Standing Committee Report Summary

India’s Neighbourhood First Policy

▪ The Standing Committee on External Affairs It recommended the Ministry of External Affairs to
(Chair: Mr. P.P. Chaudhary) submitted its report take effective steps for timely completion of such
on ‘India’s Neighbourhood First Policy’, on July LOC projects through regular monitoring.
25, 2023. The concept of the Neighbourhood First Development projects in neighbouring countries
Policy came into being in 2008. It was conceived should be completed in a timeframe by
to bolster relations with certain priority countries strengthening of the Joint Project Monitoring
such as Afghanistan, Bangladesh, Maldives, Committees and oversight mechanism.
Myanmar, Nepal, Pakistan and Sri Lanka. Key
▪ Defence and Maritime Security: Defence
observations and recommendations include:
cooperation is key to India’s bilateral relationship
▪ Terrorism and Illegal Migration: The with its neighbouring countries. Joint military
Committee noted that over the last three decades exercises are conducted with various countries
India has faced threats, tension, and possibility of such as Maldives, Myanmar, and Nepal. The
terrorist and militant attacks from its immediate Committee recommended that the Ministry should
neighbourhood. Challenges of illegal migration take initiatives for enhancing maritime domain
and smuggling of weapons and drugs require awareness in India’s extended neighbourhood.
improved security infrastructure at borders. The
▪ Development in the North-Eastern Region: The
Committee recommended monitoring demographic
Act East policy focuses on the extended
changes caused by illegal migration in border
neighbourhood in the Asia-pacific region. India’s
areas. The Ministry of External Affairs should
north eastern region shares land borders with many
work in close coordination with the Ministry of
neighbouring countries. The economic
Home Affairs and state governments to address
development of north eastern states is integral to
illegal migration.
the success of the Neighbourhood First Policy and
▪ Relations with China and Pakistan: India’s the Act East Policy. The Committee
bilateral relations with China and Pakistan have recommended the Ministry to maintain a synergy
been plagued by contentious issues. Terrorism between these two policies. This can help improve
emanating from Pakistan is a core concern. The connectivity, economic development, and security
Committee recommended engaging with regional of the North-Eastern Region.
and multilateral organisations to sensitise them of
▪ Tourism promotion: Since 2020, India has been
the role of Pakistan in fostering terrorism. Efforts
the largest source of tourist arrivals to Maldives.
should be made to establish a common platform
Large number of visitors come to India from
for countering terrorism under the Neighbourhood
Bangladesh for medical treatment. Many Indians
First Policy. The Committee also recommended
also visit Nepal for religious tourism. The
that the government should establish economic ties
Committee recommended promoting investment in
with Pakistan.
tourism, including medical tourism under the
▪ Investment in border infrastructure: The Neighbourhood First Policy.
Committee noted the deficiency in India’s border
▪ Multilateral organisations: India’s engagement
infrastructure and the need to stabilise and develop
with its neighbours is driven by multilateral and
border regions. For engagement with India’s
regional mechanisms. This includes the South
neighbours, connectivity infrastructure such as
Asian Association for Regional Cooperation and
cross-border roads, railways, and inland waterways
the Bay of Bengal Initiative for Multi-Sectoral
and ports need an improvement. It recommended
Technical and Economic Cooperation. The
exploring the feasibility of setting up a regional
Committee observed that the impact of the
development fund for connectivity infrastructure
Neighbourhood First Policy should be felt on the
under regional frameworks.
ground in an extensive manner. This requires
▪ Monitoring India’s Line of Credit (LOC) strengthening of institutional and
Projects: India’ LOC to its neighbours increased multilateral/regional mechanisms. The Committee
from USD 3.3 billion in 2014 to USD 14.7 billion recommended conducting periodic review of
in 2020. The Committee observed that 50% of bilateral and multilateral relationship framework.
India’s global soft lending goes to its neighbours.
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Arpita Mallick July 31, 2023

arpita@prsindia.org
PRS Legislative Research ◼ Institute for Policy Research Studies
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