24-July-2024-Special-Article

NEIGHBOURHOOD FIRST APPROACH IN THE MEA’S AID DISTRIBUTION

The Union Budget 2024-25 of India has highlighted the Ministry of External Affairs’ (MEA) plans for development assistance, emphasizing strategic partners and neighbouring countries.

This approach aligns with India’s Neighbourhood First Policy, aiming to enhance regional connectivity, cooperation, and stability.

Distribution of Development Aid

The MEA has allocated Rs 4,883 crore for aid to various countries. The distribution is as follows:

• Bhutan: Received the highest allocation of Rs 2,068.56 crore, slightly reduced from the previous year’s Rs 2,400 crore.
• Nepal: Allocated Rs 700 crore, an increase from last year’s Rs 550 crore.
• Maldives: Received a steady allocation of Rs 400 crore, even though the revised amount for the prior year was Rs 770.90 crore.
• Sri Lanka: Received Rs 245 crore, up from Rs 150 crore last year.
• Afghanistan: Allocated Rs 200 crore, underscoring India’s commitment to aiding Afghanistan’s stability and development.
• Iran: The Chabahar Port Project continues to be allocated Rs 100 crore, a figure that has remained constant over the last three years.
• Africa: African countries collectively received Rs 200 crore, reflecting India’s growing engagement with the continent.
• Seychelles: Allocation increased to Rs 40 crore, up from Rs 10 crore.

Benefits of Development Aid to Neighbouring Countries

Strengthening Diplomatic Relations

• Enhances diplomatic ties, fostering stronger political and economic relationships.

Promoting Regional Stability

• Financial support helps stabilize neighbouring countries, leading to a more secure and stable region, benefiting India’s strategic interests.

Supporting Economic Development

• Aid contributes to infrastructure projects and development programs, boosting economic growth in recipient countries.

Encouraging Trade and Investment

• Improved infrastructure and economic conditions can increase trade and investment opportunities for India.

Enhancing Strategic Influence

• Providing aid allows India to exert influence and build alliances, ensuring positive engagements with neighbouring countries.

Addressing Humanitarian Needs

• Aid often addresses urgent humanitarian needs, improving the quality of life in recipient countries.

Strengthening Soft Power

• By investing in neighbouring countries’ development, India bolsters its soft power and reputation as a responsible regional leader.

India’s Neighbourhood First Policy

Concept

• Introduced in 2008, this policy guides India’s approach towards managing relations with neighbouring countries like Afghanistan, Bangladesh, Bhutan, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka.

Objectives

• Enhancing physical, digital, and people-to-people connectivity.
• Augmenting trade and commerce.
• Prioritizing development cooperation, security, and fostering greater people-to-people contacts.

Importance of the Neighbourhood First Policy for India

Terrorism and Illegal Migration

• Better relations can improve border security and monitor demographic changes due to illegal migration.

Relations with China and Pakistan

• Engaging in regional and multilateral organizations can highlight Pakistan’s role in terrorism and create a common platform for counterterrorism.

Investment in Border Infrastructure

• Improved connectivity infrastructure can stabilize and develop border regions.

Monitoring Line of Credit (LOC) Projects

• Enhances India’s influence and expands economic linkages with recipient countries.

Defence and Maritime Security

• Defence cooperation and joint military exercises enhance maritime domain awareness.

Development in the North-Eastern Region

• Countries like Myanmar and Thailand can improve connectivity and economic development in the North-Eastern Region.

Tourism Promotion

• Tourism fosters cultural exchange, boosting exports of Indian cultural products and services.

Multilateral Organizations

• Regional mechanisms like SAARC and BIMSTEC help India assert its leadership role in South Asia.

Challenges in India’s Relationship with Neighbouring Countries

• Border Disputes: Conflicts and tensions arise due to disputes over borders, particularly with China and Pakistan.
• Terrorism: Pakistan supports militant groups that carry out attacks in India.
• Illegal Migration: The influx of illegal migrants from Bangladesh causes demographic and security concerns.
• Trade Imbalances: Economic issues and trade barriers affect relations with neighbours like Pakistan, Bangladesh, and Nepal.
• Water Disputes: Conflicts over sharing river waters strain ties with Pakistan and Bangladesh.
• Internal Conflicts: Political instability in neighbouring countries impacts bilateral relations.
• Diplomatic Relations: Issues like the treatment of minorities in Sri Lanka create friction.
• Environmental Issues: Joint efforts are needed to address natural disasters and environmental problems.
• Regional Cooperation: Disagreements within regional organizations can hinder effective cooperation.

Initiatives by India to Improve Relationships with Neighbours

• Neighbourhood First Policy
• Act East Policy
• SAGAR (Security and Growth for All in the Region)
• Project Mausam
• BIMSTEC
• SAARC Rejuvenation
• Gujral Doctrine

Way Forward

Strengthening Diplomatic Engagement

• Regular diplomatic dialogues and high-level meetings to address and resolve issues.

Enhancing Economic Cooperation

• Fair trade agreements and collaboration on infrastructure projects to improve connectivity and economic integration.

Promoting Security and Stability

• Regional security initiatives to address common threats like terrorism and illegal migration.

Fostering People-to-People Connections

• Educational and tourism initiatives to build mutual understanding and goodwill.

Addressing Environmental and Humanitarian Issues

• Joint efforts to tackle natural disasters and environmental problems, providing humanitarian assistance in times of crisis.

Strengthening Regional Organizations

• Active participation in regional organizations like SAARC and BIMSTEC to improve their mechanisms for decision-making and implementation.

Addressing Internal and External Factors

• Balanced policies that consider both domestic and international implications, aligning with the principles of the Gujral Doctrine.

Conclusion

India’s development assistance and the Neighbourhood First Policy aim to foster stronger diplomatic, economic, and strategic ties with neighbouring countries, promoting regional stability and prosperity. Despite challenges, these efforts are crucial for enhancing India’s influence and fostering a secure, stable, and prosperous region.

Mains question:

1. How does India’s Neighbourhood First Policy, as reflected in the Union Budget 2024-25 aid allocation, enhance regional stability and India’s strategic interests? (150 WORDS)