India Faces New Foreign Policy Challenges Amid Trump’s Tariff Critique, Xi’s Diplomatic Gesture, and Putin’s Oil Strategy

India’s foreign policy is currently navigating a complex landscape marked by shifting alliances and geopolitical tensions. As Prime Minister Narendra Modi prepares for a meeting with Chinese President Xi Jinping in Beijing, the dynamics of India’s relationships with major powers, including the United States and Russia, are under scrutiny. With the backdrop of a multipolar world, India is attempting to balance its interests amid rising challenges, particularly from the U.S. and China.

India’s Strategic Balancing Act

For over a decade, India has positioned itself as a key player in a multipolar world, balancing its relationships with major powers. Indian Foreign Minister S. Jaishankar articulated this approach in his 2020 book, emphasizing the need to engage with the U.S., manage relations with China, and cultivate ties with other nations. However, recent developments have put this strategy to the test. The U.S. has shifted from being an ally to a critic, particularly under the Trump administration, which has accused India of supporting Russia through discounted oil purchases. This has led to increased tariffs and a more strained relationship.

As India prepares for Modi’s meeting with Xi, analysts suggest that this engagement is less about triumph and more about pragmatic diplomacy. India finds itself in a unique position, being part of the U.S.-led Indo-Pacific Quad alongside Japan, Australia, and the U.S., while also being a member of the Shanghai Cooperation Organisation (SCO), a bloc that includes China and Russia. This dual membership reflects India’s desire for strategic autonomy, allowing it to leverage its position rather than be exposed to the vulnerabilities of aligning too closely with any one power.

Challenges in Economic and Military Capacity

Despite its ambitions, India’s economic and military capabilities present significant challenges. With a $4 trillion economy, India ranks as the fifth largest globally, but it remains dwarfed by China’s $18 trillion and the U.S.’s $30 trillion economies. Furthermore, India’s military-industrial base is limited, as it is the second-largest importer of arms but not among the top five exporters. This reliance on foreign military technology complicates India’s diplomatic efforts, especially in the context of its ongoing trade deficit with China, which stands at $99 billion.

The recent thaw in relations with China, following the deadly clashes in Galwan in 2020, underscores the complexities of India’s foreign policy. China’s envoy in Delhi has criticized U.S. tariffs on Indian goods, while Chinese Foreign Minister Wang Yi has called for a partnership between India and China. However, the question remains: why is India seeking dialogue with Beijing now? Strategic affairs scholar Happymon Jacob suggests that managing China will be a core focus for India in the coming decades, indicating that the relationship’s dynamics are crucial for regional stability.

India’s Relationship with Russia

India’s ties with Russia remain strong, despite U.S. pressure to distance itself from Moscow. Discounted oil from Russia is vital for India’s energy security, and Jaishankar’s recent visit to Moscow signals a commitment to maintaining this relationship. Analysts note that India’s deepening ties with Russia are driven by concerns over a closer alignment between Moscow and Beijing, as well as the deteriorating relationship with Washington under Trump.

Despite the challenges, historical precedents suggest that India and the U.S. can overcome significant rifts when strategic interests align. Past sanctions following India’s nuclear tests did not prevent the two countries from eventually forging a landmark civilian nuclear deal. The current situation raises questions about the future shape of U.S.-India relations and whether they can adapt to changing geopolitical realities.

The Path Forward for India

As India grapples with its foreign policy choices, experts emphasize the importance of strategic patience. Ashley Tellis from the Carnegie Endowment argues that India’s flirtation with multipolarity could undermine its security, advocating for a closer partnership with the U.S. to counterbalance China. Conversely, former Indian ambassador Nirupama Rao suggests that India’s size and ambitions necessitate a flexible approach, allowing it to navigate a world that is increasingly complex.

Ultimately, India’s options appear limited. The rivalry with China is expected to persist, while its relationship with Russia remains valuable but constrained. As for the U.S., despite the challenges posed by Trump’s administration, the stakes in U.S.-India relations are too high for either side to allow a complete breakdown. Analysts agree that India’s best strategy may involve absorbing the pressures from the U.S. while maintaining its autonomy and leveraging its unique position in the global order.


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