Neighbourhood First in Action: India’s Energy Diplomacy Gains Ground

Recent developments in South Asia have once again underscored a fundamental truth of geopolitics: the line between allies and adversaries is often fluid. Dramatic shifts witnessed across the region in recent months highlight how strategic compulsions can override political rhetoric, particularly in times of crisis.

At the heart of this transformation lies the ongoing conflict in West Asia involving Iran, which has triggered a severe energy crisis across Asia. As tensions escalated, the Strait of Hormuz—widely regarded as the world’s most critical energy corridor—became increasingly unstable. Nearly 90 per cent of crude oil shipments to Asia pass through this route, and disruptions have had immediate and far-reaching consequences.

Countries such as Pakistan, Bangladesh, and Sri Lanka have faced significant setbacks in fuel imports, leading to economic and operational disruptions. In contrast, India’s longstanding diplomatic ties with Iran ensured relatively smoother passage for its energy shipments, providing a crucial buffer during the crisis.

India Emerges as a Regional Stabiliser

Leveraging this advantage, India stepped forward to share its fuel resources with neighbouring countries, a move that has significantly altered the political climate in the region. Nations that had, until recently, adopted critical or adversarial positions towards India are now reassessing their stance in light of pressing economic realities.

Bangladesh: From Hostility to Cooperation

Following political upheaval and the exit of Sheikh Hasina, Bangladesh witnessed a surge in anti-India sentiment, with “Boycott India” campaigns gaining traction. However, the energy crisis severely impacted the country’s vital textile industry, triggering widespread power shortages and institutional shutdowns.

Faced with mounting economic strain, the interim government led by Tarique Rahman turned to India for assistance. The supply of diesel through the India-Bangladesh Friendship Pipeline helped stabilise industrial operations, marking a pragmatic shift in Dhaka’s approach towards New Delhi.

Maldives: Strategic Realignment

The Maldives presents another striking example of geopolitical recalibration. President Mohamed Muizzu rose to power on an “India Out” platform, seeking closer ties with China while distancing his country from India.

However, the ongoing crisis exposed the vulnerabilities of the island nation’s tourism-dependent economy. With aviation fuel shortages threatening to paralyse operations, and limited external support forthcoming, the Maldivian leadership was compelled to seek India’s assistance. India’s timely supply of fuel not only alleviated the crisis but also prompted a notable shift in rhetoric, with Muizzu acknowledging India as a reliable partner.

Sri Lanka: Renewed Dependence

Sri Lanka, still recovering from its 2022 economic collapse, found itself once again grappling with fuel shortages as global prices surged. Despite earlier attempts to maintain strategic distance from India, the government led by President Anura Kumara Dissanayake reached out to New Delhi for urgent support.

India responded swiftly, dispatching fuel shipments that provided immediate relief to the island nation. This intervention reinforced India’s role as a dependable partner, particularly in times of crisis.

Strategic Implications

These developments underscore the practical realities shaping foreign policy in South Asia. While political narratives and ideological positions may fluctuate, geographical proximity and economic interdependence remain decisive factors.

India’s “Neighbourhood First” policy has, in this context, moved beyond rhetoric to tangible action. By extending support even to countries that had previously distanced themselves, New Delhi has reinforced its position as a central pillar of regional stability.

The crisis has also highlighted the limitations of relying solely on distant global powers. For many South Asian nations, India’s geographic proximity and capacity for rapid response have proven indispensable.

A Defining Moment for Regional Cooperation

As the West Asian conflict continues to unfold, India’s proactive engagement offers an opportunity to rebuild and strengthen regional ties. The evolving dynamics suggest a broader shift towards pragmatic cooperation, driven by shared vulnerabilities and mutual interests.

Ultimately, this period serves as a reminder that in geopolitics, actions carry greater weight than rhetoric, and crises often reveal the true nature of partnerships. As the global order transitions towards a multipolar framework, India’s role—and responsibility—in shaping a stable and cooperative South Asia is set to grow further.