Perspective: Indian Diplomacy in 2024

• 03 Jan 2025

For Prelims: BRICS, SCO, G20, Initiative on Critical and Emerging Technologies (iCET),  Currency Swap Agreement,  Chabahar Port, China’s Belt and Road Initiative,  Global Biofuel Alliance, India-Middle East-Europe Economic Corridor (IMEC), India's Neighborhood-First Policy, Free Trade Agreements (FTAs), critical minerals, AI technologies, Vasudhaiva Kutumbakam, Quad, South-South cooperation, India-Africa Forum Summit, supply chain resilience, Indo-Pacific. 

For Mains: Significance of Indian Foreign Policy for Securing India’s Strategic Interests.  

Why in News? 

In 2024, India's External Affairs Minister described the country's foreign policy as embodying the concept of "Vishwabandhu," meaning a friend to the world.  

How Did India Engage with Major Powers and Neighbours in 2024? 

• Context of Geopolitical Instability: 2024 saw India navigating a challenging global environment marked by the Russia-Ukraine war, heightened Middle Eastern tensions, and the US-China rivalry.  
  • India's foreign policy balanced global partnerships with neutrality, addressing China's assertiveness, engaging in BRICS, SCO, and G20, while maintaining robust energy trade with Russia, including record oil imports.  
• Ukraine Visit: India’s visit to Ukraine demonstrated a neutral yet principled stance, reaffirming support for sovereignty while advocating dialogue.  
  • Humanitarian aid strengthened its role as a global mediator amidst great power rivalries. 
• India-China Relations: A major achievement was the disengagement of troops along the Line of Actual Control (LAC) in Ladakh, restoring pre-2020 arrangements.  
  • This marked a turning point after years of tensions and was accompanied by renewed cross-border cooperation, including the resumption of the Kailash Mansarovar Yatra. 
  • Focus remains on counterbalancing China’s assertiveness through Quad cooperation and Indo-Pacific strategies. 
• India-Bangladesh Relations: Despite political transitions, India’s proactive engagement with Bangladesh’s new government safeguarded bilateral ties. 
  • Initiatives like the Maitree Power Plant and investment in trade underline economic interdependence and strategic collaboration in connectivity projects. 
• Engagement in the Gulf Region: In 2024, India strengthened its Gulf engagement by enacting the India-UAE Bilateral Investment Treaty (BIT), ensuring robust investor protection and arbitration-based dispute resolution while preserving policy space. 
  • India advanced Gulf ties with Saudi Arabia, Oman, Qatar, and Bahrain, focusing on energy, trade, investments, and strategic cooperation. 
• US-India Relations: While the partnership expanded in areas like critical technology through the Initiative on Critical and Emerging Technologies (iCET).  
  • Controversies, including allegations of involvement in a high-profile case, tested diplomatic ties, yet bilateral trade reached a historic high of USD 128 billion. 
• India-Canada Relations: Accusations linking Indian officials to Khalistani leader Nijjar’s killing led to a diplomatic freeze, disrupting discussions on a USD 5 billion trade dialogue and complicating ties with the Indian diaspora. 
• Sri Lanka and Maldives: India’s proactive diplomacy with Sri Lanka included agreements in infrastructure and trade, while a USD 400 million currency swap agreement supported Maldives’ economic recovery. 
• Multilateral Initiatives: As G20 president in 2023, India prioritized debt relief for developing nations and launched the Global Biofuel Alliance, showcasing its leadership in sustainable development. 
  • Initiatives like the India-Middle East-Europe Economic Corridor (IMEC) reflected India’s commitment to enhancing global connectivity and trade. 
• Diplomatic Tightrope: India's neutral stance on conflicts like Gaza highlighted its strategy of balancing moral positions with pragmatic interests.  
  • Engagements with both Israel and Palestine underlined its commitment to peace. 

What are Global Challenges Associated with India’s Foreign Policy? 

• Relations with Neighbours: Managing China’s LAC aggression and Indo-Pacific assertiveness, while balancing economic and political sensitivities in the region, demands strategic clarity. 
  • Despite the resolution at the LAC, China’s outreach in South Asia, particularly through investments in Nepal and Pakistan, required India to strengthen its regional presence. 
• The Role of Deep State: External influences destabilizing South Asian neighbours pose significant challenges.  
  • Political transitions in Bangladesh and rising attacks on minorities, exacerbates political unrest and anti-India sentiment, challenging India's neighborhood-first policy. 
• Russia-Ukraine War: While India imported significant Russian oil, maintaining neutrality amid growing global polarization tested its diplomacy. 
• US-China Rivalry: The US administration’s trade tariffs and immigration policies posed challenges for Indian sectors like IT, while managing ties with both powers required careful balancing. 
• Middle East Conflicts: Instability in the Gulf, where India has a USD 200 billion trade relationship, highlighted the need for robust diplomatic interventions. 
• Canada Row: Accusations linked to recent Khalistan issue led to retaliatory diplomatic actions, disrupting economic and cultural exchanges.  
  • This strained ties with the Indian diaspora in Canada, numbering over 700,000. 
• Internal Criticism: Abstentions at UN votes on Gaza resolutions drew criticism for inconsistency in India’s approach to human rights. 
• Economic Pressures: Delayed Free Trade Agreements (FTAs) with the UK and European Union (EU) limited India’s trade expansion potential. 
  • South Asia’s economic fragility, in countries like Pakistan and India, added strain on India’s efforts to promote regional economic stability. 
• Technological and Security Concerns: Cybersecurity emerged as a critical area, with India facing increased threats in the digital space.  
  • Partnerships for critical minerals and AI technologies highlighted the growing importance of securing technological frontiers. 

What are India’s Foreign Policy Priorities for 2025 and Beyond? 

• Strengthening Bilateral Relations 
  • Fostering International Cooperation: India’s foreign policy for 2025 and beyond aims to embody the principle of Vasudhaiva Kutumbakam (the world is one family), as envisioned by its leadership.  
    • This reflects a steadfast commitment to fostering international cooperation, inclusivity, counterterrorism diplomacy and sustainable global development through multilateral engagements and partnerships. 
  • US and Quad: Deepening technological and defense partnerships with the US and consolidating the Quad to counter China's Indo-Pacific ambitions. 
    • Leveraging Indian-origin policymakers in the US could amplify strategic alignment in defense, technology, and immigration, solidifying India’s position in Indo-Pacific partnerships and enhancing bilateral cooperation. 
  • Russia-India Cooperation: Expanding ties beyond defense to include energy, manufacturing, and technology, especially in light of the India-Russia bilateral summit. 
  • Europe Engagements: Reviving stalled FTAs with the EU and UK to boost trade relations. 
  • Engagement with Gulf Sovereign Funds: Dialogue of civilizations initiatives could unlock investments from Gulf's sovereign wealth funds  into India’s critical infrastructure, renewable energy, and technology sectors, further deepening bilateral ties. 
• Focusing on Regional Stability 
  • Bangladesh: Engaging with the new leadership to address border security and minority concerns while fostering development partnerships. 
    • Strengthened regional diplomacy and strategic preparedness are essential to safeguard India’s security and economic interests. 
  • Strengthening ties with Sri Lanka, Bhutan, Maldives through economic aid and security collaboration. 
• Global Leadership in Multilateral Forums 
  • Leading initiatives in G20, BRICS, and SCO to shape discussions on global challenges, including climate change, food security, and economic recovery. 
  • Advancing South-South cooperation, particularly with Africa and Latin America, through initiatives like the India-Africa Forum Summit. 
• Economic and Technological Focus 
  • Enhancing supply chain resilience and integrating into global trade frameworks. 
  • Promoting digital and technological partnerships, focusing on AI, critical minerals, and emerging technologies. 

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims: 

Q. The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as (2016)

(a) G20  

(b) ASEAN 

(c) SCO  

(d) SAARC 

Ans: (b) 

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 Mains: 

Q. In respect of India-Sri Lanka relations, discuss how domestic factors influence foreign policy. (2013)

Q. Project ‘Mausam’ is considered a unique foreign policy initiative of the Indian government to improve relationships with its neighbours. Does the project have a strategic dimension? Discuss.(2015)