Why Leading Japanese Outlet 'Nikkei Asia' is Wrong: India’s Foreign Policy in South Asia is Strategic, Not Misguided.

Nikkei Asia’s recent claim that India’s foreign policy under Prime Minister Narendra Modi has left the country isolated in South Asia is not just an oversimplification—it is fundamentally flawed. While challenges certainly exist, India’s foreign policy is not characterised by a lack of regional influence but by strategic diplomacy that balances regional and global imperatives. Let’s break down why the portrayal of India as “friendless” is not just inaccurate but misleading.

India’s “Neighbourhood First” Policy: An Active, Multidimensional Approach

One of Nikkei Asia’s primary arguments is that India has neglected its South Asian neighbours. This couldn’t be further from the truth. India’s “Neighbourhood First” policy, initiated in 2014, reflects a deliberate and sustained effort to prioritise relations with neighbouring countries through economic partnerships, infrastructure projects, and cultural exchanges.

Bangladesh, for example, is a key partner in India's regional vision. Bilateral trade between India and Bangladesh stood at $16 billion in 2022-23, making it one of India's largest trading partners in South Asia. India has not only invested in infrastructure projects like the Maitree Super Thermal Power Project, but has also extended lines of credit worth $7.86 billion to support Bangladesh's development agenda, which includes key sectors like energy, transportation, and ICT. This level of commitment directly counters the narrative of India's alleged neglect.

Sri Lanka offers another example. India stepped up with over $4 billion in financial aid during Sri Lanka’s 2022 economic crisis, providing essential food, medicine, and fuel supplies at a time when other nations, including China, were slow to act. This response highlights India’s role as a regional stabiliser. China's investments in Sri Lanka may be significant, but they have also plunged Sri Lanka into a debt trap—a fact often omitted in pro-China narratives. India's support, in contrast, has been pragmatic and non-exploitative, reflecting a commitment to long-term regional stability.

In Nepal, while it is true that relations were strained after the 2015 blockade, India’s investment in key projects like the Arun III Hydropower Plant (which will generate 900 MW of electricity) demonstrates continued cooperation. More importantly, India’s cultural, economic, and security ties with Nepal run deep. India remains Nepal’s largest trade partner and the primary destination for Nepalese migrant workers, contributing significantly to Nepal's GDP through remittances. This relationship, grounded in shared history and economic interdependence, remains robust.

Nikkei highlighted the Maldives' new president's anti-Indian stance, but that narrative quickly shifted after his recent trip to India. During the visit, he praised his hosts, met with several officials, and even Bollywood celebrities. Nikkei prematurely used him as an example to support its argument about India's regional failures, without waiting for the conclusion of the trip, which had been scheduled since mid-September. This oversight weakened their argument by not considering the president’s change in tone during the visit.

China’s Influence: India’s Strategic Countermeasures

Nikkei Asia emphasises China’s growing influence in South Asia, but this portrayal fails to account for India’s active counter-strategy. While China's Belt and Road Initiative (BRI) has been successful in securing infrastructure projects across South Asia, India’s diplomatic and economic engagements aim to offer sustainable, non-exploitative alternatives.

India has taken significant strides to counterbalance China's moves. For instance, the India-Japan Asia-Africa Growth Corridor (AAGC), launched in collaboration with Japan, is aimed at creating a more equitable model of infrastructure development in Asia and Africa, providing an alternative to China's BRI. India’s SAGAR (Security and Growth for All in the Region) doctrine further underscores its commitment to maritime security and economic growth, particularly in the Indian Ocean Region. This doctrine positions India as a leader in ensuring regional security, directly challenging China's expansionist ambitions.

Moreover, India has successfully positioned itself as a security partner of choice for its neighbours. India’s defence cooperation agreements with countries like the Maldives, Bangladesh, and Sri Lanka emphasise capacity building and joint military exercises, which not only foster goodwill but also help counterbalance China’s economic muscle. India’s strategic partnership with the Maldives under the "Neighbourhood First" policy is particularly notable. Initiatives such as the Greater Male Connectivity Project, funded by India, are crucial for building trust and strengthening ties.

Addressing the “Big Brother” Perception: Building More Equitable Partnerships

Nikkei’s portrayal of India as an overbearing “big brother” is not a new criticism, but it overlooks recent efforts by India to address this perception. India's approach to regional diplomacy has shifted significantly in the past decade, moving from a paternalistic model to one that emphasises mutual benefit and respect for sovereignty.

In the case of Nepal, for example, India has refrained from interfering in its domestic politics since the 2015 blockade incident. Instead, India has focused on enhancing economic ties, and India-funded infrastructure projects like the Motihari-Amlekhgunj petroleum pipeline are seen as vital for Nepal’s economic development. Similarly, in its relations with Bangladesh, India has addressed sensitive issues through diplomatic channels, showing a commitment to cooperation rather than dominance.

India’s people-to-people initiatives, such as cultural exchanges and educational scholarships, have also helped change perceptions. The Indian Technical and Economic Cooperation (ITEC) program, which offers technical training and education to hundreds of South Asian professionals, is part of India’s soft power diplomacy, which emphasises capacity building rather than exerting undue influence.

Data and Facts: A Grounded Rebuttal to Nikkei’s Claims

The claim that India is diplomatically isolated in South Asia ignores the concrete facts and figures that tell a different story. Let’s examine the data:

• India is the largest trading partner for Nepal and Bangladesh, and its bilateral trade with Bangladesh hit $16 billion in 2022-23, an increase from previous years.
• India provided $4 billion in aid to Sri Lanka during its economic crisis, while China, despite its heavy investment, was slower to respond and more cautious with financial aid.
• India is Bangladesh’s second-largest investor, with investments in infrastructure, power, and connectivity projects that are vital for Bangladesh’s economic growth.
• India and the Maldives signed a defence agreement in 2021 to boost maritime security, further solidifying their strategic ties in the Indian Ocean Region.

Additionally, India’s vaccine diplomacy through the Vaccine Maitri initiative, which supplied millions of doses of COVID-19 vaccines to its South Asian neighbours, further highlights India’s commitment to regional well-being.

India’s Role in Multilateral Forums: Amplifying Regional Voice

India’s active participation in multilateral forums ensures that South Asia’s concerns are heard on the global stage. Examples include:

• SAARC and BIMSTEC: India has used platforms like SAARC and BIMSTEC to push for regional integration, focusing on areas like free trade, connectivity, and security cooperation. While SAARC has been less effective due to Pakistan’s role, BIMSTEC has emerged as a viable alternative for regional collaboration, led by India.
• G20 Presidency: India's G20 presidency in 2023 provided an opportunity to champion the concerns of developing nations, including its South Asian neighbours. This highlights India's role as a global advocate for regional interests.

Criticisms and Challenges: Acknowledging, Not Denying

India’s foreign policy is not without its challenges. Domestically, issues such as the Citizenship Amendment Act (CAA) and the National Register of Citizens (NRC) have sparked concerns in neighbouring Bangladesh. These concerns are valid and deserve diplomatic attention. However, to suggest that these issues have led to a breakdown in relations is an exaggeration. India continues to engage Bangladesh on critical areas like trade, security, and infrastructure, and Bangladesh remains one of India’s closest regional allies.

Moreover, while the “big brother” perception lingers in some quarters, India has shown a willingness to recalibrate its approach by focusing on equal partnerships, as seen in its recent engagements with Bhutan, Nepal, and Sri Lanka.

Conclusion: India’s Foreign Policy is Strategic, Not Misguided

The narrative that India is "friendless" in South Asia due to misguided foreign policy is not just inaccurate—it disregards the complex realities of regional diplomacy. India's "Neighbourhood First" policy, coupled with strategic global partnerships, offers a balanced and nuanced approach that prioritises both regional stability and global influence. India’s relationship with its South Asian neighbours, while sometimes strained, remains rooted in deep historical, cultural, and economic ties.

India never neglected its neighbourhood, but like all countries, it could sometimes have done some things better in hindsight. Nikkei Asia's analysis misses the forest for the trees, focusing on isolated incidents rather than acknowledging the broader success of India's foreign policy initiatives. India is not just a regional player—it is a regional leader that continues to shape the future of South Asia.