The regional power India is facing a range of challenges to its dominance in regional relations in South Asia. Beyond its traditional and main challenger, Pakistan, also the smaller neighbouring states have been resisting India's efforts to effectively influence regional affairs. The paper discusses the difficulties India has been facing in its strategic interaction with countries like Sri Lanka, Nepal, and Bangladesh, whose historically and geopolitically determined threat perceptions have contributed to shape their foreign policy towards India. The notions of resistance and counter-hegemony are discussed and applied to the peculiarities of the regional level of analysis. Their application allows us to shed light on the patterns of strategic interaction between India and its smaller neighbours, highlighting the active role these countries can take in shaping regional order.