Reframing India's Foreign Policy Amid Eroding Multilateralism

As global power dynamics shift, India must redefine its foreign policy and strengthen endogenous capabilities beyond strategic autonomy.
PT
pocketias team
4 mins read
India rethinks strategic autonomy amid shifting global power balance
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India’s Foreign Policy in a Multipolar World

1.India and the Evolving World Order

India formally acknowledged the new global order in parliamentary discourse, recognizing that formulating a contemporary national identity and foreign policy approach is critical. The era of postcolonial multilateralism, where India leveraged the UN to represent Global South interests, is eroding amid rising powers and unilateral strategies by the U.S. and China.

India’s earlier leadership at the UN, particularly in climate negotiations and global South advocacy, relied on diplomatic acumen and intellectual leadership. However, China’s rise, creation of parallel international institutions, and significant aid volumes have reduced India’s leverage in traditional multilateral forums. The U.S. withdrawal from several UN institutions and the WTO’s evolving dysfunction further constrain India’s multilateral influence.

Neglecting these shifts risks India being sidelined in global governance, with diminished influence over trade, security, and technology rules shaping the 21st century.

Key Points:

  • Multilateralism is declining; asymmetry increasing
  • China’s global institutional influence growing
  • India’s comparative advantage: moral and intellectual leadership in the Global South

2. Strategic Autonomy: Evolution and Current Relevance

India’s Cold War-era strategic autonomy derived from leading the Non-Aligned Movement, allowing independent decision-making between U.S. and Soviet blocs. Post-1991, after the Soviet Union’s collapse, strategic autonomy became more of a self-declared identity than a functional policy tool.

Recent developments illustrate contradictions: joining the Quad (2017) aligned India with U.S. security goals, while procuring S-400 missiles from Russia (2018) signaled independence. The U.S. now perceives India as a “swing state” with potential to influence the multipolar balance, rather than a fully autonomous actor.

Failure to redefine strategic autonomy risks misalignment between India’s interests and its global partnerships, reducing diplomatic leverage in technology, defense, and trade.

Impacts:

  • Need to recalibrate Cold War-era policy concepts
  • Balancing Russia, U.S., and China becomes central to multipolar strategy

3. Power Politics and Bilateral Challenges

The global decline of multilateralism has returned international relations to asymmetric power politics. Key dynamics include:

  • U.S. tariffs and selective reciprocity under “America First”
  • India-U.S. Framework Agreement: India committed to doubling imports, while the U.S. maintains 18% unilateral tariffs
  • EU trade agreements involve phased reciprocal reductions, indicating structured negotiation

China’s approach contrasts with the U.S., leveraging multilateral rules for economic expansion and trade diversification, now influencing 120 countries.

Ignoring power asymmetries risks India being constrained in trade and technology access, impacting economic growth and geopolitical influence.

Comparative Example:

  • U.S.: transactional, unilateral approach
  • China: rules-based exploitation of multilateral frameworks

4. Reframing India’s Foreign Policy: Viksit Bharat 2047

India’s future foreign policy must shift from “strategic autonomy” to ‘Viksit Bharat 2047’, emphasizing development-centric diplomacy, talent leverage, and technology leadership. Key focus areas:

  • Human capital: nearly 50% of Silicon Valley’s workforce has Indian roots; leveraging this for AI, cybersecurity, and services
  • Economic diplomacy: diversify exports away from U.S., pursue FTAs with Asia and Africa, and secure industrial imports strategically
  • Technology partnerships: deepen relations with Russia for defense tech, enable China for manufacturing/infrastructure with safeguards
  • Regional cooperation: treat Pakistan as a foreign policy partner, focusing on water-sharing, trade, and the Iran-Pakistan-India Peace Pipeline
  • BRICS leadership: reposition BRICS as an economic cooperation forum, including digital currency integration for cross-border trade and tourism

“India’s comparative advantage lies in its young population… building and attracting that talent can develop the capability to become a ‘cyber super-power’.” — Editorial Source

Failing to modernize foreign policy may leave India dependent on asymmetrical partnerships, missing opportunities in the Asian Century and technology-led growth.

Policy Measures:

  • Low international profile initially, focus on endogenous capabilities
  • Prioritize trade and technology partnerships for economic leverage
  • Institutional innovation via BRICS to enhance economic coordination

5. Implications for National Development and Security

  • Economic Growth: Strategic export diversification and FTAs can mitigate tariff risks and strengthen GDP growth
  • Technology Leadership: AI and cybersecurity leadership enhance national security and global influence
  • Regional Stability: Constructive engagement with neighbors, including Pakistan, ensures regional peace and shared economic development
  • Global Standing: Proactive BRICS initiatives and multilateral leadership can offset declining UN influence

Integrated foreign policy aligning economic, technological, and regional strategies ensures India’s emergence as a key global pole by 2047.


6. Conclusion

India must transition from Cold War-era strategic autonomy to a development-focused, multipolar engagement strategy — Viksit Bharat 2047. By leveraging youth talent, diversifying trade, forging balanced technology partnerships, and repositioning regional institutions like BRICS, India can secure economic growth, geopolitical influence, and technological leadership in the evolving global order.

“India should bide its time, maintain a low international profile, and develop endogenous capabilities to accelerate the Asian Century.” — Editorial Source

Quick Q&A

Everything you need to know

Definition:
Strategic autonomy refers to India’s ability to independently formulate and pursue foreign policy decisions without undue reliance on any single global power. Historically, it was anchored in the leadership of the Global South and India’s role in the Non-Aligned Movement during the Cold War.
Evolution:
Post-Cold War, especially after the Soviet Union’s collapse in 1991, strategic autonomy became more of an identity marker than a functional policy. India has selectively aligned with global powers, such as joining the U.S.-led Quad in 2017 and procuring Russian S-400 missile systems in 2018, reflecting pragmatic choices within the strategic autonomy framework.
Contemporary relevance:
With the rise of China and U.S. unilateralism, India’s traditional multilateral leverage has diminished. Analysts now describe India as a 'swing state'—balancing relations with major powers while attempting to protect its developmental and security interests, illustrating the nuanced adaptation of strategic autonomy in a multipolar world.

Historical leadership:
India historically exercised outsized influence in multilateral forums such as the UN, particularly representing the interests of developing nations. Its diplomats shaped UN negotiating texts and guided climate negotiations, reflecting a dominant intellectual role.
Current challenges:
The rise of China as a global actor with extensive economic and security influence, along with U.S. withdrawal from key multilateral institutions, has weakened India’s leverage. China now heads multiple UN agencies, provides greater aid than Western countries, and has diversified trade partnerships globally, altering the dynamics of global governance.
Implications:
India’s ability to speak for developing countries has diminished. In a world increasingly driven by bilateral and asymmetric relations rather than multilateral consensus, India must recalibrate its strategy to maintain influence while pursuing economic and technological development objectives.

Focus on comparative advantages:
India should leverage its demographic dividend and technological expertise, particularly in IT, AI, and cybersecurity, to position itself as a 'cyber superpower' and secure development space.
Trade and economic diplomacy:
Diversifying exports beyond the U.S., expanding Free Trade Agreements with Asia and Africa, and maintaining a balance of imports and industrial partnerships will be crucial. India must continue pushing for strategic economic partnerships, even while mitigating bilateral vulnerabilities.
Technological and defense partnerships:
India should strengthen technological, cyber, and space collaboration with Russia, while cautiously engaging China in infrastructure and manufacturing projects with safeguards. Engagements with Pakistan should prioritize economic incentives over security confrontation, including trade agreements and regional projects like the Iran-Pakistan-India Peace Pipeline.
Multilateral leadership:
As chair of BRICS, India can redefine the bloc as an economic cooperation platform, including mechanisms such as linked digital currencies to facilitate cross-border trade and tourism, thereby asserting global influence in non-political spheres.

U.S. withdrawal and unilateralism:
The U.S. has withdrawn from or diminished its role in 31 UN institutions, rejected the WTO dispute settlement mechanism, and emphasized 'America First' policies, creating asymmetry in international trade and governance.
China’s rise:
China has exploited multilateral frameworks to expand its influence, diversify exports, and create alternative global institutions, undermining traditional Western-led multilateral structures.
Impact on India:
India’s capacity to advocate for developing countries and influence global norms has been curtailed. Reliance on multilateral dispute resolution is less effective, necessitating a shift to bilateral, regional, and strategic partnerships to protect economic and security interests in an increasingly transactional global order.

United States:
India participates in the Quad and maintains strong economic and technological ties with the U.S., while negotiating trade terms to protect domestic interests. For instance, under the India-U.S. Framework Agreement, India committed to doubling imports of industrial products, balancing concessions with U.S. tariffs.
Russia:
India continues to procure advanced defense systems like the S-400 missiles from Russia, reflecting a long-term, trusted military partnership that provides cutting-edge technology unavailable elsewhere.
China:
Despite geopolitical competition, India engages China in infrastructure and manufacturing partnerships, enabling trade diversification. This pragmatic engagement allows India to benefit economically while maintaining strategic caution, illustrating a multi-vector foreign policy approach.

Dependence on global powers:
India’s reliance on the U.S. for technology, Russia for defense, and China for trade indicates that complete independence in foreign policy is constrained. Multilateral platforms that once amplified India’s voice have weakened, reducing leverage.
Geopolitical pressures:
As a potential third-largest economy, India faces U.S. pressure to align against China and Russia. Tariff pressures, trade negotiations, and military technology access are instruments used to test India’s adherence to strategic autonomy.
Internal and regional challenges:
Domestic political considerations sometimes shape foreign policy, limiting flexibility. Additionally, India’s ability to influence global governance is less than during its leadership of the Global South, requiring pragmatic adaptation rather than idealistic independence.

Redefining BRICS:
India can reposition BRICS as an economic cooperation community rather than a purely political forum. By emphasizing trade, investment, and technology collaboration, it can create a platform for developing nations to enhance economic autonomy.
Digital currency and cross-border trade:
Implementing linked digital currencies among BRICS members could facilitate seamless cross-border trade, repatriation, and tourism payments, reducing dependency on the U.S. dollar.
Strategic benefits:
This economic focus allows India to assert leadership without overextending politically, attract investments, and build technology partnerships with China and Russia while maintaining strategic independence. Such initiatives could strengthen India’s position in a multipolar world and support the long-term vision of 'Viksit Bharat 2047'.

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