The Aakhya Weekly #138 | India’s Foreign Policy 2.0: Swiping Right on the Rest of the World
In Focus: From Big Brother to ‘Friend in Deed’- India’s Forays with the Global South
by Swapneel Thakur
From the Caribbean to Brunei and then to Mauritius, PM Modi has been on a spree of historic visits, forging landmark partnerships in nations that traditionally remained outside India’s foreign policy spotlight. Notably, these diplomatic efforts are unfolding amid a turbulent global landscape: Russia’s ongoing siege of Ukraine, a Trump-led U.S. reigniting tariff debates, and simmering internal tensions across India’s neighborhood, including Bangladesh, Pakistan, and Myanmar.
What's intriguing is that these trips aren't merely precursors to larger visits like those to the US, Russia, or Europe. Instead, these exclusively focus on nations whose relevance to Indian foreign policy might not be immediately apparent to experts or political analysts. This comes at a time when India's economic diplomacy is undergoing a significant shift. With higher FDI limits, production-linked Incentives (PLIs), and a strong framework to attract global businesses, these measures are becoming the norm. They are frequently highlighted during the Prime Minister’s state visits and multilateral engagements. However, when considering countries like Papua New Guinea, Greece, or Guyana, one might question the nature of these relationships and what India stands to gain.
This edition of the Aakhya Weekly dives deep into this intriguing and evolving relationship. Is India redefining its foreign policy playbook? What’s the bigger strategic picture, and what does India truly stand to gain?
Understanding India’s Foreign Policy Since Modi 2.0
Under Modi 1.0, what many scholars once described as strategic hedging evolved into a more calculated and proactive strategy. Instead of aligning too closely with any single power, India utilised its economic growth to establish itself as a neutral yet essential player in global affairs. Positioning itself as a stable and dependable global hub for manufacturing and services, India skillfully balanced its diplomatic engagements while seizing economic opportunities. This approach was reflected in several high-profile state visits during Modi’s first term, including multiple trips to China, the US, Russia, Europe, and the Middle East—each strategically targeting nations with significant economic potential.
However, Modi 2.0 unfolded amid a series of unprecedented global events that reshaped the geopolitical landscape and foreign policy priorities worldwide. Escalating tensions with China strained bilateral relations, while the COVID-19 pandemic disrupted global supply chains, forcing a reassessment of economic interdependencies and the need for greater self-reliance. What was unexpected during this period, however, was that Southeast Asia remained a preferred destination over India in the evolving China+1 strategy. Therefore, under Modi 2.0, a foreign policy was crafted to strike a perfect balance between national objectives and international priorities. Domestically, the emphasis was on self-reliance, localising production, and fostering indigenous innovation. Internationally, the focus was on maintaining and executing an independent foreign policy in a world divided between the Russia- Ukraine and Israel- Palestine conflicts.
India's foreign policy has evolved beyond regional hegemony, embracing a more prominent role in global governance. Multilateral institutions have become central to this vision, shaping India's diplomatic engagements and strategic outreach. From securing a seat as a non-permanent member of the United Nations Security Council (UNSC) to hosting the G20 Summit, India has demonstrated its commitment to global leadership. This strategic engagement has enabled India to participate actively in key multilateral discussions to lead on critical issues aligned with its international agenda. From advocating maritime security, peacekeeping operations, and counterterrorism efforts in the Middle East to invoking the Peace Clause at the WTO, India has consistently asserted its ability to influence global governance. Additionally, by spearheading international alliances such as the International Solar Alliance (ISA) and the Coalition for Disaster Resilient Infrastructure (CDRI), India has reinforced its role as a proactive global partner, driving sustainable and resilient development initiatives worldwide.
The Role of the ‘Rest of World’
In a world divided by geography, economics has long served as a binding force, linking nations since the advent of globalisation. The power of global trade in goods and services has fostered deeper economic interdependence, enabling greater diplomatic engagement on the world stage. At the same time, nations have grown increasingly cautious of major powers like the U.S. and China. China's debt-trap diplomacy and the U.S.'s foreign policy moves, including its withdrawal from Afghanistan and the Ukraine conflict, have created a space for a new player to emerge in the international arena.
India finds itself at a pivotal moment, poised to expand its influence by tapping into emerging markets and forging strategic relationships that strengthen its global leverage. This was evident in its election to the UN Security Council with an overwhelming 184 votes in favor out of 193 members, underscoring its growing diplomatic stature. Unlike traditional great powers, whose past engagements have drawn criticism from experts, India’s efforts show how it has redefined its approach. Moving away from the "Big Brother" perception, it now positions itself as Viswamitra—a true friend of the world—championing cooperation, mutual respect, and an inclusive global partnership.
From Vaccine Maitri to initiatives such as Lines of Credit (LoC), the Concessional Finance Scheme (CFS), and Grant-in-Aid projects, India’s actions indicate how it has actively expanded its global partnerships. Its development efforts span countries like Mauritius, Cambodia, Tanzania, Guyana, and the Republic of Congo, among many others, reinforcing its commitment to capacity-building and sustainable growth.
What had long been missing was a unified and collective voice for the Global South. India has stepped up in this regard, taking a leading role in advocating for the concerns of developing nations on the world stage. Key milestones include its strong push for the inclusion of the African Union (AU) in the G20, the convening of the Voice of the Global South Summits since 2023, and efforts to enhance the role of the New Development Bank—the BRICS multilateral development bank—in financing development initiatives across the Global South. Additionally, India's advocacy for UN Security Council reforms, reflected in the Kazan Declaration, further cemented its position as a champion for a more representative and equitable global order.
What's Ahead?
India's foreign policy must remain adaptive and resilient as global uncertainties reshape traditional alliances and economic frameworks. The potential re-election of President Trump in the U.S. and the rise of reciprocal tariffs as a dominant trade strategy could redefine the relationships between developed and developing nations. If these shifts begin to affect India's domestic landscape, they may challenge the delicate balance between its national and international priorities. To navigate this evolving multipolar world, India must strengthen its engagement with the Global South while solidifying its role as an indispensable partner for the Global North and developed economies. This approach will help mitigate sudden disruptions in the global order, ensuring a smooth and strategic transition in response to emerging geopolitical and economic realities.
Top Stories of the Week
Reliance Jio Partners with SpaceX to Launch Starlink in India
Reliance Jio recently announced a partnership with SpaceX to introduce Starlink satellite internet services in India. The agreement aims to significantly enhance internet accessibility across the nation, particularly in rural and remote areas where traditional broadband infrastructure is insufficient. As part of the agreement, Jio will retail Starlink solutions through its extensive network of outlets and online platforms while establishing a dedicated customer service mechanism to facilitate installation and activation.
This partnership comes shortly after a similar agreement was made by Bharti Airtel with SpaceX, escalating competition in the satellite internet sector within India. Both agreements hinge on SpaceX securing the necessary regulatory approvals from the Indian government to commence its operations. The anticipated entry of Starlink into the Indian market has the potential to bridge the existing internet connectivity gap, addressing significant disparities in internet penetration that currently hinder digital growth in India.
EPA Rollbacks Under Trump Threaten U.S. Climate Laws
The Trump administration’s Environmental Protection Agency (EPA) announced rollbacks on pollution regulations Wednesday, posing a significant threat to the foundation of U.S. climate laws. These regulatory changes weaken or repeal key environmental protections on power plants, vehicles, and waterways, raising concerns among environmental advocates and scientists.EPA Administrator Lee Zeldin defended the decision, arguing that existing climate laws stifled industrial growth, restricted mobility, and harmed domestic consumers while giving an advantage to overseas competitors.
The agency issued 31 rollbacks targeting major environmental rules, including revisiting pollution standards for cars and trucks.” In addition, the EPA is considering weakening limits on air pollution linked to respiratory and cardiovascular health issues. Other proposed changes include eliminating requirements designed to prevent power plants from contaminating waterways with toxic waste and further narrowing the scope of the Clean Water Act. These regulatory changes come despite mounting evidence of climate change’s impact, including rising global temperatures, extreme weather events, and increasing threats to public health and ecosystems. Environmental groups warn that these rollbacks could have lasting consequences for air and water quality, climate stability, and future generations.
A Few Good Reads
Suhas Palshikar supports the delimitation proposal to expand the size of the Lok Sabha so that no state loses its current strength.
Manoj Kewalramani states that China continues to view India from the prism of competition.
Pramit Bhattacharya argues that India's IAS needs reform, suggesting the creation of specialised field and policy divisions to enhance governance expertise.
AK Bhattacharya’s column highlights that the portrait of India’s GDP growth seems subject to overpainting.
T. Ramakrishnan urges Sri Lanka to back talks, as “an agreement between the two sides could put an end to this practice.”