India is using its growing economic scale to pursue a policy of polyalignment, engaging with competing global powers to protect national interests while avoiding formal military alliances. Despite rising tensions and trade disparities with the United States and China, New Delhi continues to prioritize strategic autonomy and domestic industrial growth. As the global order undergoes a fundamental reconfiguration, India is managing a period of profound uncertainty, transitioning from a passive observer to an active shaper of international rules and partnerships.
Strategic Autonomy in a Volatile World Order
This approach, often described as polyalignment or multi-alignment, faces pressure from an evolving global order where traditional power balances are shifting. As the world moves away from the post-World War II US-led framework, New Delhi seeks to avoid being boxed into rigid blocs. The challenges are compounded by a complex neighborhood; for instance, the political transition in Bangladesh following the 2024 uprising culminated in the February 2026 general election, bringing the Bangladesh Nationalist Party led by Tarique Rahman to power. Similarly, Nepal saw a major transformation with Balendra Shah assuming the premiership after the March 2026 elections.
India is too large a country to be boxed into any alliance or regional or subregional arrangements, whether trade, economic or political.
Shashi Tharoor, Member of Parliament
India Pursues Strategic Autonomy to Meet Economic Requirements
The pursuit of strategic autonomy is deeply influenced by India’s economic requirements. As the world’s fastest-growing major economy with a goal of reaching developed status within two decades, India is resource-hungry. While bilateral goods-and-services trade with the United States reached a record $239.6 billion in 2025, the relationship remains complex. The Indian Council of World Affairs reports that the share of Russian oil in India’s total imports rose from 21.6 percent in FY2022-2023 to 35.8 percent in FY2024-2025. India’s crude oil import dependence reached approximately 88.7 percent in the financial year 2025-26, according to the Petroleum Planning and Analysis Centre.
| Trade Partner | Key Dynamics |
|---|---|
| United States | Trade reached $239.6 billion in 2025; relations strained by tariffs and immigration restrictions. |
| China | High reliance on components for IT firms; border disputes remain a direct security concern. |
| European Union | Strategic partnership with over €117 billion in accumulated investments in India as of 2024. |
| Russia | Energy and military ties; Russian oil share in imports grew to 35.8 percent by FY2024-2025. |
The Influence of Corporate Actors on Foreign Policy
India’s diplomatic positioning is not solely the result of state-level strategy; it is also shaped by powerful domestic corporate interests. This dynamic suggests that India’s polyalignment is a reflection of competing economic forces rather than a singular, rational state strategy.
Diplomatic Challenges at the SCO and BRICS Summits
Recent diplomatic gatherings have tested India’s ability to balance competing global expectations. The Shanghai Cooperation Organisation (SCO) summit in Bishkek, Kyrgyzstan (August 31–September 1, 2026), and the BRICS summit in New Delhi (September 12–13, 2026) were remarkable events. At these summits, India endorsed declarations supporting Iran, while Prime Minister Narendra Modi appealed to Russian President Vladimir Putin to end the war in Ukraine. Analysts suggest this appeal could be read as a counter-signal to Washington. Meanwhile, India’s military is undergoing its own internal evolution; India remains caught in inter-service disagreements regarding the establishment of theatre commands to achieve jointness and integrated planning.
India will absorb American capital, technology and goodwill, grow stronger, and still decline to stand with Washington on key issues like Russia and Iran. That is a fair description of how India will behave.
Amitabh Mattoo, professor at Jawaharlal Nehru University, via Newsweek
As India looks toward 2070, with NITI Aayog projecting that 86% of India’s building stock is yet to be constructed, the nation faces a choice in its industrial path. While India has vast potential, the ultimate success of India’s current path depends on its ability to transform diplomatic flexibility into genuine domestic industrial capability, ensuring that its rise as a global power remains on its own terms.