How India’s neighbourhood has been a challenge for Delhi in 2024

This year has underscored the importance of diplomatic agility and the challenges of maintaining regional stability amidst shifting alliances and internal crises within neighbouring countries

File photo of Prime Minister Narendra Modi and External Affairs Minister S Jaishankar. Source: PTI.

The year 2024 has proven to be a critical period for India’s foreign policy, particularly in its relationships with its immediate neighbors. India’s “Neighbourhood First” policy, championed by Prime Minister Narendra Modi, aims to prioritise and strengthen relations with neighbouring countries. However, this year has presented a series of unprecedented challenges, testing the resilience and strategic depth of Indian diplomacy.

The political landscape of South Asia has been turbulent, with significant political shifts in countries like Bangladesh, Nepal, and the Maldives. In Bangladesh, the ouster of long-time ally Sheikh Hasina has led to a more strained relationship with Dhaka, as the new government appears to be pivoting towards Pakistan and China. This shift, coupled with rising violence against minorities, has strained the bilateral ties that were previously strong. Nepal has seen considerable political instability, impacting its engagement with India despite high-level economic cooperation efforts.The Maldives presents a similar scenario, with a pro-China leadership creating diplomatic tensions that India has been striving to mitigate through strategic dialogue and cooperation.

In Sri Lanka, the economic recovery process has necessitated a careful balancing act for India. While seeking to aid its southern neighbour, India must also navigate the increasing influence of China in the region.

Meanwhile, the relationship with Pakistan remains fraught with historical animosities and recent developments, including India’s decision to avoid travelling to Pakistan for the 2025 Champions Trophy. This decision, along with Pakistan’s missile developments, has only added to the existing complexities.

As 2024 comes to a close, India’s relationships with its neighbours highlight the urgent need for nuanced and robust foreign policy strategies. This year has underscored the importance of diplomatic agility and the challenges of maintaining regional stability amidst shifting alliances and internal crises within neighbouring countries. India’s ability to navigate these turbulent waters will be critical in shaping its role and influence in South Asia.

Bangladesh: A Strained Relationship

The ouster of Sheikh Hasina in August 2024 marked a significant turning point in India-Bangladesh relations. Under Hasina’s leadership, bilateral ties had flourished, with India being a major economic and security partner. However, her removal amid alleged vested interests motivated mass protests, and the subsequent establishment of an interim government led by Muhammad Yunus strained the relationship. The new administration’s gravitation towards Pakistan and China, coupled with the rise of extremist elements in Bangladesh, has led to increased violence against minorities, particularly Hindus. This has prompted India to express concerns and register strong protests.

The economic interdependence between the two countries, especially in trade and the textile industry, has also been affected, with several India-financed projects stalling. The textile industry, a critical sector for both nations, has seen disruptions due to the political instability and shifting alliances. Indian companies operating in Bangladesh have faced uncertainties, impacting their investments and operations. The stalled projects, which were aimed at enhancing infrastructure and connectivity, have further strained the economic ties between the two countries.

The rise of extremist elements in Bangladesh has added another layer of complexity to the relationship. The increased violence against minorities, particularly Hindus, has raised concerns in India about the safety and security of these communities. The Indian government has been vocal in its condemnation of these acts and has urged the Bangladeshi authorities to take swift action to protect minorities and uphold the rule of law.

The shift in Bangladesh’s foreign policy towards Pakistan and China has also been a cause for concern for India.

Nepal: Navigating Political Instability

India’s relationship with Nepal has always been complex, characterised by deep-rooted cultural and historical ties. However, 2024 saw significant political instability in Nepal, which impacted bilateral relations. The frequent changes in government and the reappointment of Shankar Prasad Sharma as Nepal’s envoy to India highlighted the ongoing political flux. Despite these challenges, both countries continued to engage in high-level exchanges and economic cooperation. The India-Nepal Economic Partnership Summit in Chitwan aimed to boost bilateral trade and investment, reflecting a commitment to maintaining strong economic ties. However, the political instability in Nepal remains a concern for India, as it affects the implementation of key infrastructure projects and border management.

Sri Lanka: Balancing Relations Amid Economic Recovery

Sri Lanka’s relationship with India in 2024 was marked by a delicate balancing act. The island nation, still recovering from the severe economic crisis of 2022, sought India’s support for economic stability and recovery. The visit of Sri Lankan President Anura Kumara Dissanayake to India in December was a significant step in strengthening bilateral ties. The discussions focused on expanding economic cooperation, enhancing regional security, and deepening ties in areas such as defence, trade, and cultural exchanges. However, the growing influence of China in Sri Lanka remains a concern for India.

Sri Lanka’s strategic importance in the Indian Ocean region makes it a critical partner for India. The country serves as a key maritime hub, providing vital access routes that are crucial for regional security and economic stability. India’s support for Sri Lanka’s economic recovery includes financial assistance, investment in infrastructure projects, and trade agreements aimed at boosting bilateral trade. These efforts are designed to not only stabilise Sri Lanka’s economy but also to reinforce India’s strategic presence in the region.

Despite these positive developments, the challenge lies in balancing this relationship without alienating Colombo or pushing it further into Beijing’s orbit. China’s investments in Sri Lanka, particularly in infrastructure and port development, have increased Beijing’s influence in the region. India’s diplomatic strategy involves careful navigation of this complex dynamic, ensuring that its support is perceived as beneficial to Sri Lanka’s sovereignty and long-term interests. The ongoing dialogue and cooperation between India and Sri Lanka reflect a mutual recognition of the importance of maintaining a balanced and strategic partnership in the face of regional challenges.

Maldives: A Diplomatic Tightrope

The Maldives has been a focal point of India’s “Neighbourhood First” policy, given its strategic location in the Indian Ocean. However, the election of pro-China leader Mohamed Muizzu as president in 2023 posed a challenge for India. Muizzu’s initial anti-India stance created a chill in bilateral relations, but subsequent diplomatic efforts helped thaw the relationship. The visit of Maldivian President Muizzu to India in October 2024 was a significant step in this direction. The discussions focused on transforming the bilateral relationship into a Comprehensive Economic and Maritime Security Partnership, with agreements on financial support, trade, and defence cooperation. Despite these positive developments, the underlying tensions and the influence of China in the Maldives continue to pose challenges for India.

The Maldives’ strategic importance in the Indian Ocean cannot be overstated. It serves as a crucial maritime route and a potential military outpost, making it a significant player in regional geopolitics. India’s efforts to maintain a strong relationship with the Maldives are driven by the need to counterbalance China’s growing influence in the region. The election of Mohamed Muizzu, known for his pro-China stance, initially threatened to derail these efforts. His administration’s early moves, including public statements critical of India’s presence in the Maldives, created a diplomatic rift that required careful navigation.

India’s response was measured and strategic. Diplomatic channels were kept open, and efforts were made to engage with the new administration constructively. The visit of President Muizzu to India in October 2024 was a pivotal moment in this diplomatic dance. The discussions during the visit were comprehensive, covering areas such as financial support, trade, and defence cooperation. The agreements reached aimed to transform the bilateral relationship into a Comprehensive Economic and Maritime Security Partnership, reflecting a mutual recognition of the strategic importance of their cooperation.

However, the underlying tensions remain. The influence of China in the Maldives continues to be a significant concern for India. China’s investments in infrastructure projects and its strategic presence in the Indian Ocean pose a challenge to India’s interests. The Maldives’ balancing act between India and China requires constant diplomatic engagement and vigilance from India. The challenge for India is to ensure that its relationship with the Maldives remains strong and that it can effectively counter China’s influence without alienating the Maldivian leadership.

Pakistan: Persistent Tensions

India’s relationship with Pakistan in 2024 remained fraught with tensions. The two countries have not engaged in bilateral cricket since 2012, and India’s refusal to travel to Pakistan for the Champions Trophy in 2025 further strained relations. The hybrid model of hosting matches at a neutral venue, such as Dubai, was a compromise, but it underscored the deep-seated mistrust between the two nations. Additionally, Pakistan’s attempts to develop long-range missiles capable of targeting the United States and its blackmailing tactics over India’s missile capabilities have further complicated the relationship. The political turmoil in Pakistan, with Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party gaining significant seats in the 2024 elections, has added another layer of uncertainty to the bilateral relationship.

Thus, 2024 has been a year of diplomatic strain for India with the neighbouring countries amid increasing political and economic volatility in South Asia.