China further highlights its independent stance. While deepening economic and strategic ties with the U.S., India continues to engage with China despite border tensions, emphasising economic cooperation and regional stability. Other instances, such as its relationships with Iran and Saudi Arabia and its active participation in multilateral groups like BRICS and Quad, illustrate India's policy of strategic pragmatism in a complex geopolitical landscape.

The transactional nature of India's foreign policy is now driven by economic and social growth imperatives, leaving little room for pandering to the whims of unstable neighbours. The view in Indian policy circles seems to be that if its neighbours have not drawn a lesson from the Chinese collaboration in Sri Lanka, Nepal and other developing nations around the world, then not much can be done to sway them towards India.

India's focus has shifted towards engaging mainly with neighbours who demonstrate a vision for their future, a willingness to work on their national agendas, and an alignment with the new global order. Periodic calls to strengthen the South Asian Association for Regional Cooperation (SAARC) and the Non-Aligned Movement (NAM) are out of sync with current realities.

The new generation of Indian diplomats embodies this pragmatic shift in India’s neighbourhood engagement. They are data-driven, savvy professionals, often from non-elitist backgrounds, who approach their roles with a results-oriented mindset. Unapologetically assertive, they reflect a national ethos that no longer feels subservient to western norms. This generational shift in diplomacy is poised to drive India's neighbourhood policy with an urgency and focus that prioritises tangible outcomes over traditional diplomatic courtesies.

As India deepens its high-level engagements with western powers and takes on significant roles in critical multilateral forums such as the World Trade Organization, it will become imperative to deploy its top diplomatic talent in these more productive arenas. This shift would mean that the best and brightest of India's diplomatic corps must be directed towards these global platforms where substantial opportunities and challenges await. Consequently, this would mean that the diplomatic investments in the neighbourhood will be mainly for maintaining the status quo.

Regionalism has thrived only in parts of the world where partner countries share similar starting lines and values. In Southeast Asia, the Association of South East Asian Nations has seen success due to its members' relative economic parity and political stability. In stark contrast, South Asia presents a fragmented landscape.

The harsh reality is that India's neighbourhood does not share the cohesive starting line or values necessary for effective regionalism. As India continues to surge, it must prioritise pragmatic and bilateral engagements over an unrealistic expectation of regional harmony.

Indian foreign minister S Jaishankar has earned widespread admiration at home for his outspoken and fearless advocacy of India's interests. His forthright communication style has set a new benchmark for future foreign ministers, regardless of which political party holds power. No mainstream political party is likely to deviate from India's newly adopted pragmatism, which mirrors the successful communication strategies of prosperous world powers.

This article is authored by Sunoor Verma, president, The Himalayan Dialogues and expert, leadership and strategic communication.