India’s foreign policy is at a critical juncture. As global and regional shifts unfold, it’s clear that minor adjustments won’t suffice. What India needs now is a profound reevaluation of its international stance. This should be based not on sentimental alliances or performative diplomacy, but on pragmatic realism, assertive self-interest, and economic credibility.
India’s Anxious Embrace of the West
Historically, India has oscillated between non-alignment and bandwagoning, often misinterpreting Western approval as a strategic gain. Over the past decade, India has moved closer to the United States, primarily in the hope that shared democratic values and security interests would foster a lasting partnership.
The events of 2025 have clearly revealed the limitations of this strategy. Triggered by disputes over Russian oil imports and trade, the Trump administration implemented punitive tariffs now at an unprecedented 50% on Indian exports, severely straining bilateral relations. “India strongly denounced the measures as ‘unfair, unjustified and unreasonable,’ asserting that its energy policy and supply chains are independent and grounded in its strategic autonomy,” according to official statements.
Analysts have called this the “worst crisis in two decades” of U.S.–India relations, potentially pushing India closer to Russia and China. Former U.S. Ambassador Kenneth Juster described the tariffs as a “significant setback.”
At the same time, Fareed Zakaria warned that such actions could undo 25 years of progress and weaken the only viable counterbalance to China in Asia.
India also encounters xenophobic challenges in the US, with Indian professionals targeted by the American right-wing and anti-immigrant rhetoric gaining political influence in Washington circles. This highlights how superficial and situational identity-based support can be and how ultimately transactional the superpower relationship is.
The Illusion of Economic Strength
Foreign policy is most credible when supported by economic strength. India’s growth figures have been impressive by some measures: GDP increased by 7.8% in Q2 of 2025, surpassing market expectations and marking the highest rate in five quarters. However, long-term forecasts suggest a slowdown, with growth expected to be 6.5% by 2026 and 5.5% by 2027, revealing ongoing vulnerabilities despite short-term gains.
Domestic realities still influence this story: persistent unemployment, under-investment in manufacturing, and overreliance on imported technologies weaken the impact suggested by headline figures. Year India GDP Growth (YoY) | Notes 2024 | 6.4% | Growth rebounded after pandemic slowdown Q1 25 | 7.4% | Marked acceleration, driven by consumption Q2 25 | 7.8% | Highest in 5 quarters, but trends moderate 2026* | 6.5% (proj) | Projected drop, global/investment shocks
*Source: Trading Economics, PIB, Deloitte[6][7][5]
Diplomatic Drift: Friends Lost, Neighbours Alienated
India’s obsession with Western validation has come at a cost. The country has alienated reliable friends and neighbours while failing to build strong alternatives. Traditional ties with Russia have weakened as Moscow increasingly leans towards Beijing and supplies defence technology to India’s rivals.
Meanwhile, relations within South Asia remain tense. As one recent analysis stated, “our policy, constrained by our economic and technological weakness, seems to be stuck in a time warp.” India often swings between aligning with the US to contain China and seeking a multipolar balance through BRICS and the SCO, which causes dissatisfaction both domestically and internationally.
Even within BRICS, India’s partnership faces scepticism in Washington, as recently demonstrated during the 2025 trade crisis. When India opted for strategic autonomy, refusing to credit President Trump for peace mediation during the Pahalgam conflict, trade sanctions ensued.
Domestic Fault Lines, International Friction
India’s foreign policy cannot be separated from its internal divisions. Religious polarisation, mainly the Hindu–Muslim divide, influences narratives of hostile neighbours and restricts diplomatic flexibility. International forums increasingly question India’s secular credentials, and diaspora communities face growing identity crises abroad.
Moreover, the tendency to boast about achievements before securing results, such as “atmanirbhar” manufacturing or global market leadership, reveals the gap between rhetoric and reality. External partners quickly recognise the difference between glitter and gold, demanding results supported by economic and technological resilience.
The Peril of Reactive Diplomacy
Recent diplomatic history demonstrates India’s tendency to respond rather than influence outcomes. After the U.S. imposed progressively higher tariffs on Indian goods in August 2025, reaching 50%, India’s initial response was measured and defensive, focusing on diversifying trade relationships and strengthening domestic resilience, rather than adopting a more proactive regional stance. This cautious approach also extended to defence procurements from the U.S., which were reportedly put on hold, risking vital modernisation efforts and undermining multilateral security coordination, including the prospects of the Quad partnership.
Meanwhile, India’s neighbours, especially in the Middle East, have become wary as New Delhi’s alignment with Western powers seems to overshadow regional priorities, weakening traditional goodwill and trust. Supporting this, Australian Foreign Minister Penny Wong recently pointed out that influence in international relations is shaped more by open trade and balanced partnerships than by tariff wars and performative alignments, emphasizing the need for India to move beyond reactive measures toward proactive, strategic diplomacy. India’s government has focused on internal strengthening through initiatives like Atmanirbhar Bharat and Make in India to tackle external economic challenges and sustain long-term strategic autonomy.
Toward a Foreign Policy of Realism and Self-Respect
The world values clarity and purpose. India must: –
Expand partnerships, particularly in Eurasia, Africa, and Southeast Asia, to reduce overreliance on Western markets and technology.
Anchor external engagement in domestic strength: infrastructure investment, harmony, and realistic economic data.
Champion silent effectiveness over loud diplomacy; credibility grows from consistent results, not media optics.
Rebuild trust with estranged neighbours through humility, shared development, and cultural understanding diplomacy.
Advocate for diaspora interests assertively, not merely as a community but as a strategic tool.
India’s recent experience with punitive tariffs and diplomatic snubs offers valuable lessons. Former diplomat Vikas Swarup and Krystle Kaul, U.S. NATO advisor, both warn that “undoing 25 years of progress with the only viable counterbalance to China in Asia would be a major strategic disaster.” India’s resilience should focus not only on enduring crises but also on actively shaping the future through proactive diplomacy. This is the key to India’s future leadership in the global arena.
Conclusion: Seizing the Moment
India’s foreign policy must go beyond its self-imposed limits and adopt a more strategic attitude, confidently engaging with the world. As the crisis with the U.S. showed, old alliances can weaken, and a new era requires boldness. It is time to replace illusions and defensive postures with a foreign policy grounded in humility, realism, national dignity, and the resilience to seize opportunities for genuine leadership.
Only then can India earn respect and achieve results, rising not as a supplicant, but as a shaper of its destiny.
About the author
Lt Col Manoj K Channan (Retd) served in the Indian Army, Armoured Corps, 65 Armoured Regiment, 27 August 83- 07 April 2007. Operational experience in the Indian Army includes Sri Lanka – OP PAWAN, Nagaland and Manipur – OP HIFAZAT, and Bhalra - Bhaderwah, District Doda Jammu and Kashmir, including setting up of a counter-insurgency school – OP RAKSHAK. He regularly contributes to Defence and Security issues in the Financial Express online, Defence and Strategy, Fauji India Magazine and Salute Magazine.
*Views are personal.