OPINION | Kathmandu, Dhaka Nudging New Delhi To Address Sticky Issues

India's Neighbours Are Demanding Answers On Borders, Water Sharing And Bilateral Ties As New Delhi Grapples With China's Growing Influence.

Rastriya Swatantra Party Chairman Rabi Lamichhane meets EAM S Jaishankar in New Delhi.

Source : ABP Live

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Key points generated by AI, verified by newsroom

• India's neighbourhood policy challenged by recent regional instabilities.
• Neighbors now confront India on critical border and resource issues.
• China's growing influence compels India to resolve neighbors' concerns.

India has been facing a dynamic neighbourhood ever since the Tatmadaw staged a coup in Myanmar took place on 1 February, 2021 forcefully ousting the incumbent government led by their democracy icon Aung San Suu Kyi. This incident unleashed a reign of terror in Myanmar even as a bloody civil war ensued that is continuing to this day resulting in the Tatmadaw losing vast swathes of territory to several resistance groups. India’s immediate response to the coup was silence, followed by a lip-service to return of democracy in that country.

The coup in Myanmar was followed by the Taliban takeover of Afghanistan in August 2021 with the entire country falling into the hands of the Islamist fundamentalist group like a pack of cards while the United States ended its longest war there and withdrew all its troops that were stationed in the war-torn country since 2001 to fight a never-ending war in response to the New York twin-tower attacks.

In March 2022, came the ‘Aragalaya’ movement in Sri Lanka that witnessed the violent ousting of the strongman regime under then President Gotabaya Rajapaksa in July of that year. As a severe economic crisis stared at Sri Lankans during Rajapaksa’s rule, the civilians went up in arms protesting against his policies and installed another government in its place under former President Ranil Wickremesinghe.

Then came the fall of the Sheikh Hasina-led Awami League government in Bangladesh in August 2024 that was spearheaded by the student political leaders of that country and then joined by the civilians. Hasina, in order to save her life, took refuge in India where she continues stay. Immediately after her ousting Bangladesh saw the coming in of an interim government under Nobel Laureate Muhammad Yunus. However, in February 2026, the country held its first ever elections since the civil unrest and brought back to power the  Bangladesh Nationalist Party (BNP).

While all these seem like a domino-effect to the layman’s eyes, in reality, these happenings were inevitable. But India, which under Prime Minister Narendra Modi, heralded ‘Neighbourhood Policy’ as the cornerstone of its foreign policy since he first came to power in 2014, was seen caught unaware by each of these developments. India was found coming up with ad-hoc measures in order to address each of these crises that threatened to upend its Neighbourhood First policy while proximity to China by its neighbours continued to get enhanced.

India's continued disregard for the activities and sentiments of its neighbouring countries has created a challenging dynamic. These countries are now confronting New Delhi on several important issues, including the resolution of border disputes, border management, and the fair sharing of natural resources-issues that New Delhi has often preferred to avoid.

Recently, Nepal's Prime Minister Balen Shah made waves with a bold and unexpected declaration, marking a significant shift from Kathmandu's previous diplomatic posture. He stated that Nepal, too, has encroached upon Indian territory, mirroring India's actions in their long-standing territorial claims. This candid admission sparked outrage among many Nepali politicians and lawmakers and reignited the heated debate surrounding the contested regions of Limpiyadhura, Lipulekh, and Kalapani.

Shah's statement, while controversial, served a dual purpose: it not only intensified the existing discord between the two nations but also sent a clear message to the international community. It highlighted that while New Delhi has often avoided addressing these challenging matters, smaller neighbouring countries like Nepal are willing to take the initiative and push for dialogue, urging India to confront these issues head-on.

In a newspaper editorial earlier this week, Nepal’s ruling party Rastriya Swatantra Party Chairman Rabi Lamichhane categorically told India not to brush “core issues under the rug” while referring to the long-standing border dispute.

During Lamichhane’s recent visit to India, Prime Minister Modi assured him, “Under our Neighborhood First policy, Nepal is a priority partner.” India should walk the talk now that Nepal’s Foreign Minister Shishir Khanal will be on a three-day visit to India on his maiden trip, New Delhi should seek to established the Foreign Secretary level mechanism on the border issue-something that Delhi had committed to set up with Nepal in 2014-15.

Meanwhile, Dhaka’s ruling Bangladesh Nationalist Party (BNP) has made it clear to New Delhi that if it is serious about resetting ties, then the Modi government has to accord priority to addressing the sticky issues of border management and sharing of transboundary rivers. The BNP has made it clear that only when these issues are put on the negotiating table will the bilateral ties become smooth.

India and Bangladesh are going to have talks on the border issues on 8-10 June. This is going to be first such dialogue that will take place between both sides after the BNP came to power in Dhaka in February 2026.

This is the time when India should start discussing the difficult issues with its neighbours instead of only promoting infrastructure projects which remain either incomplete or does not yield the desired outcome for its neighbours. While India extends over $15 billion in lines of credit to regional partners, implementation delays and red tape have frustrated neighbours. This is also the reason why China is often favored due to faster execution of similar development projects.

China's aggressive infrastructure diplomacy through the Belt and Road Initiative (BRI) has significantly reduced India's dominance. Nations like Sri Lanka and Nepal have increasingly leaned into Beijing for economic partnerships and investments, offsetting India's regional leverage. Recent developments in Bangladesh, such as Dhaka's growing water self-reliance and approval of alternative projects like the Padma Barrage, underscore a decreasing reliance on Indian goodwill and a challenge to India's regional influence.

India has the opportunity to take several immediate and strategic steps to allow for a gradual shift of its neighboring countries away from reliance on Beijing. One of the initial measures should be to institutionalize border talks with Nepal through a high-level dialogue mechanism. Establishing a consistent and structured framework for discussions would enable both nations to address border disputes and enhance bilateral cooperation, thus reinforcing mutual trust and understanding.

In relation to Bangladesh, it would be advantageous for New Delhi to prioritize the renewal of the Ganga Water Treaty, which governs the management of shared water resources between the two countries. Moreover, India should focus on finalizing the long-pending agreement on the River Teesta, a matter of significant importance given the strategic implications for India’s northeastern region.

China has announced that it is willing to finance and implement the Teesta River Comprehensive Management and Restoration Project in Bangladesh. This direct involvement of China in a critical water resource project raises serious strategic concerns for India, particularly due to the Teesta River’s proximity to the Siliguri Corridor, a vital passageway that connects the northeastern states to the rest of India.

Given these challenges, it is essential for India to take proactive measures without delay, rather than resorting to reactive strategies that may lead to unintended consequences. By taking the initiative to strengthen ties with its neighbours and addressing pressing issues like water management collaboratively, India can create a more stable and secure regional environment, thereby reducing the influence of external powers like China in South Asia.

Nayanima Basu is a senior independent journalist.

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