Indian Strategic Interests in the Region — Latest Development

The recent electoral outcomes in West Bengal and Assam, coupled with leadership transitions in Dhaka and Kathmandu, present a unique opportunity for India to revitalize its engagement with its eastern neighbourhood. This alignment of political power between the Centre and key states creates the means for better coordination of local and national interests. The Neighbourhood First policy, with its emphasis on trade and connectivity, is poised to play a crucial role in this endeavour.

Historical Context and Challenges

India's neighbourhood policy has long been complicated by divergences between the Centre and border states. Regional leaders in bordering states have often become diplomatic spoilers, with an effective veto over Delhi's external engagement with neighbouring countries. The Look East Policy, initiated in the 1990s, aimed to promote economic cooperation and cultural exchange with Southeast Asia. However, its success was limited by the lack of coordination between the Centre and the states. The Act East Policy, launched in 2014, sought to address these challenges by focusing on the northeastern states as a gateway to Southeast Asia.

• ▸The Bangladesh-India Land Boundary Agreement (2015) has facilitated the exchange of enclaves and simplified border management.
• ▸The India-Myanmar-Thailand Trilateral Highway project aims to enhance connectivity and trade in the region.
• ▸The Kaladan Multi-Modal Transit Transport Project seeks to improve access to India's northeastern states through Myanmar.

Significance and Way Forward

The current political landscape offers a chance for India to revisit its regional policy and advance a more coherent, sustained, and productive engagement with its eastern neighbours. This requires sustained political tending of borderlands and a deeper understanding of the complex negotiations involved in issues such as migration, demographic changes, cross-border crime, and terrorism. The South Asian Association for Regional Cooperation (SAARC) framework provides a platform for regional cooperation, but its effectiveness has been limited by the lack of trust and cooperation among member states.

International Dimension and Geoeconomic Implications

The eastern neighbourhood policy has significant geoeconomic implications, with trade routes, energy corridors, and investment flows playing a crucial role. The Asia-Africa Growth Corridor initiative, launched in 2017, seeks to promote economic cooperation between India and Africa. The India-ASEAN Free Trade Area has facilitated the exchange of goods and services between India and Southeast Asia. However, the challenges remain formidable, and the success of these initiatives depends on the ability of India and its neighbours to navigate complex negotiations and build trust.

• ▸The Regional Comprehensive Economic Partnership (RCEP) has the potential to enhance trade and investment in the region.
• ▸The India-Bangladesh Friendship Pipeline project aims to improve energy security and cooperation between the two countries.
• ▸The Act East Policy has led to increased investment in the northeastern states, with a focus on infrastructure development and connectivity.

Conclusion

In conclusion, the current political landscape presents a rare opportunity for India to revitalize its engagement with its eastern neighbourhood. The Neighbourhood First policy, with its emphasis on trade and connectivity, is poised to play a crucial role in this endeavour. However, the challenges remain formidable, and the success of these initiatives depends on the ability of India and its neighbours to navigate complex negotiations and build trust.