What is the ‘Look East Policy’ and ‘Neighborhood First’ Policy? Why Are India’s Relations with Neighboring Countries Deteriorating in 2025?

India’s foreign policy has evolved significantly since the early 1990s, especially through two strategic doctrines—the ‘Look East Policy’ and the ‘Neighborhood First’ Policy. These policies were crafted to strengthen India’s regional and global presence. However, in recent times, India’s relations with several neighboring countries have shown signs of strain. This article explores both policies and delves into the reasons behind this diplomatic deterioration.

Look East Policy

India’s Look East Policy was formulated to enhance its economic and strategic ties with Southeast Asian countries. Initially launched under Prime Minister P. V. Narasimha Rao (1991–1996) and further advanced by Atal Bihari Vajpayee (1998–2004), this policy aimed to reposition India as a key regional power and counterbalance China’s growing influence in Asia.

Since the Sino-Indian War of 1962, India and China have remained strategic competitors. China’s strong military and economic partnerships with India’s neighbors—particularly Pakistan, Nepal, and Bangladesh—have increased the urgency for India to assert itself in the region.

Today, around 45% of India’s foreign trade involves South and East Asian countries. Although the Look East Policy has improved regional engagement, India still lags behind China in trade dominance. Additionally, India’s pragmatic relations with Myanmar’s military regime—while serving national interest—have drawn criticism due to perceived silence on human rights violations.

Look East Policy
Look East Policy

Neighborhood First Policy

Introduced by Prime Minister Narendra Modi in 2014, the Neighborhood First Policy emphasizes closer ties with South Asian nations—Nepal, Bangladesh, Sri Lanka, Bhutan, Myanmar, and others. It complements the Look East and Look West policies by focusing on fostering peace, security, and economic cooperation within immediate proximity.

Modi’s decision to invite all SAARC leaders, including then-Pakistani PM Nawaz Sharif, to his swearing-in ceremony symbolized a renewed diplomatic outreach. Since then, the government has consistently declared Neighborhood First as the cornerstone of India’s foreign policy. The idea is that India will prioritize regional harmony and give special attention to shared development goals.

Why Are India’s Relations with Its Neighbors Deteriorating?

Despite ambitious policies, India’s ties with several neighboring countries have worsened in recent years. The reasons are complex, involving both strategic missteps and perception issues. Below are some key factors:

1. Policy Flaws from the Start

The Neighborhood First Policy appeared rushed and reactive, rather than strategic. For instance, after inviting Pakistan’s prime minister, India denied Pakistani delegates a meeting with Hurriyat leaders—sending mixed signals. Such inconsistent diplomacy raised doubts about India’s genuine commitment to regional peace.

2. Short-Term Interests Over Long-Term Vision

India’s engagements have often lacked long-term strategy. Relations with Maldives, Nepal, and Sri Lanka show a pattern of short-sighted diplomacy, where narrow national interests override sustainable regional cooperation.

3. Emphasis on Hindu Identity

The rise of Hindu nationalism in India’s domestic and foreign policy—through laws like the Citizenship Amendment Act (CAA)—has negatively impacted relations with Muslim-majority neighbors, especially Bangladesh. The regular political usage of “Bangladeshi” as a euphemism for illegal migrants has created diplomatic friction and public resentment.

4. Government-to-Government Ties, Not People-to-People

India has focused heavily on maintaining friendly ties with ruling governments, while often ignoring public opinion. In countries like Nepal, Bangladesh, and the Maldives, this has led to a perception of India as a regional bully, causing deepening anti-India sentiments among citizens.

5. Over-Reliance on Intelligence Agencies

India’s foreign policy appears increasingly guided by intelligence assessments, often sidelining traditional diplomatic channels. While intelligence is important, over-dependence can lead to misjudgments and strained relationships, especially when public diplomacy is neglected.

6. Interference by Political and Ideological Groups

In recent years, foreign policy decisions have been influenced not just by the External Affairs Ministry, but also by BJP and RSS leaders. Figures like Ram Madhav have reportedly played a role in shaping India’s Nepal and Bangladesh strategy—raising concerns about the centralization and politicization of diplomacy.

7. Perceived Regional Hegemony

Smaller South Asian countries often view India’s ambitions as a push for regional dominance, not partnership. India’s failure to engage in equal, respectful dialogue has led to distrust and diplomatic distancing.

Look East Policy
Look East Policy

8. China Containment Strategy

India’s policies are often seen as part of a broader strategy to counter China’s influence, particularly through China’s Belt and Road Initiative (BRI). However, many of India’s neighbors see greater economic opportunities with China, and India lacks the financial resources to compete effectively.

9. Limited Economic Muscle

Unlike China, India does not have “deep pockets.” Its limited capacity to provide large-scale investments or aid means it struggles to match China’s economic diplomacy. Despite historical and cultural ties, many neighbors gravitate toward China’s financial incentives.

10. Functional and Structural Challenges

India’s neighbors face both functional grievances (e.g., Muslim persecution affecting sentiment in Bangladesh) and structural tensions (e.g., perceptions of Indian hegemony). These dual challenges require nuanced, respectful diplomacy—something India’s current foreign policy often lacks.

Conclusion

India’s Look East and Neighborhood First policies were designed to establish India as a major regional player and secure strategic partnerships. However, inconsistencies in implementation, rising domestic nationalism, and economic constraints have contributed to growing mistrust and alienation among its neighbors.

To repair and strengthen regional ties, India must move beyond slogans and engage in thoughtful, people-centered, and long-term diplomacy—grounded in mutual respect, shared prosperity, and strategic consistency.

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