ISAS Insights

India’s perception of Chinese engagement in its neighbourhood is a major factor driving its ‘Neighbourhood Policy'. One of the best examples of how Indian sensitivities are affected by China’s engagement in its neighbourhood, is the case of Sri Lanka. The Indian reaction and its efforts to reduce Chinese influence in Sri Lanka, have resulted in negative outcomes for both India and Sri Lanka. This paper argues for a new approach in India’s Neighbourhood Policy that better reflects the realities on the ground.