India's Neighbourhood First Policy

South Asia's political map has shifted considerably heading into 2026, testing the durability of India's Neighbourhood First approach — built on strengthening political trust, economic cooperation, and regional connectivity:

  • Bangladesh: The change in political leadership in Dhaka after Sheikh Hasina's departure has introduced new uncertainty into a relationship that had been anchored in security and connectivity cooperation.
  • Nepal and Sri Lanka: Both nations went through election cycles and leadership transitions in early 2026, with India seeking to reset relations once new governments settle in.
  • Trade-first recalibration: Analysts are urging India to move from a paternalistic aid-driven model toward genuine, mutually beneficial economic integration — leveraging tools like UPI expansion, the Agartala–Akhaura rail link, and the Kaladan Multi-Modal Transit Transport Project.
  • Persistent structural commitments: India's lines of credit to neighbours, joint military exercises with Maldives, Myanmar and Nepal, and initiatives like Operation Sagar Bandhu continue to underpin its regional engagement even amid political flux.