An Indian serving naval officer, Kulbhushan Yadav got arrested by the law enforcement agencies of Pakistan in March 2016, when he was trying to enter Pakistan from the Saravan region, located in Balochistan, Pakistan. India’s involvement has created serious implications for the national security and economic progress of Pakistan. Furthermore, this may eventually lead to permanent instability in the region. The United Nations (UN) was also provided with the dossiers of the Indian patronage to the insurgent groups in Balochistan by the Government of Pakistan (GoP) regarding terrorist activities being funded and monitored by the Research Analysis Wing (RAW) ─ the Indian intelligence agency. The paper argues that the Indian interference in the neighbouring countries, particularly in Pakistan, is causing instability. It will try to examine the Indian interference in its neighbouhood in the light of The Arthashastra, a book written by Kautilya during the Chandragupta Maurya’s reign. What choices does a resilient Pakistan have in order to counter the consequences of a hegemonic India in the light of Kautilya’s theory? Suppression of an immediate neighbour (Pakistan) and friendship with the distant neighbours (Afghanistan and Iran) is what the theory suggests.