India's timely response during the economic crises in Sri Lanka and the Maldives reflects its 'Neighbourhood First' policy in action. Examine how Indian aid has impacted bilateral ties with these nations. What steps can further be taken to promote sustainable economic cooperation in the Indian Ocean region? (Answer in 250 words)

The Neighbourhood First Policy of India entails timely support to immediate neighbours for shared prosperity conducive specifically. In alignment with this, India helped Sri Lanka amidst economic crises and maldives amidst water crises INDIA'S TIMELY RESPONSE AND IMPACT ON BILATERAL TIES (1) India as first time responder enhanced image of Net Security Provider (2) Shift away from past animosity (3) Helps reconcile and move past historical grudges (during India out campaign in Maldives) (4) India's guarantee for IMF loan to Sri Lanka to restore faith and credibility (5) Opens doors for further trade and commerce. India as largest trading partner of Sri Lanka (6) Enhances soft power capability and aids cultural exchanges (during Godi Greek Performance in Maldives on Homi PM visit) (7) Improved security in Indian Ocean through Colombo Security Conduit involving India, Sri Lanka, Maldives CHALLENGES (1) China's sitting aggression in Indian Ocean by Hambadola Port (2) Debt trap diplomacy using deep pocket by Maldives debt (more than 70% owned to China) (3) Rising protectionism and geo-economic fragmentation

STEPS TO FURTHER PROMOTE ECONOMIC COOPERATION IN IOR (1) Leveraging multilateral arrangements to further engagement - BIMSTEC, ISA, SAARC (2) Capacity building using technical and economic cooperation (3) Maritime cooperation using joint exercises via MAHASAGAR (4) Disaster Preparedness and monitoring mechanisms (5) People to People ties to further cultural exchanges - Project Mausuri India's advocacy as voice of Global South and policy of Vasu Bahujan Kututstkam would go a long way in balancing national interests with regional interests