Examine the role of private-sector economic linkages, such as EV exports, in strengthening India's 'Neighbourhood First' policy.

'Neighbourhood First' rests on connectivity, trade and people-to-people ties. Nepal — which conducts nearly 60% of its foreign trade with India and draws 48% of its FDI from India [1] — shows how private commercial linkages, such as electric two-wheeler exports, can carry the policy where government-to-government agreements alone cannot.

How private linkages advance the policy

• Presence on the ground: Ather Energy entered Nepal in November 2023 as its first international market and has since built 14 experience centres and 31 fast-charging points, expanding its line-up in 2026 [5]. Dealerships, servicing and charging assets create local employment and a visible Indian stake.
• Deepened interdependence: private investment thickens an already dense economic relationship, converting trade dependence into shared commercial interest [1].
• Green-transition diffusion: exported EV technology lets Nepal substitute imported petroleum with its own hydropower, aligning with SDG-7 and SDG-13.
• Continuity across political cycles: commercial ties persist through changes of government, giving diplomacy a stable base.

Domestic policy as the enabler

• The PLI-Auto Scheme, approved 15 September 2021 with a ₹25,938 crore outlay, incentivises Zero Emission Vehicles at 13–18% and built the manufacturing scale that makes exports viable [2].
• Demand-side incentives (FAME-II, PM E-DRIVE) created a large home market — over ten lakh electric two-wheelers supported [3] — while cumulative PLI investment has crossed ₹35,657 crore [4].

Limits to be examined

• Gains are firm-led and uneven; outcomes depend on host-country distributors and charging infrastructure, not Indian state capacity.
• Neighbours may read growing Indian market share as asymmetry, especially amid persistent trade deficits.
• Non-tariff barriers, transit bottlenecks and competitively priced Chinese EVs can erode the advantage.

Private-sector linkages therefore act as a force multiplier, not a substitute, for state diplomacy. Pairing export push with cross-border charging standards, rupee-based settlement and neighbour-friendly transit terms would convert commercial presence into durable goodwill — the substantive content 'Neighbourhood First' aims for.