A year of dissipating promises for Indian foreign policy

The Hindu: - Published on 26 December 2025

Why in News?

The year 2025 began with high expectations for India’s foreign policy. After the 2024 elections, PM Narendra Modi aimed to return to active diplomacy—resetting US relations under Trump 2.0, resolving LAC tensions with China, and securing $52 billion in oil imports from Russia. However, by year-end, many promises dimmed amid economic, energy, regional, and global security challenges.

Economic and Energy Challenges

• Tariff Impact: 25% reciprocal tariffs affected apparel, jewelry, and seafood; GSP was withdrawn, and $52B of Russian oil imports were impacted.
• FTA Limitations: Agreements were signed with the UK, Oman, and New Zealand, but the US-EU BTA remained stalled. H-1B visa restrictions threatened remittances.
• China-Russia Tensions: Despite Modi-Xi-Putin photo-ops, the LAC remained unsettled, and new sanctions were imposed on Russian oil.

The 25% tariffs led to factory closures and job losses, Russian oil sanctions caused a $52B import crisis, and H-1B visa cuts resulted in a decline in remittances.

Strategic & Defence Dimensions

LAC tensions with China persisted despite high-profile photo-ops with Xi Jinping. Russia’s new sanctions on oil and defence technology underscored vulnerability in traditional alliances. Regional security threats included the Pahalgam attack, Bangladesh and Nepal political instability, Taliban negotiations, Myanmar elections, and the Saudi-Pakistan defence pact. India’s strategic posture highlighted the importance of border management, military readiness, and emerging threats from cyber and space domains.

Global & Multilateral Engagement

India navigated a complex global landscape in 2025. Trump-Xi meetings weakened the Asia-Pacific power balance, and global responses to conflicts like Gaza and Ukraine favored aggressor nations. China’s push for alternative global governance frameworks challenged India’s multilateral influence. While QUAD gained traction, India’s engagement with Europe and other middle powers remained limited. This demonstrated the importance of a more diversified diplomatic footprint and proactive participation in global governance, climate negotiations, and technological standards.

Technology, Trade, and Innovation Diplomacy

The slowdown in global trade exposed India’s export vulnerabilities. Tariff pressures accelerated discussions on supply chain diversification (China+1 strategy), regional manufacturing hubs, and domestic competitiveness. Simultaneously, India strengthened partnerships in technology, digital governance, and AI ethics, balancing soft power with economic and technological diplomacy.

Soft Power & Cultural Diplomacy

India continued leveraging cultural diplomacy, leveraging initiatives like G20, yoga diplomacy, and media engagement. Regional cultural outreach in South Asia, combined with humanitarian assistance in the Indo-Pacific, showcased India’s “Vishwamitra” aspiration, even as geopolitical tensions constrained effectiveness.

Lessons for 2026

India must recognize that performative diplomacy—photo-ops and ceremonial gestures—cannot substitute for strategic engagement. Key lessons include:

• Prioritize value-based diplomacy: Uphold consistent principles, balancing internal and external messaging.
• Strengthen regional partnerships: Engage South Asia and the Indo-Pacific pragmatically to counter emerging threats.
• Diversify economic and energy diplomacy: Reduce dependence on single partners and enhance domestic resilience.
• Invest in strategic autonomy: Enhance military, cyber, space, and technology capabilities for long-term security.
• Multilateral engagement: Actively participate in shaping global governance, climate policies, and digital norms.

Cautious, value-driven, and multidimensional diplomacy, prioritizing both regional stability and global partnerships, is essential to prevent a repeat of 2025’s disappointments and strengthen India’s position in 2026.