Exp) Option d is the correct answer.

The Gujral Doctrine is a milestone in India’s foreign policy. It was propounded and initiated by the then Foreign Minister I.K. Gujral in 1996, in the Deve Gowda Government. The Doctrine is a set of five principles to guide the conduct of foreign relations with India’s immediate neighbours. These five principles arise from the belief that India’s stature and strength cannot be isolated from the quality of its relations with its neighbours. It, thus, recognizes the supreme importance of friendly, cordial relations with neighbours. These principles are:

• With neighbours like Bangladesh, Bhutan, Maldives, Nepal and Sri Lanka, India does not ask for reciprocity but gives and accommodates what it can in good faith and trust.
• No South Asian country should allow its territory to be used against the interest of another country of the region.
• No country should interfere in the internal affairs of another.
• All South Asian countries must respect each other’s territorial integrity and sovereignty.
• They should settle all their disputes through peaceful bilateral negotiations. Impacts and Application of Gujral Doctrine:
• The Doctrine led to the resolution of the water-sharing dispute with Bangladesh (and not Pakistan) in just three months in 1996-97. (Statement 1 is incorrect)
• This almost coincided with the treaty with Nepal for taming the Mahakali River for the generation of hydel power.
• It was followed by agreements with Sri Lanka for expanding development cooperation.
• Also, it led to the starting of composite dialogue with Pakistan.
• The composite dialogue was based on the principle that while entire spectrums of relationships came under sincere problem-solving dialogues.
• Cooperation must begin on agreed terms in agreed areas (trade, travel, culture etc.) even as certain disputes remained unresolved (Kashmir, terrorism).

Statement 2 is incorrect: The Gujral Doctrine advocates that India, being the biggest country in South Asia should extend unilateral concessions to the smaller neighbours. The Gujral doctrine is formulated on India’s accommodating approach towards its smaller neighbours on the basis of the principle of non-reciprocity. It recognizes the supreme importance of friendly and cordial relations with India’s neighbours. Hence the doctrine does not focus on India’s diplomatic relations with Southeast Asian Nations.

Statement 3 is incorrect: IK Gujral can be remembered for two significant contributions to Indian foreign policy. One, he propounded the ‘Gujral doctrine which is considered a milestone in India’s foreign policy. Two, despite international pressure, Gujral firmly refused to sign the Comprehensive Test Ban Treaty (CTBT) in October 1996.Hence refusal to sign the CTBT is not related to the Gujral Doctrine.