ABSTRACT
This chapter argues that the Modi government’s “neighbourhood first” policy is distinct in three respects: Prime Minister Modi’s ambition to put his personal stamp on foreign policy, India correcting for its perceived neglect of neighbours, and China’s increased footprint in South Asia. Focusing on Bangladesh, Nepal, and Sri Lanka, the chapter explores how the policy did not yield completely satisfactory results because of the contradiction between its “India cares” aspect and the “engagement on India’s terms” component. It furthermore details China’s assertive economic and strategic push into India’s neighbourhood and describes how India has adapted the “neighbourhood first” policy to meet the Chinese challenge, including by toning down the policy’s muscular aspects, using cultural diplomacy, enhancing and reforming development programmes, and collaborating with America and Japan.
