Challenges of India’s Foreign Policy in the Global Domain

In this post, notes of “Unit 4: Challenges of India’s Foreign Policy in the Global Domain” from “DSC 18: India’s Foreign Policy: Challenges and Strategies” are given which is helpful for the students doing graduation this year.

Introduction

Understanding the Global Scene: Main Features and Trends

The global scene refers to how countries interact and depend on each other in areas like diplomacy, trade, security, and global rules. Key trends include:

  • Multiple Powers: The world is no longer US-dominated; China, the EU, and Russia also hold significant power.
  • Global Trade: Increased economic interconnection, but some nations are adopting protectionist policies.
  • International Conflicts: Tensions like US-China rivalry and the Russia-Ukraine war influence global decisions.
  • Climate Issues: Global cooperation is crucial for addressing environmental challenges.
  • Technology Changes: Advances in AI, cybersecurity, and space technology are reshaping global relations.
  • Influence of Non-State Groups: Terrorist organizations and large corporations play a role in global politics.

India’s Growing Role in Global Relations

India has transitioned from a neutral stance to an active global player through strategic partnerships. Key aspects of India’s role:

  • Economic Strength: As the 5th largest economy, India plays a crucial role in global trade.
  • Independence in Strategy: Maintains balanced relationships with the US, Russia, and China.
  • Regional Influence: A leader in South Asia, active in SAARC and BIMSTEC.
  • Participation in Global Governance: A key member of G20, BRICS, QUAD, and the UN.
  • Defense Partnerships: Strengthening military ties with the US, France, and Russia while addressing threats from China and Pakistan.
  • Cultural Diplomacy: Promotes Indian culture, democracy, technology, and yoga to build global connections.

Challenges and Opportunities for India

India’s foreign policy faces major challenges but also significant opportunities in the evolving global landscape.

🔴 Challenges:

  • China’s Rise: Border disputes, economic rivalry, and military tensions.
  • Pakistan Issues: Cross-border terrorism and strained diplomatic relations.
  • Global Uncertainty: Conflicts like the Russia-Ukraine war and US-China tensions impact India.
  • Trade Barriers: New trade restrictions and supply chain shifts affect exports.
  • Climate Goals: Balancing economic growth with environmental sustainability.
  • Tech and Cybersecurity Risks: Protecting data security and digital rights.

🟢 Opportunities:

  • Leadership in Global Decisions: India’s G20 presidency can shape international policies.
  • Building Partnerships: Strengthening ties with QUAD, BRICS, and other alliances.
  • Economic Growth: Becoming a manufacturing hub and attracting global investments.
  • Digital and Space Leadership: Leveraging ISRO and technology advancements.
  • Energy Collaboration: Expanding renewable energy initiatives.

India’s foreign policy must overcome challenges and capitalize on opportunities to strengthen its global influence. 🚀🌍

Negotiating Styles and Strategies

India follows a smart and balanced approach in global negotiations, focusing on practicality, global cooperation, and independence in trade, security, and climate change.


A. Trade

India’s Trade Strategy: Bilateral & Multilateral Agreements

India uses a two-part strategy:

  1. Bilateral Agreements: Free Trade Agreements (FTAs) with individual countries (UAE, Australia, UK) for better trade deals.
  2. Multilateral Engagements: Participation in WTO to protect national trade interests.

India’s trade priorities:

  • Self-sufficiency (Atmanirbhar Bharat) while staying linked to global markets.
  • Protecting local businesses from foreign competition.
  • Expanding market access for Indian exports.

WTO & RCEP Decision

  • WTO Involvement: India actively debates subsidies, agriculture, and intellectual property rights to counter unfair global trade rules.
  • RCEP Exit (2019): India refused to join RCEP due to concerns over:
    • Cheap Chinese imports hurting local industries.
    • Rising trade deficit with RCEP nations.
    • Lack of protection for Indian farmers & small businesses.

Instead, India is exploring FTAs with EU, UK, Canada and boosting trade in the Indo-Pacific region.

Challenges in Trade

  • Balancing local protection & global trade access.
  • Non-tariff barriers from other countries limit exports.
  • Pressure to open markets while protecting local industries.
  • Trade tensions with China & the US create uncertainty.

B. Security

India’s Security Concerns: Regional & Global

India’s security strategy focuses on regional peace & global counterterrorism:

  • China’s Military Activities: Border issues in Ladakh & Arunachal Pradesh, growing naval presence in the Indian Ocean.
  • Terrorism from Pakistan: Cross-border attacks remain a key threat.
  • Maritime Security: Protecting trade routes from piracy & external threats.
  • Cybersecurity: Cyber threats from China, Pakistan, and others.
  • Global Conflicts: The Russia-Ukraine war and US-China tensions impact India’s security planning.

Fighting Terrorism: India’s Cooperation Strategy

India collaborates through:

  • Bilateral Intelligence Sharing: With US, France, Israel, Gulf nations.
  • Multilateral Platforms:
    • UN Security Council (UNSC): Advocating for stronger anti-terrorism measures.
    • Financial Action Task Force (FATF): Pressuring Pakistan to cut terror financing.
    • QUAD & SCO: Addressing terrorism in Asia.

Defense Partnerships

India is strengthening military ties:

  • US: Signed key agreements (BECA, COMCASA, LEMOA) for defense cooperation.
  • France: Buying Rafale jets, enhancing naval ties.
  • Russia: Acquiring S-400 missile systems despite US sanctions.
  • Israel: Advanced weapons & intelligence collaboration.

“Make in India” aims to reduce dependence on foreign defense imports.


C. Climate Change

India’s Position on Global Climate Agreements

India is committed to climate action while ensuring economic development:

  • Paris Agreement (2015): Pledged to reduce carbon emissions & increase renewable energy.
  • Common But Differentiated Responsibilities (CBDR): India insists wealthier nations must take greater responsibility for climate action.
  • Glasgow COP26 (2021): Set a target for net-zero emissions by 2070 while ensuring energy security.

National & Global Clean Energy Initiatives

India leads in renewable energy projects:

  • International Solar Alliance (ISA): A global effort led by India & France to promote solar energy.
  • National Hydrogen Mission: Developing green hydrogen as an alternative energy source.
  • Renewable Energy Expansion: Aiming for 500 GW of renewable energy by 2030.

Challenges in Climate Policy

  • High Dependence on Coal: Transitioning to renewables remains difficult.
  • Funding Gaps: Climate adaptation requires significant investment.
  • Global Pressure: Developed nations push India for faster emission cuts despite their own pollution history.
  • Energy Security: Ensuring stable power supply while adopting green energy.

Conclusion

India’s foreign policy in trade, security, and climate change is guided by practicality, independence, and global cooperation. While challenges exist, India remains an active player in shaping global policies while safeguarding national interests. 🌏💡🚀

India’s Involvement in Multilateral Groups


A. BRICS

What is BRICS? Goals of BRICS

BRICS (Brazil, Russia, India, China, South Africa) is a major group of developing nations that aims to:

  • Encourage economic cooperation among members.
  • Change global financial rules to reduce Western dominance.
  • Boost trade, investment, and development opportunities.
  • Enhance political and security collaboration to address global challenges.

🔹 Founded in 2006 (as BRIC); South Africa joined in 2010.
🔹 Acts as a counter to Western-led organizations like the IMF and World Bank.


India’s Interests in BRICS: Trade, Development, and Security

India sees BRICS as a key platform for advancing its economic, strategic, and governance goals:

  1. Economic Growth and Trade
    • BRICS nations account for ~25% of the global economy and 40% of the world’s population.
    • India benefits from increased trade & investment with BRICS partners.
    • Platforms like the BRICS Business Council promote stronger economic ties.
  2. Development Funding
    • Access to low-cost infrastructure financing via BRICS-led banks.
    • Supports the New Development Bank (NDB) to fund projects in emerging economies.
  3. Global Governance Reforms
    • India pushes for UN Security Council reforms for better representation of developing nations.
    • Challenges Western influence in IMF & World Bank.
  4. Security and Counterterrorism
    • Uses BRICS to strengthen anti-terror measures & cybersecurity.
    • Advocates for global cooperation on terrorism prevention.

Key Projects: New Development Bank (NDB) & Contingent Reserve Arrangement (CRA)

  1. New Development Bank (NDB)
    • Founded in 2015, based in Shanghai.
    • Provides infrastructure & development loans to BRICS and other developing nations.
    • India has secured funding for renewable energy, transport, and urban development.
  2. Contingent Reserve Arrangement (CRA)
    • A financial safety net for BRICS members during economic crises.
    • Reduces reliance on Western-controlled financial systems.

India’s Influence in BRICS

India plays a leadership role by:

  • Advocating for sustainable development & technological advancements.
  • Expanding BRICS initiatives in finance, health, and space exploration.
  • Strengthening cultural & educational exchanges among member states.
  • Ensuring BRICS remains relevant as global power shifts.

B. Challenges in Multilateral Engagement

1. Diverging National Interests

  • Different economic priorities: China dominates manufacturing, India excels in services, Brazil focuses on agriculture.
  • Varied political systems: India & Brazil are democracies, while China & Russia follow authoritarian models.
  • Conflicting foreign policies: Russia & China often adopt anti-West stances, while India & Brazil take a more balanced approach.

2. India-China Rivalry within BRICS

  • Border disputes (e.g., Ladakh, Arunachal Pradesh) create tensions.
  • China’s economic dominance raises concerns over unequal influence in BRICS.
  • Russia-China alliance sometimes sidelines India’s interests.
  • Despite tensions, India uses BRICS for diplomatic engagement with China while securing economic benefits.

3. BRICS’ Role in a Changing Global Order

  • The rise of other alliances (QUAD, I2U2) raises questions about BRICS’ influence.
  • Expanding BRICS membership (e.g., Iran, Argentina, Saudi Arabia) may strengthen or complicate decision-making.
  • India prefers BRICS to stay development-focused rather than becoming an anti-Western bloc.

Conclusion

BRICS remains a crucial part of India’s foreign policy, offering economic and diplomatic benefits. However, internal challenges, especially India-China tensions, pose risks. Moving forward, India must balance cooperation with strategic caution to maximize BRICS benefits while diversifying global partnerships. 🌍💡🚀

Main Challenges for India in the World

As India rises as a global power, it faces major challenges in economic growth, strategic independence, and global influence.


A. Economic Growth and Independence

India wants to expand its economy while keeping its foreign policy independent, but this creates challenges:

1. Trade vs. Protectionism

  • India aims to increase global trade but also wants to protect local industries.
  • Leaving RCEP reflected India’s concerns over cheap imports harming domestic businesses.
  • Balancing act: Global trade participation vs. Self-reliance (Atmanirbhar Bharat).

2. Dependence on Foreign Investments and Technology

  • India relies on foreign investments from the US, EU, and Japan, while limiting China’s role in key sectors.
  • Programs like Make in India and PLI (Production Linked Incentives) aim to reduce import dependence.
  • The challenge: Attracting investments while maintaining control over key sectors (e.g., 5G, semiconductors).

3. Energy Security and Climate Goals

  • India must meet rising energy demands while shifting to renewable energy.
  • Coal dependency vs. Climate commitments (e.g., Paris Agreement).
  • Global crises (e.g., Russia-Ukraine war) disrupt oil & gas imports, affecting energy security.

B. Handling Rivalries and Alliances in a Changing World

India navigates global rivalries while avoiding being drawn into power struggles.

1. US vs. China: India’s Balancing Act

  • India partners with the US for defense & technology but avoids becoming openly anti-China.
  • China is India’s top trade partner, but border conflicts (Galwan clash) strain relations.
  • India is part of BRICS & SCO (with China) while also engaging with QUAD & Indo-Pacific allies.

2. Russia-Ukraine War: Maintaining Diplomatic Neutrality

  • India maintains strong ties with Russia (for defense & energy) while engaging with Western nations.
  • Western pressure to reduce Russian ties, but India follows a strategic autonomy approach.
  • Solution: India promotes diplomacy & dialogue while securing its own interests.

3. Managing Relations in South Asia (Pakistan & Beyond)

  • Pakistan-backed terrorism remains a serious security threat.
  • India seeks regional leadership via SAARC & BIMSTEC, but China-Pakistan ties complicate this.
  • The Afghanistan crisis impacts India’s security & stability in South Asia.

C. Enhancing India’s Global Image and Soft Power

India must strengthen its global reputation while countering negative narratives.

1. Positioning India as a Global Leader

  • G20 Summit hosting showcased India’s diplomatic capabilities.
  • Pushing for UN Security Council reform to gain a permanent seat.
  • Challenge: Some still see India as a regional power, not a global leader.

2. Expanding India’s Soft Power Influence

India promotes culture, technology, and democracy to enhance global influence:

  • Yoga & Ayurveda diplomacy (e.g., International Yoga Day).
  • Bollywood & Indian cuisine as cultural soft power tools.
  • Digital India exports: UPI & Aadhaar models shared with developing nations.

3. Countering Misinformation and Negative Narratives

  • Western media often criticizes India on human rights & policy issues.
  • India must increase global media engagement & digital diplomacy.
  • Key strategy: Using UN, G20, QUAD, & BRICS to showcase India’s democratic & global stability commitments.

Conclusion

India’s global strategy requires careful balancing between economic priorities, geopolitical alliances, and soft power diplomacy. How India manages these challenges will determine its rise as a major global power in the 21st century. 🌍🇮🇳✨

Future Strategies

To strengthen its role as a global power, India must adopt a forward-thinking foreign policy that enhances diplomatic, economic, and strategic partnerships.


A. Building Global and Regional Partnerships

India must actively develop partnerships to safeguard its interests.

1. Improving Global Engagement

  • UN Reforms: Push for a permanent seat in the UN Security Council with support from BRICS and G4 (India, Germany, Japan, Brazil).
  • WTO & G20 Leadership: Advocate for fair trade policies and represent developing nations’ interests.
  • Climate Leadership: Expand the International Solar Alliance (ISA) and promote sustainable development.

2. Strengthening Regional Cooperation

  • Indo-Pacific Strategy: Enhance QUAD (India, US, Japan, Australia) to counterbalance China’s influence.
  • South Asia Focus: Revitalize SAARC, expand BIMSTEC, and boost trade with Bangladesh, Sri Lanka, Nepal, and ASEAN.
  • Indian Ocean Diplomacy: Improve naval security ties with France, ASEAN, and African nations.

3. Strengthening Other Alliances

  • Engage in BRICS & SCO while managing China’s dominance.
  • Expand ties with Africa & Latin America for trade, energy, and tech partnerships.
  • Deepen cooperation with Gulf nations for energy security and investment.

B. Improving India’s Negotiation Skills

India must enhance its diplomatic and negotiation tactics for better international deals.

1. Trade Agreements

  • Complete FTAs with the EU, UK, and Canada to increase trade access.
  • Reduce reliance on China by diversifying supply chains and local manufacturing.
  • Push WTO reforms to ensure fair trade policies for developing countries.

2. Defense & Security Talks

  • Expand defense agreements with the US, France, Russia, and Israel.
  • Boost local defense production (Make in India) while acquiring advanced military tech.
  • Strengthen counterterrorism efforts via UN and QUAD cooperation.

3. Digital & Cyber Diplomacy

  • Promote India’s digital innovations (UPI, Aadhaar) globally.
  • Enhance cybersecurity alliances to tackle cyber threats.
  • Lead global discussions on AI, data privacy, and digital governance.

C. India’s Role in Global Governance

India must establish itself as a responsible global leader in key sectors.

1. Leadership in Sustainable Development

  • Position India as a global hub for green technology, renewable energy, and climate action.
  • Strengthen South-South cooperation to assist developing nations.

2. Supporting Global Economic Growth

  • Advocate for financial system reforms in the IMF & New Development Bank (NDB).
  • Aid developing countries in technology, healthcare, and education.

3. Promoting India’s Soft Power

  • Expand cultural diplomacy through yoga, Bollywood, and tourism.
  • Highlight India’s democratic values as an alternative to authoritarian regimes.
  • Boost global aid efforts via Vaccine Maitri & disaster relief initiatives.

Conclusion

A. India’s Changing Role in the World

India’s foreign policy has evolved from non-alignment to strategic autonomy, balancing global powers while strengthening its influence.

  • From regional player to global leader: India is shaping global policies in trade, climate, and security.
  • Using economic growth for diplomatic leverage: As the 5th largest economy, India is using its market power in global talks.
  • Balancing global relationships: Navigating ties with the US, Russia, China, and the Global South.

B. Turning Challenges into Opportunities

India’s foreign policy presents opportunities despite challenges:

  • China’s expansion → Strengthen Indo-Pacific alliances.
  • Trade barriers → Promote domestic manufacturing & FTAs.
  • Global energy crisis → Lead in renewable energy & green tech.
  • Soft power potential → Expand cultural & digital diplomacy.

India’s future success depends on adapting to global shifts, building strong alliances, and leading in emerging global issues. By focusing on economic strength, strategic independence, and multilateral leadership, India can shape the 21st-century world order. 🌍🇮🇳✨

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