The Global Eye: Neighbourhood First Policy and has it benefitted India; experts discuss

The deep economic crisis in Sri Lanka, the political instability in Pakistan, the rise of the Taliban in Afghanistan and a rising anti-India rhetoric in the Maldives -- all of these have implications for India. Is it time now to review India’s neighbourhood policy? But before that, let’s take a look at India’s investments in the region and the kind of economic situation some of the countries are in.

First of all, what is India’s Neighbourhood First Policy? This was announced early on in Prime Minister Narendra Modi’s first term. The focus was on improving ties with India’s neighbours, help without strings attached and reduce China’s influence.

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Pakistan is battling extreme inflation, with its forex reserves at their lowest levels since March 2021 and the Pakistani rupee at a historic low. Sri Lanka is left with foreign exchange reserves of $1.93 billion. It has to make payments to the tune of $8.6 billion this year and is under a foreign debt of $12.5 billion.

Nepal is facing a balance of payments deficit. It has stopped non-essential imports and its forex reserves have fallen by 16 percent in the last 7 months.

Rajeev Kher, Former Commerce Secretary; Rahul Chhabra, Former Secretary-Economic Relations at MEA; and C Raja Mohan, Asia Society Policy Institute in New Delhi discuss India’s Neighbourhood First Policy and whether it is time for a review.

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