Perspective: Indian Diplomacy in 2024 | 03 Jan 2025

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.