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India and Its Neighbourhood
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India and Major Powers
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Indo-Pacific and Global Institutions
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Chapter 1: India and Its Neighbourhood
Chapter Test2 topics•Estimated reading: 6 minutes
India–China Relations: Cooperation, Competition and the Border
Key Point
India and China—two civilisational states and the world's most populous countries—share a disputed 3,488 km border (the Line of Actual Control). Relations swing between engagement and confrontation: the 1962 war, confidence-building agreements of the 1990s, standoffs at Doklam (2017) and the deadly Galwan clash (2020), and a gradual thaw after the October 2024 patrolling agreement. China is a major trading partner, but India runs a huge trade deficit and sees strategic competition across South Asia and the Indian Ocean.
India and China—two civilisational states and the world's most populous countries—share a disputed 3,488 km border (the Line of Actual Control). Relations swing between engagement and confrontation: the 1962 war, confidence-building agreements of the 1990s, standoffs at Doklam (2017) and the deadly Galwan clash (2020), and a gradual thaw after the October 2024 patrolling agreement. China is a major trading partner, but India runs a huge trade deficit and sees strategic competition across South Asia and the Indian Ocean.
Detailed Notes (22 points)
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1. Historical Background
Panchsheel (1954) and 'Hindi–Chini bhai bhai'; Dalai Lama's asylum (1959); 1962 war over Aksai Chin and the McMahon Line.
Normalisation: Rajiv Gandhi's visit (1988); agreements on maintaining peace and tranquillity on the LAC (1993, 1996, 2005, 2012, 2013); Special Representatives mechanism (2003).
2. Border Tensions
Undemarcated LAC with differing perceptions in western (Ladakh), middle and eastern (Arunachal Pradesh) sectors.
Depsang (2013), Chumar (2014), Doklam (2017), and Galwan (June 2020), where 20 Indian soldiers died—the first fatal clash in decades.
Disengagement at Pangong Tso (2021) and Gogra–Hot Springs (2022); an agreement on patrolling in Depsang and Demchok (October 2024), followed by a Modi–Xi meeting at the BRICS summit in Kazan.
Steps to rebuild ties in 2025, including resumption of the Kailash Mansarovar Yatra.
3. Economic Relations
China is among India's largest trading partners, but the trade deficit is close to $100 billion a year (2024-25).
Dependence on Chinese electronics, APIs for pharmaceuticals, solar components and rare-earth magnets.
India's responses: Press Note 3 (2020) requiring approval for investment from bordering countries, app bans, PLI schemes to diversify supply chains.
4. Strategic Competition
China–Pakistan axis and CPEC through Pakistan-occupied Kashmir (India opposes BRI on sovereignty grounds).
Chinese presence in Sri Lanka (Hambantota), Maldives, Nepal, Bangladesh, Myanmar ('string of pearls').
Blocking India's NSG membership; earlier blocking of terrorist listings at the UN.
Water: Dams on the Yarlung Tsangpo (Brahmaputra), including a mega project begun in 2025; lack of a water-sharing treaty (only data-sharing MoUs).
Stapled visas and renaming of places in Arunachal Pradesh.
5. Areas of Cooperation
BRICS, SCO, climate negotiations (both developing countries), WTO positions, multipolar world.
6. India's Approach
'Peace on the border is the basis of normal relations'; firm military posture with infrastructure on the LAC (roads, Vibrant Villages), economic de-risking, partnerships (Quad), while keeping dialogue open.
Key events in India–China relations
| Year | Event |
|---|---|
| 1954 | Panchsheel agreement |
| 1962 | Sino-Indian war |
| 1988 | Rajiv Gandhi's visit; normalisation |
| 1993 | Agreement on peace and tranquillity along the LAC |
| 2017 | Doklam standoff |
| 2020 | Galwan clash |
| 2024 | Patrolling agreement for Depsang and Demchok |
Fun Facts
Buddhism travelled from India to China; Chinese pilgrims Faxian and Xuanzang left detailed accounts of India.
Dr. Dwarkanath Kotnis served as a doctor in China during the Second Sino-Japanese War and is honoured in China.
India and China together account for over a third of the world's population.
Mains Key Points
India–China ties combine cooperation, competition and confrontation; managing them requires deterrence plus dialogue.
Economic dependence on China is a strategic vulnerability; de-risking through domestic manufacturing and diversified partners is essential.
Border infrastructure and military readiness are the foundation of credible negotiation.
Water security on the Brahmaputra needs a binding data and consultation mechanism.
Both countries share interests in a multipolar world and reform of global institutions, which can be a basis for limited cooperation.
Prelims Strategy Tips
India–China border length: about 3,488 km.
The McMahon Line was drawn at the Simla Convention (1914).
Aksai Chin is in the western sector; Arunachal Pradesh in the eastern sector.
Press Note 3 (2020) requires government approval for FDI from countries sharing land borders with India.
Galwan valley is in eastern Ladakh.
Neighbourhood First: India's Relations with South Asian Neighbours
Key Point
India's Neighbourhood First policy prioritises connectivity, development partnerships and people-to-people ties with South Asian neighbours, complemented by Act East and MAHASAGAR (the 2025 successor to SAGAR) for the Indian Ocean. Each relationship has its own challenges: terrorism from Pakistan, political transition in Bangladesh, boundary and treaty issues with Nepal, Chinese influence in Sri Lanka and the Maldives, and instability in Afghanistan and Myanmar.
India's Neighbourhood First policy prioritises connectivity, development partnerships and people-to-people ties with South Asian neighbours, complemented by Act East and MAHASAGAR (the 2025 successor to SAGAR) for the Indian Ocean. Each relationship has its own challenges: terrorism from Pakistan, political transition in Bangladesh, boundary and treaty issues with Nepal, Chinese influence in Sri Lanka and the Maldives, and instability in Afghanistan and Myanmar.
Detailed Notes (20 points)
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1. Pakistan
Kashmir dispute, cross-border terrorism (2008 Mumbai, 2016 Uri, 2019 Pulwama, 2025 Pahalgam); India's responses include surgical strikes (2016), Balakot (2019) and Operation Sindoor (May 2025).
After Pahalgam, India placed the Indus Waters Treaty (1960) 'in abeyance' and curtailed trade and visas; dialogue remains suspended over terrorism.
2. Bangladesh
Close ties built on the 1971 liberation, the Land Boundary Agreement (2015), energy and rail connectivity, and trade.
Political change in August 2024 (end of Sheikh Hasina's government) brought uncertainty; issues include minority safety, border management, Teesta water sharing, and renewal of the Ganga Water Treaty (1996), which expires in 2026.
3. Nepal
Open border under the 1950 Treaty of Peace and Friendship; deep cultural ties; hydropower cooperation (agreement to import power from Nepal).
Irritants: Kalapani–Lipulekh–Limpiyadhura map dispute (2020), Nepal's demand to revise the 1950 treaty, Chinese influence.
4. Bhutan
Special relationship (1949 treaty revised in 2007), hydropower partnership, India as the largest development partner; Doklam's strategic importance; support for Bhutan's Gelephu Mindfulness City.
5. Sri Lanka
India provided about $4 billion in support during Sri Lanka's 2022 economic crisis; issues include Tamil reconciliation (13th Amendment), fishermen disputes, Katchatheevu and Chinese presence (Hambantota port); defence cooperation agreement signed in 2025.
6. Maldives
'India Out' campaign (2023) and replacement of Indian military personnel with civilians (2024), followed by renewed engagement—currency swap support and the PM's visit in 2025.
7. Afghanistan and Myanmar
Afghanistan: Humanitarian aid after the Taliban takeover (2021); technical team in Kabul; concerns about terrorism.
Myanmar: Kaladan multimodal project, India–Myanmar–Thailand Trilateral Highway; 2021 coup and conflict near the border; decision to fence the border (2024).
8. Regional Platforms
SAARC stalled since 2016; BIMSTEC and BBIN as alternatives; development partnerships through lines of credit and grants.
Neighbours: key issues
| Country | Cooperation | Key issue |
|---|---|---|
| Pakistan | Limited (Kartarpur corridor) | Cross-border terrorism, Kashmir |
| Bangladesh | LBA 2015, connectivity, energy | Political transition, Teesta, Ganga treaty renewal |
| Nepal | Open border, hydropower | Map dispute, 1950 treaty |
| Bhutan | Hydropower, development aid | Chinese pressure on boundary |
| Sri Lanka | Crisis support, energy | Fishermen, Chinese presence |
| Maldives | Security, development projects | Swings in political orientation |
Fun Facts
The Kartarpur Corridor (2019) allows Indian pilgrims visa-free access to Gurdwara Darbar Sahib in Pakistan.
Nepalese citizens serve in the Indian Army's Gorkha regiments.
India supplied the first COVID-19 vaccines to Bhutan and the Maldives in January 2021.
Mains Key Points
A stable, prosperous neighbourhood is essential for India's security and rise; asymmetry demands generosity and sensitivity (Gujral Doctrine).
China's growing presence makes timely delivery of Indian projects critical.
Domestic politics in neighbours (anti-India campaigns) can swing ties; engagement must be with societies, not just governments.
Connectivity, energy trade and crisis support have proved India's value as a 'first responder'.
Terrorism remains the core obstacle to normal ties with Pakistan.
Prelims Strategy Tips
Indus Waters Treaty (1960) was brokered by the World Bank.
Ganga Water Treaty with Bangladesh was signed in 1996 for 30 years.
India–Nepal Treaty of Peace and Friendship: 1950.
MAHASAGAR was announced in Mauritius in March 2025 as an expanded vision of SAGAR.
Kaladan project links Kolkata to Sittwe port in Myanmar.
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