Bilateral ties between Hanoi and Delhi have been on the upswing in recent years with a focus on strategic cooperation and trade. While Vietnam sees India as a natural ally, India also treats Vietnam as one of its trusted and privileged partners. The strengthening of bilateral ties mainly results from changes in the two countries’ foreign policy agenda that aim to respond to shifts in the geostrategic landscape of the Indo-Pacific region.

The current chapter examines the drivers of the deepening partnership between India and Vietnam. It posits that the elevation of the India–Vietnam Strategic Partnership to a Comprehensive Strategic Partnership in September 2016 is a natural outcome of the increasing convergence of the two countries’ strategic interests and can contribute positively to the regional stability and prosperity.

The chapter starts with an introduction of India's foreign policy under the government of Prime Minister Narendra Modi, followed by a brief background of India–Vietnam relations. The chapter then analyses drivers of recent developments in bilateral ties and the various measures that both sides have taken to improve their relationship. Finally, the chapter concludes by assessing the implications of the deepening bilateral ties for the broader region.

India's Foreign Policy under Modi

As one of the fastest growing economies in an increasingly interdependent world, India has been pursuing an active international economic integration agenda, which has enabled the country to benefit from a wide range of economic engagements. At the same time, India's rising economic clout and diplomatic dynamism have uplifted its global status, bringing about remarkable transformations in the country's foreign policy. India now stands at a critical juncture, preparing itself to become a responsible stakeholder in the emerging global and regional economic and security architectures. The direction and key elements of Indian foreign policy are driven by both India's national interests and the political ideology of the party in power.

Introduction

Since the emergence of modern Nepal, its foreign relations, conditioned by its geography, have been remarkably limited. This chapter discusses the international significance of Nepal and seeks to shed light on the forces driving Nepal's foreign policy in recent decades. Like many countries with a powerful neighbor and significant economic interdependence across a long border, Nepal's ties with India, which dwarf all others, breed both familiarity and resentment. In this chapter, we discuss why this is likely to remain the case, even at a time when Nepal's links to China through Tibet are growing. Nepal is a hotbed of conspiracy theories that blame all internal problems on its southern neighbor, an unhappy disposition if it is to forge a more mutually beneficial relationship with New Delhi, which Nepal's current harsh economic and other realities cry out for.

This chapter starts by highlighting the importance of geography as a major determinant of Nepal's foreign relations and then provides a brief historical overview of Nepal's foreign relations over the past two centuries. It then examines the interests, concerns, and perceptions of Nepal and India with respect to each other, focusing on cooperation over water sharing that could considerably benefit both countries were more trust to develop between them. It subsequently examines China's increasing profile in Nepal and how it affects India–Nepal relations. The chapter concludes that Nepal has limited options to maneuver in its foreign relations and needs to focus on making the best of its geographical constraints through positive engagement, including with India.