India's 'Neighbourhood First' and 'Act East' policies have played a crucial role in enhancing bilateral relations with its neighbouring and Southeast Asian countries.
Prime Minister Narendra Modi's recent visit to Thailand to attend the 6th BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) Summit, followed by his trip to Sri Lanka, was notably successful.
His meetings with the leaders of Thailand, Myanmar, Bangladesh, Nepal, and Sri Lanka underscore how contemporary international relations are shifting. Unlike in the past-when alliances were often defined by long-standing ideological affinities-today's geopolitical landscape is shaped by dynamic and pragmatic engagement.
After participating in the BIMSTEC summit in Bangkok, PM Modi travelled to Sri Lanka from 4-6 April. The visit held symbolic importance, as he became the first foreign leader to be hosted by President Anura Kumara Dissanayake following his assumption of office in September last year.
The era of political and ideological romanticism has given way to a more practical, realpolitik-driven foreign policy. For a changing India, constructive engagement with frenemies has become a strategic imperative.
Expanding the Neighbourhood
Since PM Modi assumed office in 2014, India's regional relations have increasingly been shaped by multilateral and regional frameworks. Its approach has evolved from cautious liberal internationalism to strategic pragmatism-reflected in the policies of 'Neighbourhood First' and 'MAHASAGAR' (Mutual and Holistic Advancement for Security and Growth Across Regions).
India has also broadened its concept of the "extended neighbourhood" eastwards through its 'Act East' policy targeting ASEAN (Association of Southeast Asian Nations). The earlier 'Look East' initiative of 1992 was transformed into a more action-oriented approach in 2014. This shift has led to increased strategic cooperation, deeper trade relationships, and stronger security ties across South Asia, Southeast Asia, and the wider Indo-Pacific.
India's growing multilateral ties with South Asian neighbours (Bhutan, Bangladesh, India, Nepal, and Sri Lanka) and Southeast Asian countries like Myanmar and Thailand hold the potential to revitalise BIMSTEC. The forum presents a platform for collaboration across diverse sectors and industries.
Given the persistent dysfunction of SAARC (South Asian Association for Regional Cooperation), BIMSTEC offers a viable alternative for regional cooperation in South Asia and the Bay of Bengal region.
Thailand, a popular tourist destination for Indian travellers due to its visa-free access, has long lacked strong bilateral momentum with India. PM Modi's recent visit-the first in over a decade-marked a turning point, with the two nations agreeing to enhance strategic cooperation in areas such as defence, advanced technology, outer space, and security.
Key infrastructure projects connecting BIMSTEC nations pass through Myanmar, a country where the central administration has limited control in several regions. India's efforts, such as the 1,300-km India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project (linking Kolkata to Mizoram via Myanmar), have faced delays, partly due to unrest in Myanmar.
Despite the challenges, India has continued its engagement with the junta, maintaining economic relations, extending development assistance, and investing in land and power grid connectivity. Recently, India launched Operation Brahma to support earthquake relief efforts in Myanmar. PM Modi's meeting with military leader Min Aung Hlaing at the summit marked a step forward in bilateral engagement.
Diplomatic Agility - The Gamechanger
On the sidelines of the BIMSTEC summit, PM Modi met with Bangladesh's Chief Adviser Muhammad Yunus. The interaction allowed both sides to voice their concerns and could pave the way for easing tensions in future dialogues.
Despite the current strain, India's relationship with Bangladesh flourished over the past 15 years under Sheikh Hasina's Awami League government. India committed development assistance of nearly US$8 billion for infrastructure projects, including roads, railways, ports, and shipping.
The regime change in August 2024, following Hasina's departure to India and the formation of an interim government led by Yunus, disrupted this momentum. While some radical elements in Bangladesh lean towards Pakistan, economic imperatives are likely to keep Dhaka inclined towards maintaining ties with India-a sentiment the interim administration appears to acknowledge.
PM Modi also held talks with Nepalese Prime Minister KP Sharma Oli. According to media reports, Modi reaffirmed India's commitment to supporting democracy in Nepal. Oli, known for his closeness to China, has had a mixed relationship with India, recently accusing it of backing pro-monarchy protests that rocked Nepal on 28 March.
Recent years have seen political churn in India's neighbourhood. In countries like the Maldives, Sri Lanka, Bangladesh, and Nepal, regime changes and value clashes have tested India's diplomatic resolve.
The election of Maldives' China-leaning President Mohamed Muizzu in late 2023 was one such challenge. After months of fluctuating ties, Muizzu recalibrated. India responded with a US$400 million currency swap agreement and increased financial assistance to the Maldives by nearly 30% in the current fiscal year.
India's management of relations with Sri Lanka is another testament to its evolving neighbourhood strategy. During Sri Lanka's debt crisis in 2022, India extended US$4.5 billion in financial assistance, despite significant Chinese influence in the country.
Even after the electoral victory of a pro-China government last year, India remained engaged. PM Modi's recent visit to Colombo, marked by a grand reception, reflected the maturing of India-Sri Lanka relations under President Anura Dissanayake.
A key highlight of the visit was the signing of agreements involving India, the UAE, and Sri Lanka to develop Trincomalee as an energy hub. The project includes a multi-product pipeline and the redevelopment of an old oil tank farm-widely seen as a strategic counter to China's growing footprint.
PM Modi's back-to-back visits to Thailand and Sri Lanka signalled India's intention to cement its role as a regional influencer. His diplomacy suggests a conscious shift away from the 'big brother' image-an approach often resented by neighbouring states.
In today's multipolar world, the path forward lies in cooperative engagement where all nations pursue their interests while respecting those of others. Strategic diplomacy backed by economic collaboration remains the surest path to regional peace and prosperity.
(The author is Contributing Editor, NDTV)
Disclaimer: These are the personal opinions of the author
