In this post, notes of “Unit 2: India and the Changing Global Power Equations” from “DSC 18: India’s Foreign Policy: Challenges and Strategies” are given which is helpful for the students doing graduation this year.

1. Introduction

Understanding Global Power Changes: Past and Present

Global power has been shaped by money, military strength, and diplomacy. During the Cold War (1945–1991), the world was split mainly between the U.S. and the USSR.

After the Cold War, the U.S. was the main power. But in the 21st century, other countries like China and India are gaining importance.

Today’s global power is affected by economic interdependence, new technology, and changing political alliances, including groups like BRICS, QUAD, and AUKUS.

India’s Role in Global Power Since Independence

After gaining independence in 1947, India has faced many global challenges. At first, India followed a Non-Aligned Policy to stay independent during the Cold War.

After economic reforms in 1991, India began to connect more with the U.S., Russia, and ASEAN countries.

Now, India is seen as a rising global power because of its economic growth, military updates, space projects, and diplomatic efforts. It takes part in international groups like the UN, G20, and BRICS while managing relationships with major world powers.

Changing Trends in India’s Relations with Other Countries

India’s relationships with other countries have changed based on economic, security, and political needs. Some main trends are:

• Closer Ties with the U.S.: Working together in defense, technology, and trade.
• Managing Relations with China: Economically connected but facing border issues (e.g., Doklam 2017, Galwan 2020).
• Russia-India Relations: Continuing defense cooperation while also connecting with Western countries.
• Neighborhood First Policy: Strengthening ties with South Asian countries through SAARC and BIMSTEC.
• Act East Policy: Building relationships with ASEAN and the Indo-Pacific area.
• Middle East Engagement: Focusing on energy security and economic partnerships with Gulf countries.

2. India and the USA

Background

Early Years: Neutrality and Cold War Issues

• After gaining independence in 1947, India chose non-alignment during the Cold War.
• The U.S. was unsure about India’s socialist policies and its friendship with the Soviet Union (e.g., 1971 Indo-Soviet Treaty).
• Relations became tense after India’s nuclear tests (1974 & 1998), leading to U.S. penalties.
• During the Cold War, the U.S. supported Pakistan more than India, especially with military and financial aid.

Post-Cold War Changes: From Distance to Closer Ties

• After economic reforms in 1991, India began working more closely with the U.S.
• The 2005 U.S.-India Civil Nuclear Deal was a major step, allowing India to join the global nuclear community.
• Over time, defense, trade, and technology partnerships grew stronger.

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Main Areas of Cooperation

Defense Partnerships (e.g., Quad, LEMOA)

• India and the U.S. have signed key defense agreements:
  • LEMOA – Allows both countries to use each other’s military bases.
  • COMCASA – Helps secure communication between their armed forces.
  • BECA – Enables sharing of critical geographic data.
• The Quad Alliance (India, USA, Japan, Australia) works to maintain a free and open Indo-Pacific, countering China’s influence.
• Joint military drills like Malabar and Yudh Abhyas strengthen defense cooperation.

Economic and Trade Relations

• India-U.S. trade reached over $190 billion in 2023.
• The U.S. is a major investor in Indian sectors like IT, healthcare, and defense.
• India wants better access to the U.S. market through GSP (Generalized System of Preferences), while the U.S. wants lower tariffs on medical devices and motorcycles.

Science, Technology, and Innovation Collaborations (e.g., Space and AI)

• ISRO and NASA are working on the NISAR mission.
• Collaborations in AI, cybersecurity, and semiconductors are increasing.
• During COVID-19, health partnerships focused on vaccine development and supply chain support.

People-to-People Connections and Indian Community in the USA

• The Indian community in the U.S. (over 4.5 million people) strengthens bilateral ties.
• Indian students form one of the largest international student groups in U.S. universities.
• Notable figures of Indian origin, like Kamala Harris (U.S. Vice President) and Sundar Pichai (Google CEO), highlight India’s impact.

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Challenges in Relations

Trade Issues and Protectionism

• The U.S. is concerned about India’s high tariffs on American goods (e.g., Harley-Davidson motorcycles, medical devices).
• India wants GSP trade benefits reinstated, which the U.S. ended in 2019.
• The U.S. seeks better access for its agricultural and dairy products in India.

Differences in Global Strategies (e.g., Climate Change, Iran)

• India’s ties with Iran and Russia sometimes conflict with U.S. sanctions.
• On climate change, the U.S. wants stricter carbon targets, while India prioritizes development needs.

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Current and Future Outlook

Indo-Pacific Goals and Countering China

• The U.S. supports India’s role in the Indo-Pacific to balance China’s influence.
• Joint efforts through Quad, AUKUS (Australia-UK-U.S.), and I2U2 (India-Israel-UAE-USA) strengthen security and economic ties.

Building a Strong Global Partnership

• The India-U.S. Initiative on Critical and Emerging Technology (iCET) promotes cooperation in semiconductors and AI.
• The U.S. views India as key to diversifying global supply chains and reducing reliance on China.
• Future priorities include defense technology, energy security, and skilled labor movement.

3. India and Russia

Historical Background

Support from the Soviet Union

• India and the Soviet Union (USSR) became close during the Cold War, with the USSR providing political, military, and economic support.
• The Indo-Soviet Treaty of Peace, Friendship, and Cooperation (1971) was crucial during the Bangladesh Liberation War, ensuring Soviet support against the U.S.-Pakistan-China alliance.
• The USSR was India’s main military supplier and helped in India’s nuclear program and industrial growth (e.g., steel and energy projects).

Change in Relations After the USSR Ended

• After the USSR collapsed in 1991, India faced challenges maintaining strong ties with Russia due to Russia’s economic problems.
• In 2000, President Vladimir Putin and Prime Minister Atal Bihari Vajpayee signed the India-Russia Strategic Partnership Agreement, strengthening relations.
• Despite India building global partnerships (e.g., with the U.S.), Russia remained a key ally in defense and strategy.

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Main Areas of Cooperation

Defense and Strategic Partnerships

• Russia is India’s largest defense supplier (over 45% of military imports).
• Major defense collaborations include:
  • BrahMos Missile – A joint India-Russia project for supersonic cruise missiles.
  • S-400 Missile Defense System – India purchased this despite U.S. sanctions threats.
  • AK-203 Rifles & Sukhoi-30 Fighters – Agreements for joint production.
• Joint military exercises:
  • INDRA – A tri-service military exercise between India and Russia.
  • Vostok & Zapad – India participates in Russian-led exercises.

Energy Security: Nuclear and Oil

• Russia is vital for India’s nuclear energy sector:
  • The Kudankulam Nuclear Power Plant in Tamil Nadu was built with Russian support.
• India imports Russian oil and gas, especially after Western sanctions on Russia due to the Ukraine war.
• Russia’s Arctic oil and gas reserves could help India’s future energy security.

Cultural and Historical Connections

• Bollywood has been popular in Russia since Soviet times.
• Russian authors like Tolstoy and Dostoevsky have a strong following in India.
• A growing number of Indian students study in Russia, particularly in medicine.

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Challenges in Relations

Russia’s Closer Ties with China

• Russia’s growing strategic partnership with China worries India due to India-China border tensions.
• Russia maintains neutrality and does not openly support India in conflicts with China.

Balancing India-Russia and India-U.S. Relations

• India’s expanding defense ties with the U.S. (e.g., QUAD) creates friction with Russia.
• The Ukraine war forced India to take a neutral stance, balancing relations between Russia and the West.

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Current and Future Opportunities

Multilateral Cooperation (e.g., BRICS, SCO)

• India and Russia collaborate in BRICS, SCO (Shanghai Cooperation Organization), and the Eurasian Economic Union (EAEU).
• Russia supports India’s bid for a permanent seat in the UN Security Council (UNSC).

Economic and Technological Partnerships

• Trade and Local Currency Transactions: India and Russia are exploring trading in their own currencies to avoid Western sanctions.
• Connectivity Projects:
  • International North-South Transport Corridor (INSTC) – Enhances trade through Iran.
  • Chennai-Vladivostok Maritime Corridor – Strengthens Indo-Pacific cooperation.
• Expanding work in AI, space missions (e.g., Gaganyaan), and joint defense technology production.

India aims to maintain strong ties with Russia while deepening partnerships with the U.S. and Western allies.

4. India and China

Background

Early Relations and the Panchsheel Agreement (1954)

• India and China initially had friendly relations, focusing on Asian unity and anti-colonialism.
• The Panchsheel Agreement (1954) established five principles of peaceful coexistence, including respect for sovereignty and non-interference.
• The slogan “Hindi-Chini Bhai Bhai” (India-China Brotherhood) symbolized unity, but tensions emerged over Tibet and border disputes.

1962 Sino-Indian War and Its Effect on Relations

• In 1962, China attacked India over border disputes in Aksai Chin (Ladakh) and Arunachal Pradesh, leading to India’s defeat.
• The war created deep mistrust, prompting India to strengthen its military and align with the Soviet Union.
• Relations improved with Rajiv Gandhi’s 1988 visit to China, but border tensions persist.

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Main Areas of Interaction

Economic Relations: Trade and Investments

• China is India’s largest trading partner, with trade reaching $136 billion in 2023.
• India faces a trade deficit of over $100 billion, importing more from China than it exports.
• Despite political tensions, Chinese investments remain strong in Indian sectors like technology (startups, smartphones, telecoms—Xiaomi, Oppo, Huawei).

Border Issues and Conflicts (e.g., LAC Conflicts, Doklam, Galwan)

• The Line of Actual Control (LAC) remains a major dispute:
  • Doklam Standoff (2017) – A 73-day military standoff in Bhutan over Chinese road construction.
  • Galwan Valley Clash (2020) – A violent encounter causing casualties on both sides, worsening ties.
  • Frequent Chinese intrusions force India to boost border security and infrastructure.

Competition and Cooperation in Global Forums (e.g., BRICS, AIIB)

• Despite rivalry, India and China cooperate in BRICS, SCO, and the Asian Infrastructure Investment Bank (AIIB).
• China blocks India’s NSG (Nuclear Suppliers Group) entry and vetoes UN sanctions on Pakistan-based terrorists, straining ties.

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Challenges in Relations

Strategic Rivalries in the Indo-Pacific and South Asia

• China’s Belt and Road Initiative (BRI) expands its influence, but India opposes it due to sovereignty concerns (CPEC passes through PoK).
• India counters China through QUAD (India, U.S., Japan, Australia) and its Act East Policy to strengthen ASEAN ties.
• China’s growing ties with Pakistan (CPEC, defense cooperation) increase regional tensions.

Trade Imbalances and Economic Dependencies

• India relies heavily on Chinese imports (electronics, pharmaceuticals, telecom equipment).
• India promotes “Atmanirbhar Bharat” (Self-Reliant India) and “China+1” to reduce dependency.

Different Views on Global Order

• China seeks a China-dominated world order, while India supports a multipolar global system with strategic autonomy.
• Disagreements on UN reforms, Taiwan, Indo-Pacific policies, and the Ukraine war highlight ideological differences.

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Current and Future Prospects

Managing Border Issues through Talks

• Multiple rounds of Corps Commander-level talks have aimed at de-escalation.
• The Working Mechanism for Consultation and Coordination (WMCC) exists, but progress remains slow and uncertain.

Opportunities for Economic and Strategic Cooperation

• Despite tensions, trade relations persist due to economic pragmatism.
• Potential areas of cooperation include climate change, AIIB investments, and the Regional Comprehensive Economic Partnership (RCEP).

Finding Common Interests in a Multipolar World

• India and China may collaborate on global governance (G20, WTO reforms), counter-terrorism, and supply chain diversification.
• The future of their relationship depends on border stability, economic strategies, and shifting global geopolitics.

5. India’s Relations with the USA, Russia, and China

Differences in Partnerships and Global Position

Aspect	USA	Russia	China
History	Tense during the Cold War, but better since 1991	Close ally during the Cold War; major partner in defense & energy	Early friendship, but conflicts since 1962
Defense	Stronger cooperation (QUAD, LEMOA, COMCASA, BECA)	Biggest arms supplier (S-400, BrahMos missiles)	Border conflicts and military tensions
Economy	Trade over $190 billion (2023); key investment source	Limited trade (~$50 billion); focuses on defense & energy	Biggest trade partner ($136 billion), but huge trade deficit
Rivalry	Competes with China; sees India as key for Indo-Pacific strategy	Balancing between India & China, but closer to China after Ukraine war	Major competitor; supports Pakistan (CPEC, BRI)
Groups	QUAD, G20, I2U2	BRICS, SCO, INSTC	BRICS, AIIB, SCO
Challenges	Trade disputes, CAATSA sanctions risk, visa issues for Indians	Russia-China ties growing, Western sanctions on Russia	Border clashes, economic reliance, strategic distrust

Balancing Rivalries and Alliances

• India balances ties with the U.S. (Indo-Pacific cooperation), Russia (defense & energy), and China (trade, cautiously).
• The Russia-China partnership after the Ukraine war makes this balancing act harder.
• QUAD vs. BRICS – India engages with both, avoiding strict alliances.

India’s Goal for Independence in Foreign Policy

• India follows a strategic autonomy approach, seen in its neutral stance on Ukraine and continued trade with Russia despite Western pressure.
• No military alliances – India promotes defense self-reliance (Atmanirbhar Bharat).
• Multipolar strategy – Engaging with multiple powers without being dependent on any.

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6. Conclusion

India’s Role in Global Power

• India is emerging as a major global player, active in UN, G20, BRICS, QUAD, and SCO.
• It maintains a balanced foreign policy, leveraging its economic, military, and diplomatic strengths.
• India’s Indo-Pacific strategy, space advancements (ISRO missions), and digital economy growth enhance its global influence.

Challenges and Opportunities for India

Challenges:

• Border tensions with China & Pakistan (LAC conflicts, terrorism).
• Balancing U.S.-Russia relations amid rising global conflicts.
• Reducing dependence on China by diversifying supply chains.
• Climate change & energy security concerns.

Opportunities:

• Strengthening South Asian leadership through Neighborhood First & Act East Policies.
• Expanding defense & technology ties with the U.S., while maintaining Russia relations.
• Becoming a global manufacturing hub (Make in India, PLI schemes).
• Leading in AI, digital economy, and global governance.

India’s Foreign Policy Goals

• Aatmanirbhar Bharat (Self-Reliant India) – Reducing dependency on any one country.
• Multipolarity & Strategic Balancing – Avoiding rigid alliances.
• Regional Leadership & Global Voice – Expanding influence in international decision-making.
• Managing China Relations & Strengthening Indo-Pacific Ties – Ensuring border stability while engaging in regional partnerships.

India’s foreign policy will keep evolving, aiming for global influence while staying independent.