Lesson 61 of 76 8 min Free
India's Foreign Policy: Principles and Neighbourhood
GS2 · International Relations
Core principles
- Panchsheel (1954): five principles of peaceful coexistence, first set out in the India–China agreement on Tibet. They are mutual respect for territorial integrity and sovereignty, non-aggression, non-interference, equality and mutual benefit, and peaceful coexistence.
- Non-Alignment: not joining either Cold War bloc. The Non-Aligned Movement (NAM) was founded at the Belgrade summit (1961), led by Nehru, Nasser (Egypt), Tito (Yugoslavia), Sukarno (Indonesia) and Nkrumah (Ghana).
- Today India speaks of strategic autonomy – working with many partners on different issues ("multi-alignment").
Policies to remember
| Policy | Meaning |
|---|---|
| Look East (1991) → Act East (2014) | Closer economic, strategic and cultural ties with South-East and East Asia; North-East India as the gateway |
| Neighbourhood First | Priority to the neighbours through connectivity, trade and aid |
| SAGAR (2015) | "Security and Growth for All in the Region" – the Indian Ocean vision |
| Gujral Doctrine (1996) | Generosity to smaller neighbours without asking for reciprocity |
Regional groupings
| Group | Year | Members/notes |
|---|---|---|
| SAARC | 1985 (Dhaka) | 8 members: India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives, Afghanistan; Secretariat in Kathmandu |
| BIMSTEC | 1997 (Bangkok Declaration) | 7 members: Bangladesh, Bhutan, India, Nepal, Sri Lanka, Myanmar, Thailand; links South and South-East Asia |
| ASEAN | 1967 (Bangkok) | India is a dialogue partner; ASEAN–India relations are a key part of Act East |
| Indian Ocean Rim Association | 1997 | Indian Ocean littoral states |
India and its neighbours – one key issue each
- China: border dispute (the LAC), trade imbalance; also BRICS and SCO partners.
- Pakistan: cross-border terrorism, Jammu and Kashmir, the Indus Waters Treaty.
- Nepal: open border (1950 Treaty of Peace and Friendship); hydropower.
- Bangladesh: the Land Boundary Agreement (2015) settled enclaves; Teesta water sharing is pending.
- Sri Lanka: fishermen's issues, Tamil concerns, and Indian development aid.
Background: the foundations
India's foreign policy rests on:
- Article 51 (promote international peace, respect international law);
- Panchsheel (1954 – mutual respect for sovereignty, non-aggression, non-interference, equality and mutual benefit, peaceful co-existence);
- non-alignment, which has evolved into "strategic autonomy" and "multi-alignment" – working with many partners without joining military blocs;
- the civilisational idea of Vasudhaiva Kutumbakam ("the world is one family" – the theme of India's G20 presidency in 2023: "One Earth, One Family, One Future").
Key doctrines and policies
| Policy | Meaning |
|---|---|
| Neighbourhood First | Priority to South Asian neighbours: connectivity, aid, trade |
| Act East (2014, upgraded from Look East 1991) | ASEAN, Japan, Indo-Pacific; the north-east as gateway |
| SAGAR (2015) → MAHASAGAR (2025) | Security and Growth for All in the Region – Indian Ocean partnerships |
| Gujral Doctrine (1996) | Non-reciprocal generosity to smaller neighbours |
| Link/Think West | Gulf – energy, diaspora (about 9 million Indians), investment |
| Connect Central Asia | Energy, Chabahar, INSTC |
The neighbourhood – one country at a time
| Country | Opportunities | Challenges |
|---|---|---|
| Pakistan | Trade, people-to-people ties, the Kartarpur corridor (2019) | Cross-border terrorism; the Indus Waters Treaty was put "in abeyance" by India in 2025 after the Pahalgam attack |
| China | Largest trading partners in goods; climate and BRICS cooperation | The LAC (Galwan clash 2020; disengagement agreements in 2024), trade deficit, the China–Pakistan Economic Corridor through PoK, the dam on the Yarlung Tsangpo |
| Nepal | Open border (1950 treaty), hydropower, Gorkha soldiers | Kalapani–Lipulekh map dispute (2020), Chinese presence |
| Bhutan | Hydropower (Chukha, Mangdechhu), closest partner | The Doklam standoff (2017) |
| Bangladesh | The Land Boundary Agreement (2015) settled enclaves; trade, connectivity, energy | Teesta water sharing; illegal migration; political change after 2024 |
| Sri Lanka | Economic aid during the 2022 crisis (about $4 billion) | Tamil issue; fishermen disputes; Chinese ports (Hambantota) |
| Maldives | Security, tourism | "India Out" politics; troops replaced by civilians in 2024; relations later improved with aid |
| Myanmar | Kaladan multimodal project, the Trilateral Highway | Military rule since 2021; refugees in Mizoram and Manipur |
| Afghanistan | Development projects (Salma Dam, Parliament building) | The Taliban regime; India engages cautiously |
Regional groupings
- SAARC (1985, eight members) is largely stalled since the 2016 Islamabad summit was cancelled.
- BIMSTEC (1997, seven members: Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, Thailand) gained importance; its Charter came into force in 2024.
- The BBIN motor vehicle agreement (Bhutan is not yet on board).
- The Colombo Security Conclave (maritime security).
Causes of difficulty and effects
Causes: asymmetry (India's size creates fear of "big brother"), domestic politics in neighbouring countries, the China factor (debt and infrastructure through BRI), cross-border ethnic links, and slow project delivery by India.
Effects: competition for influence; risk of strategic encirclement ("string of pearls"); and the need for faster, people-centred projects.
Case study: the India–Bangladesh Land Boundary Agreement (2015)
The 100th Constitutional Amendment ratified the 1974 agreement, which settled 162 enclaves – 111 Indian enclaves in Bangladesh and 51 Bangladeshi enclaves in India. Around 50,000 stateless residents chose their citizenship. It shows that long-standing border disputes can be solved peacefully through political will and parliamentary consensus. It was also a confidence-building model for other neighbours.
Common misconceptions
- "Non-alignment means neutrality." – It means independence of judgement, not staying silent; India took clear positions (decolonisation, apartheid).
- "Strategic autonomy rules out partnerships." – India is in the Quad (with the US, Japan and Australia) and in SCO/BRICS at the same time – this is multi-alignment.
- "SAARC and BIMSTEC have the same members." – BIMSTEC includes Myanmar and Thailand but not Pakistan, Afghanistan or the Maldives.
How UPSC asks it
Mains themes include India's relations with a specific neighbour, Neighbourhood First, China's growing presence in South Asia, water-sharing issues, and BIMSTEC vs SAARC.
Mains answer framework
Q-type: "China's growing footprint in South Asia poses challenges for India. How should India respond?"
- Intro: BRI, ports, debt, defence ties (Hambantota, Gwadar, Kyaukphyu).
- Challenges: strategic encirclement, debt-trap concerns, influence in domestic politics, competition in projects.
- Response: deliver projects on time, lines of credit and grants, connectivity (BBIN, Kaladan), soft power (education, health, culture), regional groupings, partnerships (Quad, Japan in the north-east), crisis help (Sri Lanka 2022).
- Conclusion: generous, reliable neighbour – "first responder" in the region.
Neighbourhood at a glance
| Country | Key issues and cooperation |
|---|---|
| Pakistan | Terrorism, Kashmir, Indus Waters Treaty (1960), trade suspended |
| China | Boundary dispute (LAC), trade imbalance, competition in the region, 2020 Galwan clash |
| Nepal | Open border (1950 treaty), hydropower, boundary issue (Kalapani–Lipulekh) |
| Bangladesh | Land Boundary Agreement (2015), Teesta water, connectivity, energy trade |
| Bhutan | Hydropower partnership, Doklam (2017) |
| Sri Lanka | Tamil issue, fishermen, Chinese investment, economic assistance in 2022 crisis |
| Maldives | Security cooperation, development projects |
| Myanmar | Act East gateway, Kaladan project, border security |
| Afghanistan | Development assistance, humanitarian aid |
Policy frameworks
- Neighbourhood First: priority to connectivity, trade, and development partnerships.
- Act East Policy (2014, upgraded from Look East of 1991): ASEAN, Indo-Pacific.
- SAGAR (Security and Growth for All in the Region, 2015): maritime cooperation in the Indian Ocean.
- Gujral Doctrine (1996–97): non-reciprocal generosity towards smaller neighbours.
Mains practice question
Q. How can India strengthen its position in South Asia amid China's growing influence? Outline: deliver projects on time; trade and energy connectivity; respect for neighbours' sensitivities; development finance and capacity building; people-to-people ties; regional groupings such as BIMSTEC when SAARC is stalled.
Check your understanding
- What is strategic autonomy? The freedom to take foreign-policy decisions in national interest without being bound to any bloc.
- What is BIMSTEC? A regional grouping of Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand around the Bay of Bengal.
- What is Panchsheel? Five principles of peaceful coexistence agreed by India and China in 1954.
⚡ Quick revision
- Panchsheel 1954 (India–China); NAM Belgrade 1961
- Look East 1991 → Act East 2014; SAGAR 2015
- SAARC 1985, Secretariat Kathmandu, 8 members; BIMSTEC 1997, 7 members
- LBA with Bangladesh 2015
Panchsheel refers to the Five Principles of Peaceful Coexistence, first written into the India–China Agreement on Trade and Intercourse with the Tibet Region, signed on 29 April 1954. They became a guiding idea of Nehru's foreign policy and of the Non-Aligned Movement.The quality of being consistently guided by sound moral principles, so that one's values, words and actions match, in private and in public, even when no one is watching and when it is costly to do so.The Non-Aligned Movement (NAM) is a forum of developing countries that chose not to formally align with either the United States-led or the Soviet-led bloc during the Cold War; founded at the Belgrade summit of 1961, it now has 120 member states and is the largest grouping of states after the United Nations.Strategic autonomy is the principle that a country should keep the freedom to make its own foreign and security policy choices according to its national interest, without being bound to any single power or bloc; in India it is seen as the successor to non-alignment and is often practised today as "multi-alignment" with many partners.Neighbourhood First is India's policy, launched in 2014, of giving priority to relations with its immediate neighbours through connectivity, trade, development assistance, security cooperation and people-to-people ties, with India acting as a first responder in crises.SAARC, the South Asian Association for Regional Cooperation, is an organisation of eight South Asian countries founded in Dhaka in 1985 to promote economic and social cooperation. It has been largely inactive since 2016, when its summit in Islamabad was called off after the Uri attack.BIMSTEC is a regional grouping of seven countries around the Bay of Bengal: Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand. Formed in 1997, it links South and Southeast Asia and has become India's preferred regional platform as SAARC has stalled.India's engagement with the ten-member Association of Southeast Asian Nations under the Act East Policy. Full coverage: India, Japan, Australia, ASEAN and the Indo-Pacific.The Line of Actual Control (LAC) is the de facto line separating areas controlled by India and China along their disputed border. It is not agreed or marked on the ground, which leads to differing perceptions and periodic face-offs.Grouping of major emerging economies that began with Brazil, Russia, India, China and South Africa and has since expanded. Full coverage: India, Central Asia and Eurasian Groupings: SCO and BRICS.Eurasian security and economic grouping; India became a full member in 2017. Full coverage: India, Central Asia and Eurasian Groupings: SCO and BRICS.Terrorist violence planned or supported from across an international border. Full coverage: Terrorism and Insurgency: J&K and the Northeast.
