Model Answer

Power diplomacy uses cross-border energy cooperation to build economic interdependence and strategic trust. India’s electricity links with Bangladesh, Nepal and Bhutan increasingly make energy connectivity an instrument of its Neighbourhood First policy.

Power as a pillar of neighbourhood relations

1. Hydropower anchors India-Bhutan economic ties. e.g: 1,020 MW Punatsangchhu-II project.
2. Electricity trade monetises Nepal’s vast hydropower potential. e.g: India-Nepal agreement targets 10,000 MW exports to India within ten years.
3. India enables third-country electricity trade. e.g: Nepal exports 40 MW to Bangladesh through the Indian grid.
4. Bangladesh gains reliable cross-border electricity supplies. e.g: Tripura-Cumilla transmission link.
5. Cooperation is diversifying into clean energy. e.g: India-Bhutan Joint Vision covers hydropower, solar and green hydrogen.

Advancing India’s strategic and economic interests

1. Energy interdependence creates durable stakes in stable bilateral relations. e.g: Long-term power purchase arrangements with Bhutan.
2. Infrastructure connectivity strengthens India’s regional influence. e.g: Cross-border transmission lines with Nepal.
3. Hydropower complements India’s variable renewable generation. e.g: Himalayan hydro supporting peak electricity demand.
4. Regional trade creates opportunities for Indian investment. e.g: Indian participation in Nepalese hydropower projects.
5. India can emerge as the hub of South Asian electricity flows. e.g: Nepal-Bangladesh trade routed through India.

Towards regional energy integration

1. Trilateral trade moves South Asia beyond purely bilateral arrangements. e.g: Nepal-India-Bangladesh power transaction.
2. Regional grids improve energy security through complementary generation and demand.
3. Clean electricity trade supports regional decarbonisation.
4. Political tensions can disrupt long-term energy cooperation.
5. Transmission bottlenecks, pricing disputes and regulatory differences constrain integration.

Way Forward

1. Establish predictable cross-border electricity trading rules.
2. Expand BBIN transmission corridors and multi-country power exchanges.
3. Integrate hydropower with solar, storage and green hydrogen.

Power diplomacy can transform geographical proximity into strategic interdependence. An integrated regional electricity market can simultaneously strengthen India’s energy security, neighbourhood partnerships and regional leadership.