Within South Asia, Modi government framed a Neighbourhood First policy to signal India’s commitment to regional connectivity. From a policy of strategic insulation and neglect during much of the Cold War, and a reluctant embrace of regionalism thereafter, India’s regional policy has now shifted irreversibly towards strengthening cross-border relations.
An Indian connectivity strategy must be informed by new research, knowledge, and data on neighbouring countries and specific sectors. This will require investment in regional and cross-border studies. The strategy will have to be implemented in coordination with new stakeholders, including sectoral ministries (e.g. power or shipping), state governments, and political parties (e.g. in Uttar Pradesh for Nepal, or Mizoram for Myanmar), private sector interests (infrastructure companies and industrial lobbies), civil society representatives (e.g. universities or environmental activists), and also multilateral organisations (e.g. the Asian Infrastructure Investment Bank (AIIB) or ADB).
India will have to focus on specific areas and projects that enhance its comparative advantage. Rather than blind competition with China on financing hard infrastructure projects, for example, Delhi should invest relatively more on the soft dimensions
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