India as Vijigishu in South Asia: Analysis of India’s Neighbourhood First Policy

By Devoleena Borah*

Published on July 18 2025

India is seen as a dominant player in the geopolitical dynamics of South Asia, especially due to its geographical location and strategic influence. Since independence in 1947, India’s foreign policy has focused on its neighbourhood. The Indian government has always maintained and established relationships, prioritising neighbours in its plans for regional cooperation. For example, Nehru “laid a foundation by being more region-centric”, followed by Indira Gandhi’s “assertive realist” stance, and the Modi government has revived that stance explicitly since 2014. The Neighbourhood First Policy, launched in 2008 and institutionalised post-2014 under Modi’s administration, plays a key role in shaping India's foreign policy, reflecting its efforts to deepen political, economic, and security ties with neighbouring countries while working towards countering external influences from the big powers. This approach can be studied through the ancient Indian strategist Kautilya’s Mandala Theory, where Vijigishu, an ambitious ruler, paved his way in complex relationships with surrounding states to consolidate power.

It can be argued that India’s engagement with its immediate neighbours through its neighbourhood-first policy is a modern application of Kautilyan statecraft. To attain regional dominance, New Delhi has adopted a combination of saam (conciliation), daam (economic incentives), danda (coercion), and bheda (division). Through this approach, India aims to adapt as a central and reliable power in South Asia by maintaining its position, irrespective of the changing trends of alliances and external challenges. Despite this, a question arises: Does India simply seek to dominate its neighbours? Officially, New Delhi states that its policies are based on respect and cooperation. The Ministry of External Affairs claims that India’s relationship with its neighbouring states is supported by the 5S principles of Samman (respect), Samvad (dialogue), Shanti (peace), Samriddhi (prosperity), and Sanskriti (culture). By focusing on values-based principles, India can position itself as a "reluctant" hegemon and not as an assertive imperial power. In reality, India’s position is backed by active diplomacy, like hosting regular summits and bilateral visits by the prime minister and other leaders to their South Asian counterparts and safeguarding ongoing high-level interaction. These help India identify itself as an active and willing leader in South Asia and provide an image of partnership and shared development.

Kautilya’s Mandala Theory and the Vijigishu in Modern Geopolitics

The Mandala Theory presented in Kautilya’s Arthashastra is regarded as a framework for understanding interstate relations. Vijigishu, a key component, desires to expand its influence while managing a network of allies (Mitra), adversaries (Ari), mediators (Madhyama), and neutrals (Udasina) with the logic that the neighbouring states are natural enemies (Ari), whereas the neighbours of those enemies can be counted as potential allies (Mitra). The theory presents an unprecedented strategy of diplomacy, warfare and alliances to neutralise threats and strengthen security.

In contemporary South Asia, India is surrounded by smaller states, which switch between alignment and resistance, resembling the Vijigishu. The Neighbourhood First Policy implements Kautilyan principles while redefining their application to current conditions. India’s position as the region's largest economy and military power reflects its dominance as vijigishu. As an example, its policies with its hostile neighbour, like Pakistan, are based on the classical strategies such as surgical strikes (2016, 2019), and diplomatic isolation and dialogues are contemporary examples of Vigraha (coercion) and Sandhi (conciliation).  Thus, in many aspects, it can be stated that India applies the Mandala approach to maintain a balance between hard and soft tactics.

However, some aspects of the Neighbourhood First Policy also contradict the Kautilyan ideology. India has practised cooperative economic projects even with traditionally neutral or buffer states, such as India's hydropower partnership with Bhutan and the Kaladan Project in Myanmar. Initiatives like these, along with COVID-19 vaccination diplomacy, are examples of soft power focusing on development rather than exploitation. Furthermore, multilateral forums like SAARC and BIMSTEC show India’s efforts towards collective regional engagement (addressing climate change and piracy challenges) in contrast to Kautilya’s bilateralism. Indeed, India’s foreign policy has originally aimed at securing a stable and prosperous neighbourhood to foster its growth and development. Some experts note that India’s socio-economic advancement is “highly dependent on the stable, safe and peaceful environment” of its neighbours, stressing the importance of prioritising the guarantee of regional stability over long-lasting rivalry. Thus, it can be stated that although some of India’s approaches are influenced by Kautilya, it also defies Kautilyan ideology to promote collective growth and stability. 

Comparative Analysis: Continuity and Evolution

The aspects of the region justify the principle of Kautilya. The conflict over Kashmir and cross-border terrorism maintains a hostile relationship with Pakistan as India’s “Prakritik Ari” (natural enemy). Border clashes (Galwan, 2020) and strategic infrastructure projects like the China-Pakistan Economic Corridor (CPEC) reflect China as “Sahaj Ari” (strategic adversary), which reminds one of Kautilya’s caution on external powers exploiting the Mandala. Smaller South Asian states like Nepal, which maintain a balance between India and China, and the Maldives, which keep shifting between pro-India and pro-China practices, adopt the policy of Dvaidhibhava (dual policy).

Despite the challenges, India has skillfully managed to handle regional instability rather than cutting off all ties. For example, in the Maldives, when President Mohamed Muizzu came into power in 2024 with a clear “India out” message, India didn’t back off. Instead, it provided the Maldives with a $400 million currency swap and assured help with its infrastructure. As a result, Muizzu publicly said, "India is a key partner in the socio-economic and infrastructure development of the Maldives and has stood by the Maldives during our times of need." This story demonstrates New Delhi’s focus on maintaining relationships even when the government turns hostile, and thus managing conflicts and strengthening its position through support rather than abandonment.

However, the Neighbourhood First Policy has redefined neighbours as “essential partners” rather than inherent enemies. This statement can be reflected by India's assistance to Bangladesh during the 1971 Liberation War, building a Mitra relationship and strengthening it through trade and connectivity. India’s $4 billion aid to Sri Lanka during its crisis in 2022 opposed China’s BRI “debt trap diplomacy” while promoting economic interdependency. Additionally, official engagement through BIMSTEC aims at collective security, unlike Kautilya's idea of making deals just for gain.

 Navigating the Contemporary Mandala 

Structural tension challenges India’s neo-Kautilyan approach. China’s Belt and Road Initiative (BRI) acts as an alternative Mandala, spreading its influence by the acquisition of ports (Hambantota, Sri Lanka) and funding infrastructure in Nepal. It also uses economic interdependence as a strategic tool. The instability in the region, such as Nepal's 2015 blockade (reflected as harsh Danda), Sri Lanka's debt problems, and Myanmar's military takeover, calls for a reframing of Shadgunya. On the other hand, New Delhi worries that Indian hegemony might push neighbours towards China, which can be highlighted through Bangladesh's balancing act, where security ties with Beijing amid CAA/NRC issues.

 Despite that, BRI’s presence also helps the smaller states with the advantage of balancing between the two powers. When faced with Chinese infrastructure loans, many South Asian countries have looked for alternative partners, and in response, India increased its development aid. For instance, India gave Sri Lanka a $4 billion loan in 2022 during its economic crisis, assisted Colombo to deal with its debt and moderated Chinese influence. In the same way, India has often sent quick assistance and lines of credit to smaller countries when most needed, as seen in the recent case of the Maldives. These efforts show that even though BRI creates competition, it also inspires India to positive engagement. Small countries take advantage by playing India's offers while receiving both economic aid and maintaining their freedom to choose. Moreover, development aid becomes a tool for India to strengthen ties and offer its neighbours an alternative to Chinese reliance. 

The Neo-Kautilyan Imperative

India’s Neighbourhood First Policy reflects the gradual change in the Mandala theory. India is positioning itself as a Vijigishu, using Kautilya’s strategy to counter its enemy, Pakistan, fostering a relationship with Bangladesh, and balancing the external competitor (China) while initiating cooperative frameworks. India’s approach to diplomacy balances between idealism and pragmatism; its leaders often highlight the idea of shared history, regional peace and collective prosperity (referring to principles like Panchsheel or values like samman, samvad, shanti, and samriddhi). However, in reality, decisions are driven by power and security (realism) when India follows both economic and military strategies to protect its interests. However, the size and ambitions of India lead to a tension between being seen as a “potential hegemon” or as a “reluctant leadership”. Therefore, India’s policies' success depends upon balancing shared prosperity with necessary realpolitik.

India has a clear goal: to convert its historical and geographical strengths into a stable regional order that determines its growth. Since its independence, it has kept its neighbours at the core of its foreign policy, and different governments have tried to make South Asia a region of peace instead of conflict. It can be put forward that India’s ability to handle its neighbourhood will determine “its success in achieving its aim of being one of Asia’s major powers”.  Thus, India’s neighbourhood-first policy balances practicality with firm values. It uses both pressure and offers incentives whenever necessary, but justifies its actions with respect, discussions, peace, and mutual growth in mind.

*Devoleena Borah is a Master’s in International Relations and Strategic Studies from the University of Mumbai and is also a intern at KIIPS.