India’s Strategic Shift in Asia and Global Power Dynamics

India’s foreign policy in 2025 is at a very important moment amid shifting global power patterns. The rise of Asia, evolving partnerships, and emerging technologies are reshaping India’s role on the world stage. The interplay between the U.S., China, and Russia influences India’s strategic choices. India is asserting its autonomy while engaging with multiple Asian and global powers to secure its economic and security interests.

Emerging Asian Power Centre

Asia is becoming the world’s central economic and political hub. It holds two-thirds of the global population and wealth. Regional groupings like BRICS, SCO, and ASEAN are increasingly interconnected. These alliances focus on shared economic interests rather than colonial legacies or Western frameworks. India is positioned to balance China’s influence due to its technological and economic strengths. Trade partnerships within Asia are vital for India’s growth prospects.

India’s Foreign Policy at a Crossroads

India is moving beyond binary choices of aligning strictly with the U.S. or China. It seeks strategic autonomy to pursue partnerships based on mutual benefit. India’s relations with China and Russia are improving even as it navigates U.S. pressures. The country aims to protect its growth trajectory without compromising its core interests. This includes managing border negotiations with China and maintaining defence ties with Russia.

Strategic Autonomy and National Priorities

India’s strategic autonomy rests on its unique position as a fast-growing economy with a large labour force and poverty. It aligns closely with the Global South on sustainable development. India must clarify its partnership models to avoid subordination to external agendas. Emphasis is on linking value chains and adjusting priorities while safeguarding national interests in technology, defence, and data sovereignty.

Technology, Defence, and Cybersecurity

The digital economy and technological innovation are key to India’s future power. Military strength increasingly depends on technological capabilities rather than traditional diplomacy. India prioritises indigenous innovation in AI, defence production, and data security. Cyber warfare is emerging as a central pillar of national security. Defence reforms suggest reducing the army size and focusing on advanced technologies like AI, drones, and missile systems.

Geopolitical Developments and Regional Influence

China’s retreat from some regional projects like the China-Pakistan Economic Corridor alters strategic dynamics. The U.S. strengthens ties with countries like Pakistan, Saudi Arabia, and Bangladesh, influencing South Asia’s balance. India’s access to Iran and Central Asia via the Chabahar Port is a strategic asset. These developments require India to recalibrate its defence and diplomatic strategies in a complex neighbourhood.

AI and India’s Global Ambitions

Artificial Intelligence is critical for India’s inclusive growth and global standing. Current AI initiatives need scaling to compete internationally. Indigenous research and sovereign AI capabilities are essential to avoid dominance by foreign companies. Increased funding and national collaboration are required to develop foundational AI models. AI sovereignty is linked to India’s vision of becoming a major global power by 2047.

Questions for UPSC:

1. Point out the strategic challenges India faces in balancing relations with the U.S., China, and Russia in the contemporary global order.
2. Critically analyse the impact of regional groupings like BRICS, SCO, and ASEAN on Asia’s economic integration and India’s foreign policy.
3. Estimate the role of indigenous technological innovation in shaping India’s defence and national security policies in the 21st century.
4. With suitable examples, underline how Artificial Intelligence can influence India’s economic growth and geopolitical influence by 2047.

Answer Hints:

1. Point out the strategic challenges India faces in balancing relations with the U.S., China, and Russia in the contemporary global order.

1. India seeks strategic autonomy, avoiding binary alignment with either the U.S. or China.
2. Improving ties with China amid border negotiations (Ladakh) while managing security concerns.
3. Maintaining a long-standing defence partnership with Russia, including critical arms supplies like the S-400 system.
4. U.S. pressures India to limit engagements with Russia and China, complicating diplomatic space.
5. Balancing economic interests – India’s trade with China and energy imports from Russia versus strategic ties with the U.S.
6. Geopolitical shifts in Asia require India to carefully navigate competing influences without compromising growth and security.

2. Critically analyse the impact of regional groupings like BRICS, SCO, and ASEAN on Asia’s economic integration and India’s foreign policy.

1. These groupings encourage economic and security cooperation based on shared interests, not colonial legacies.
2. BRICS and SCO emphasize geo-security and economic collaboration, enhancing Asia’s global influence.
3. ASEAN promotes political-trade integration, creating a large, interconnected regional market.
4. India leverages these platforms to balance China’s dominance and deepen regional partnerships.
5. Interlinked memberships facilitate coordinated policies and value chain integration across Asia.
6. Participation supports India’s pivot to Asia, offering alternatives to Western-led multilateral frameworks.

3. Estimate the role of indigenous technological innovation in shaping India’s defence and national security policies in the 21st century.

1. Indigenous innovation is critical for maintaining national data sovereignty and reducing dependency on foreign tech.
2. Focus on AI, drones, missile systems, and space technologies to modernize defence capabilities.
3. Cyber warfare identified as a central pillar of security, leveraging India’s comparative advantages.
4. Defence reforms propose reducing army size and prioritizing advanced technology over imported platforms.
5. Local defence production strengthens self-reliance and supports inclusive economic growth.
6. Technological capacity increasingly determines military strength and geopolitical influence.

4. With suitable examples, underline how Artificial Intelligence can influence India’s economic growth and geopolitical influence by 2047.

1. AI drives inclusive double-digit economic growth by enhancing productivity and innovation.
2. Indigenous AI research ensures sovereign capability, preventing foreign dominance (e.g., U.S. companies’ dominance risk).
3. Government initiatives like the ₹10,372-crore AI mission aim to build foundational AI models and talent pools.
4. AI integration in defence boosts strategic autonomy and modern warfare capabilities.
5. Scaling funding and national collaboration is essential to compete globally and shape AI governance.
6. AI sovereignty is key to India’s vision of becoming a major global power by its centenary in 2047.