India’s global role is at a critical juncture in 2025. Recent events have exposed the limits of its strategic partnerships. Operation Sindoor, India’s retaliation against terrorist attacks, brought into light the reluctance of some allies to confront Pakistan. Meanwhile, shifting global alliances and trade conflicts have complicated India’s diplomatic and economic landscape.
Operation Sindoor and Terrorism Challenges
Recently, the Pahalgam attack by Lashkar-e-Taiba terrorists from Pakistan triggered Operation Sindoor. India’s swift military response targeted terror camps across the border. Despite decisive action, India struggled to gain international support. The United States under President Donald Trump downplayed India’s role, claiming credit for a ceasefire. Pakistan received unexpected diplomatic courtesies from the U.S., even as the U.S. designated The Resistance Front as a terrorist organisation. The UN Security Council also named this group in its reports, validating India’s position.
India-U.S. Relations and Trade Tensions
India’s relationship with the U.S. has faced new strains. The launch of the India-U.S. NISAR satellite was overshadowed by Trump’s imposition of a 25% tariff on Indian goods. Trade disputes escalated into geopolitical issues. The U.S. threatened higher tariffs on Indian imports of Russian oil, citing the Ukraine conflict. Trump’s call for American companies to prioritise U.S. jobs over Indian investments further strained ties. These moves came amid America’s focus on rapprochement with Russia and a reorientation towards Indo-Pacific allies and Europe.
European Union’s Role and Trade Barriers
The EU’s policies have also challenged India’s trade and energy security. The EU sanctioned India’s Vadinar Refinery due to Russian stakes, pressuring India’s oil imports. Meanwhile, several EU countries continued importing Russian energy under exemptions. The EU’s carbon border tax and digital trade barriers remain hurdles. India’s recent India-U.K. Comprehensive Economic and Trade Agreement aims to influence EU negotiations, but tensions persist.
China’s Strategic Moves in South Asia
China has capitalised on India’s diplomatic difficulties. It proposed new regional groupings excluding India and strengthened ties with Pakistan and Bangladesh. China’s revival of a WWII airbase near the Siliguri Corridor and naming Indian territories in Mandarin reflect assertive posturing. Beijing’s control over critical supply chains and plans for a large dam on the Brahmaputra river add to India’s strategic concerns. India’s outreach to the Maldives is part of efforts to counterbalance China’s influence.
India’s Diplomatic Strategy and Global Positioning
India is navigating a complex geopolitical environment with caution. It seeks to reset relations with China after border conflicts but faces no major de-escalation yet. India’s silence on global conflicts like the Israel-Gaza war and Israel-Iran tensions signals a cautious approach but risks diminishing its influence. The country realises that greater global engagement is necessary to protect its interests. India is pushing back against perceived double standards from the U.S. and EU while pursuing multi-alignment through BRICS, the Shanghai Cooperation Organisation, and East Asian forums.
Economic Growth and Geopolitical Linkages
India’s economic ambitions are intertwined with its geopolitical strategies. The era of ignoring global conflicts to focus solely on economic growth is over. Protectionism, coercion, and shifting alliances shape technological and trade outcomes. India recognises that securing its economic future requires a robust geopolitical stance. Efforts to conclude trade deals with the U.S. and deepen partnerships with other global players are underway to maintain strategic autonomy.
Questions for UPSC:
- Point out the impact of trade protectionism on India’s economic growth and international relations in the contemporary global order.
- Critically analyse the role of regional groupings like BRICS and the Shanghai Cooperation Organisation in shaping India’s foreign policy strategy.
- Estimate the strategic implications of China’s infrastructure projects on the Brahmaputra river for India’s national security.
- What is India’s multi-alignment policy? How does it help India manage its relations with major powers like the U.S., China, and the EU?
