India must reboot neighbourhood policy — trade is the key |
Barely a few months ago, it was all gloom and doom about India’s neighbourhood policy. Delhi was consumed by hand-wringing about why and how India “lost” the Subcontinent. The downturn in relations with Dhaka after the ouster of Sheikh Hasina sharpened that acute sense of loss. The question now is different. Can India seize the opportunities for a reboot of regional policy triggered by new political developments across the neighbourhood?
In Bangladesh, the elections in February handed Tarique Rahman and the Bangladesh Nationalist Party a massive mandate. Rahman’s emphasis on “Bangladesh First” opens the door for a mature, unsentimental, interest-based relationship with Dhaka. Over the last decade, Bangladesh has emerged as India’s most important neighbourhood partner. The deep economic interdependence built over this period appears to have survived the political toxicity of the last 20 months, but the relationship now needs fresh political impetus.
Nepal’s transition has been equally striking. The sweeping victory of the Rastriya Swatantra Party and the rise of Balendra Shah mark a generational political shift, one that offers an opportunity to move beyond the old cycle of distrust. India must shed the rhetoric of a “special relationship” in favour of one grounded in equality and genuine respect for Nepal’s sovereignty.
Sri Lanka had, in fact, begun the positive evolution of the region. Colombo, too, has a new generation in charge since the 2024 elections. It has been moving toward pragmatic engagement with Delhi and breaking free from the historical political animosity that long coloured the........