Once, Shri Atal Bihari Vajpayee said, ‘You Can Change Your Friends, But not Neighbours’. Neighbouring countries play very crucial role in maintaining regional Peace, Security and Cooperation. In 2014, when Shri. Narendra Modi assumed the office of Prime Minister; He paid his first official bilateral foreign visit to Bhutan. The second official bilateral foreign visit was to Nepal. Modi administration’s these initial visits highlight the approach of the government to International Politics. Since 2014, Modi government has been working on strengthening India’s position in the regional politics and consolidation of relations with neighbouring countries through initiatives such as Development diplomacy, Economic cooperation, Political relations through regular visits, Social diplomacy and Security and Defence Cooperation. The realistic approach of newly formed government to International Politics, pursue the National Interests of India in the region. Under Modi administration India has successfully maintained cordial relations with neighbouring countries but countries like Pakistan and China continue to pose the challenge to India. Pakistan’s cross border terrorism and China’s String of Pearls policy try to challenge the influence of India in the region. India has strategically succeeded in countering these two major security challenges. This article studies the Indian endeavors to maintain the cordial relations with neighbouring countries and also countering the major political, economic and security challenges from the region.