India's Foreign Policy Evolution: Navigating Great Power Competition in 2024

India's Foreign Policy Evolution: Navigating Great Power Competition in 2024

An in-depth analysis of India's strategic positioning amid shifting global dynamics, examining key bilateral relationships and multilateral engagements.

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Akash Banerjee

14 min read
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India’s Foreign Policy Evolution in 2024

India’s foreign policy has undergone a remarkable transformation, evolving from non-alignment to strategic autonomy while navigating an increasingly complex geopolitical landscape. This analysis examines the key shifts and their implications.

The Strategic Context

Global Power Dynamics

The international order is experiencing significant flux:

  • US-China Rivalry: The defining geopolitical competition of our era
  • Russia-West Tensions: Impact of Ukraine conflict on global alignments
  • Rise of Global South: Increasing assertiveness of developing nations
  • Technology Decoupling: Supply chain restructuring and tech wars

India’s Positioning

India has crafted a nuanced approach to these dynamics:

Relationship2020 Position2024 PositionKey Shift
USAStrategic PartnerComprehensive Strategic PartnershipDeepened defense ties
ChinaBorder TensionsManaged CompetitionEconomic decoupling
RussiaTraditional AllyStrategic AutonomyDiversified sourcing
EUEconomic PartnerStrategic PartnershipTrade agreement talks
JapanDevelopment PartnerSpecial Strategic PartnershipInfrastructure focus

Key Bilateral Relationships

United States: The Defining Partnership

The India-US relationship has transformed dramatically:

Defense Cooperation

The defense partnership has deepened significantly:

  1. Foundational Agreements

    • LEMOA (2016): Logistics support
    • COMCASA (2018): Secure communications
    • BECA (2020): Geospatial intelligence
    • New Initiative: Co-production agreements
  2. Defense Trade

    • Total defense trade: $25 billion (2008-2024)
    • Major platforms: C-130J, C-17, Apache, Chinook, P-8I
    • New acquisitions: MQ-9B drones, F-414 engines
  3. Joint Exercises

    • Yudh Abhyas: Army exercise
    • Malabar: Naval exercise (with Japan, Australia)
    • Cope India: Air force exercise
    • Tiger Triumph: Tri-service exercise

“The India-US partnership is one of the most consequential relationships of the 21st century. It is rooted in shared democratic values and converging strategic interests.” — Secretary of State Antony Blinken

Technology Partnership

The Initiative on Critical and Emerging Technology (iCET):

  • Semiconductors: $3 billion investment by Micron
  • Space: Joint mission to International Space Station
  • AI/Quantum: Research partnerships
  • Telecom: Open RAN collaboration

China: Managing Competition

The relationship with China remains complex:

Border Situation

The Line of Actual Control (LAC) situation:

SectorStatusKey Friction Points
Eastern LadakhDisengaged partiallyDepsang, Demchok pending
Central SectorStableNo major incidents
Eastern SectorTenseArunachal Pradesh claims

Force Deployment:

  • Indian troops: 60,000+ additional
  • Chinese troops: 50,000+ opposite
  • Infrastructure: All-weather roads, tunnels

Economic Decoupling

India has taken significant steps:

India-China Trade (2024):
- Total Trade: $118 billion
- India's Deficit: $85 billion
- Import Restrictions: 300+ Chinese apps banned
- FDI Screening: Strict scrutiny of Chinese investment
- PLI Schemes: Reducing import dependence

Russia: Balancing Act

The relationship with Russia requires careful management:

Defense Dependency

  • Legacy Systems: 60% of equipment Russian-origin
  • S-400 Delivery: 3 of 5 regiments received
  • Spare Parts: Supply chain challenges
  • Joint Ventures: BrahMos success story

Energy Cooperation

  • Oil Imports: 35% of crude from Russia (up from 2%)
  • Discounted Rates: $30-40 per barrel savings
  • Payment Mechanism: Rupee-Ruble arrangement
  • Investment: ONGC Videsh in Russian assets

Neighborhood First Policy

India’s immediate neighborhood remains a priority:

Bangladesh

  • Trade: $18 billion (largest SAARC partner)
  • Connectivity: 5 rail links, 2 bus services
  • Power Export: 1,160 MW to Bangladesh
  • Development: $10 billion Line of Credit

Sri Lanka

  • Crisis Support: $4 billion assistance during crisis
  • Infrastructure: Kankesanthurai Port, airport projects
  • Energy: Power grid interconnection
  • Trade: FTA under negotiation

Nepal

  • Connectivity: Cross-border rail, roads
  • Energy: Hydropower projects, grid connection
  • Development: $1 billion development assistance
  • Open Border: Unique people-to-people ties

Multilateral Engagements

G20 Presidency

India’s G20 presidency (2023) was transformative:

Key Achievements:

  1. African Union Membership: Permanent G20 seat
  2. Global Biofuel Alliance: 30+ countries
  3. India-Middle East-Europe Corridor: Alternative to BRI
  4. Green Development Pact: Climate financing
  5. Reform of Multilateral Development Banks: Capital increase

Quad Partnership

The Quadrilateral Security Dialogue has gained momentum:

PillarInitiativesProgress
HealthVaccine partnership1 billion doses commitment
ClimateClean hydrogenJoint research
TechSemiconductor supply chainRisk assessment
MaritimeDomain awarenessReal-time sharing
SpaceEarth observationData sharing

BRICS and SCO

India’s role in these groupings:

BRICS Expansion:

  • New members: Egypt, Ethiopia, Iran, Saudi Arabia, UAE
  • India’s role: Balanced approach
  • New Development Bank: $30 billion capital

SCO Membership:

  • Joined: 2017
  • Role: Counter-terrorism focus
  • RATS: Regional Anti-Terrorist Structure

Strategic Autonomy in Action

Multiple Alignments

India has pursued a strategy of multiple alignments:

  1. Quad: Security partnership with US, Japan, Australia
  2. BRICS: Engagement with China, Russia, Global South
  3. I2U2: Partnership with US, Israel, UAE
  4. India-Middle East Corridor: Economic connectivity

Defense Diversification

Reducing dependency on any single source:

Source2014 Share2024 ShareKey Suppliers
Russia70%45%Declining
USA10%18%Growing
France5%15%Rafale, Scorpene
Israel8%12%Missiles, drones
Others7%10%Diversifying

Economic Diplomacy

Trade Agreements

India has accelerated trade negotiations:

Completed:

  • UAE CEPA: $100 billion trade target
  • Australia ECTA: $50 billion target
  • Mauritius CECPA: Preferential access

Under Negotiation:

  • UK FTA: 14 rounds completed
  • EU FTA: 8 rounds completed
  • Canada CEPA: 10 rounds completed
  • GCC FTA: Early harvest signed

Development Partnership

India’s development assistance program:

Development Partnership Portfolio:
- Total Lines of Credit: $30 billion
- Countries Covered: 65+
- Major Projects: Infrastructure, energy, agriculture
- Capacity Building: 15,000 scholarships annually
- ITEC Program: 12,000 training slots

Challenges Ahead

Strategic Dilemmas

India faces several strategic challenges:

  1. China’s Rise

    • Economic power: $18 trillion GDP
    • Military modernization: 7% growth
    • BRI expansion: 150+ countries
    • Technology leadership: AI, 5G, quantum
  2. US-China Rivalry

    • Pressure to choose sides
    • Technology restrictions
    • Supply chain disruptions
    • Sanctions risks
  3. Regional Instability

    • Pakistan: Political uncertainty
    • Afghanistan: Taliban regime
    • Myanmar: Civil conflict
    • Maldives: Political shifts

Policy Recommendations

Short-term (2024-2025):

  • Complete border infrastructure
  • Accelerate defense modernization
  • Deepen Quad cooperation
  • Expand economic partnerships

Medium-term (2025-2030):

  • Achieve $5 trillion economy
  • Develop indigenous defense industry
  • Establish technology leadership
  • Strengthen regional institutions

Long-term (2030-2047):

  • Become third-largest economy
  • Achieve strategic autonomy
  • Lead Global South
  • Shape international order

Conclusion

India’s foreign policy in 2024 reflects a confident nation navigating complex global dynamics with strategic autonomy. The shift from non-alignment to multiple alignments has positioned India as a key player in the emerging international order.

The challenges are significant—China’s rise, US-China rivalry, regional instability—but India’s diplomatic skill, economic growth, and strategic partnerships provide a strong foundation for advancing national interests.

As India approaches its centenary of independence in 2047, its foreign policy will play a crucial role in realizing the vision of a developed, prosperous, and influential nation on the global stage.


This analysis is part of our Politics series. For more insights on international relations and strategic affairs, explore our Politics section.

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