Evaluating India's Neighbourhood First Policy: Failures and Reflections

As Bangladesh and Nepal face political upheavals, examining India's regional priorities in context of domestic politics becomes crucial.
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Surya
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South Asia elections reshape politics, test India’s regional influence
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South Asia Youth-Led Uprisings and Regional Political Dynamics

1.Recent Youth-Led Uprisings in South Asia

Bangladesh and Nepal are holding crucial elections — on February 12, 2026, and March 5, 2026, respectively — following dramatic youth-led uprisings in recent years. Similar uprisings have occurred in Sri Lanka (2022) and Bangladesh (2024), reflecting widespread dissatisfaction with governance, economic hardship, and political corruption.

The uprisings underscore the interplay of economic drivers (cost of living, unemployment) and authoritarian tendencies, as in Bangladesh under the Sheikh Hasina regime. Social media amplified mobilisation, but structural economic discontent remained the primary motivator for mass protests.

Ignoring these underlying drivers risks recurring instability, undermines democratic legitimacy, and can delay necessary political and economic reforms.

Key Trends:

  • Multiple uprisings in Sri Lanka, Bangladesh, Nepal
  • Drivers: economic distress, corruption, authoritarianism
  • Youth and women played leading roles in protests

2. Bangladesh: Election Dynamics and Party Realignment

In Bangladesh, the uprisings were largely against the Awami League, though a root-and-branch overhaul of the political system has not occurred. The Bangladesh Nationalist Party (BNP) is currently the front-runner, but generational leadership shifts after Khaleda Zia’s passing introduce uncertainties about party ideology and governance approach.

Newer political formations, such as the National Citizen Party, allied with Jamaat-e-Islami, raise concerns about whether the revolutionary spirit and women’s rights advocacy of the uprisings will be sustained. The security apparatus built by Hasina largely remains intact, influencing the balance of power.

The consolidation of traditional parties risks reversing reformist gains from the uprisings, affecting governance, accountability, and civil liberties.

Impacts:

  • Possible continuity of old power structures
  • Challenges for new parties in preserving uprising ideals
  • Security apparatus remains a stabilizing yet constraining factor

3. Nepal: Electoral Fragmentation and New Political Forces

Nepal’s post-uprising elections are likely to produce a scattered mandate due to multiple small parties. Traditional parties — Nepali Congress, UML, and Maoists — may face electoral setbacks, while newer actors like Rabi Lamichhane and Balen Shah have consolidated under a single party, though internal contradictions remain.

Voter focus is on party reinvention and the capacity of new political formations to address corruption, economic stagnation, and youth aspirations. The outcome is less predictable compared to Bangladesh and Sri Lanka.

Electoral fragmentation can both challenge policy implementation and create opportunities for governance innovation if new actors succeed in building coalitions.

Key Points:

  • Emergence of new leaders and parties
  • Reinvention attempts by traditional parties
  • High unpredictability due to fragmented mandates

4. India’s Role and ‘Neighbourhood First’ Policy

India’s Neighbourhood First policy aims to strengthen ties with South Asian neighbors but faces significant challenges:

  • Bilateral ties have deteriorated, e.g., rising anti-India sentiment in Bangladesh, Maldives, and Nepal
  • Domestic political narratives in India often prioritize BJP electoral gains over regional cooperation
  • Policies pressuring neighbors to limit trade with China undermine India’s credibility, despite India’s aid contributions post-crisis in Sri Lanka and Nepal

Failure to balance domestic politics with regional diplomacy erodes India’s soft power, goodwill, and influence, impacting long-term regional stability and cooperation.

Implications:

  • Reduced effectiveness of South Asian regionalism
  • Negative perception of India despite economic and humanitarian aid
  • Complicates trade and multilateral collaboration

5. Regional Cooperation and South Asian Integration

While political relations remain strained, economic interdependence provides a natural pathway toward regional cooperation. Challenges include:

  • Domestic political narratives obstructing multilateral engagement
  • Historical mistrust and sovereignty concerns
  • Need for alignment between citizen welfare priorities and regional strategies

The logical course for South Asia involves prioritizing domestic citizen welfare, which in turn can promote incremental regional integration, particularly in trade, disaster response, and infrastructure.

Neglecting the economic and social imperatives in favor of politicized narratives can delay integration, weaken regional stability, and exacerbate conflicts.

Policy Measures:

  • Focus on economic and social well-being as a basis for cooperation
  • Encourage transparent, trust-building multilateral initiatives
  • Leverage youth engagement and civil society for reform advocacy

6. Way Forward

  • Monitor post-uprising electoral outcomes in Bangladesh and Nepal for shifts in governance and policy direction
  • India should align domestic politics with regional diplomacy, maintaining credibility while supporting development initiatives
  • Promote institutionalized regional platforms for economic cooperation, disaster management, and trade
  • Support youth participation and gender-inclusive leadership to sustain reform momentum

“The ultimate goal for each of our countries to pursue independently is the well-being of their own citizens. The logical course of that will lead to and will pass through greater regional integration simply because of the economic logic.” — Roman Gautam, Editor, Himal Southasian

Quick Q&A

Everything you need to know

Economic factors:
The uprisings in Sri Lanka (2022), Bangladesh (2024), and Nepal (2025) were deeply rooted in economic distress. In Sri Lanka, an outright economic crisis triggered mass protests, with citizens demanding relief from severe shortages and inflation. In Bangladesh and Nepal, cost-of-living pressures, inflation, and frustration with corruption also played a central role.
Political factors:
Political authoritarianism and the perception of entrenched, unresponsive leadership amplified the uprisings. In Bangladesh, discontent was directed at the Awami League’s leadership, particularly regarding governance style and perceived human rights abuses. In Nepal, the youth protests reflected dissatisfaction with traditional parties like the Nepali Congress and UML.
Role of social media:
While economic and political grievances were primary drivers, social media acted as a catalyst by mobilizing public sentiment, disseminating information, and coordinating protests. This demonstrates how technology can amplify long-standing structural discontent in South Asia.

Domestic significance:
The elections in Bangladesh (February 12, 2026) and Nepal (March 5, 2026) will determine whether the youth-led movements translate into meaningful political change. In Bangladesh, while the BNP is leading, concerns remain about generational shifts and whether the new leadership will address past systemic issues. In Nepal, the consolidation of newer political forces like Rabi Lamichhane and Balen Shah indicates potential disruption of the traditional three-party dominance.
Regional implications:
South Asia’s political stability has a direct impact on India’s neighborhood. Shifts in governance in Bangladesh and Nepal could influence trade, border management, and bilateral cooperation. A leadership aligned with reformist agendas could enable regional economic integration, while entrenched traditional powers might slow progress.
International attention:
Observers note that these elections will also set precedents for youth-led political engagement in the region, influencing policies and governance structures beyond national borders.

Bangladesh:
The BNP is undergoing a generational transition after Khaleda Zia’s passing. Internal debates over leadership and policy direction could shape whether the party truly represents reformist aspirations or merely continues patterns of the past. Additionally, alliances with parties like Jamaat-e-Islami create tensions regarding rights and governance norms, particularly for women and youth activists.
Nepal:
Traditional parties such as the Nepali Congress, UML, and Maoists are seeking reinvention amid declining popular support. Meanwhile, newer figures like Rabi Lamichhane and Balen Shah have merged forces, though internal contradictions may limit cohesion. This fragmentation suggests the likelihood of a scattered mandate, reflecting the electorate’s demand for accountability and new governance models.
Implication:
Internal party dynamics will influence the ability of political actors to deliver reforms, maintain stability, and address the underlying economic and social grievances that fueled the uprisings.

Policy context:
India has pursued a ‘Neighbourhood First’ policy, aiming to prioritize strong bilateral and regional ties. However, the practical impact has been limited, as domestic political considerations often take precedence over regional objectives. In Bangladesh and Nepal, perceived interference or pressure by New Delhi has contributed to anti-India sentiment.
Consequences:
This dynamic complicates regional cooperation, as political tensions can undermine economic and security collaboration. While India has provided aid after crises, such as the Sri Lanka economic meltdown or the Nepal earthquake, these efforts are sometimes overshadowed by perceptions of political interference, reducing goodwill.
Implication for regionalism:
India’s domestic politics, especially the BJP’s electoral interests, have at times constrained its ability to act as a neutral facilitator for South Asian regional integration. Consequently, initiatives for cooperation on trade, infrastructure, or climate resilience are often hindered by political distrust.

Sri Lanka:
The 2022 uprising led to the ouster of the established political order, allowing the JVP (Janatha Vimukthi Peramuna) to gain significant political influence. Economic desperation and political dissatisfaction combined to produce sweeping electoral changes.
Bangladesh:
The 2024 youth-led protests focused on authoritarian governance and cost-of-living concerns. While the immediate electoral outcome favors BNP, there remains uncertainty about whether the movement’s ideals—particularly regarding corruption and rights—will be effectively represented.
Nepal:
Recent uprisings contributed to the emergence of non-traditional political figures like Rabi Lamichhane and Balen Shah. Their consolidation under a new party reflects a desire to break from traditional party dominance, though long-term governance impacts remain to be seen. These examples demonstrate the capacity of youth movements to disrupt entrenched political structures, even if full systemic change is gradual.

Bangladesh:
The main challenge is reconciling the demands of youth-led reform movements with the historical tendencies of established parties. The BNP, despite being an electoral favorite, carries legacies of authoritarian practices. Security apparatuses built under previous regimes remain intact, potentially limiting the capacity for deep institutional reform.
Nepal:
Nepal faces fragmentation and unpredictability, with traditional parties attempting reinvention while newer parties consolidate forces. Ideological contradictions, internal party tensions, and the sheer number of small parties complicate governance and policy continuity.
Regional implications:
These domestic political challenges hinder broader regional cooperation. Weak democratic consolidation can exacerbate instability, reduce investor confidence, and limit the effectiveness of collaborative initiatives in South Asia, including economic integration, climate resilience, and disaster response frameworks.

Case study overview:
The uprisings in Sri Lanka, Bangladesh, and Nepal show that domestic economic and political grievances often have regional repercussions. Youth-led movements have reshaped party politics, challenged authoritarian tendencies, and created openings for new political actors. However, these domestic changes also influence bilateral and regional dynamics, including India’s role.
Regional dynamics:
India’s response to these movements—balancing aid with political engagement—illustrates the tension between domestic political priorities and broader regional strategy. Perceptions of interference or favoritism can generate anti-India sentiment, affecting trade and cooperation. Similarly, leadership changes in neighboring states alter the calculus for regional forums and agreements.
Implications:
This interplay highlights the importance of coherent regional strategy that respects domestic political contexts. For India and other South Asian countries, recognizing the long-term economic and social drivers behind uprisings is critical to fostering stability, cooperation, and democratic consolidation.

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