5 Key Challenges India Faces in Managing Strategic Alliances

As India navigates a rapidly evolving global landscape, its strategic alliances — from the Quadrilateral Security Dialogue (QUAD) to its enduring partnership with Russia — are critical pillars of its foreign policy. However, these alliances are not without challenges. India’s delicate balancing act involves aligning with diverse global powers while maintaining strategic autonomy and safeguarding its national interests. How does India reconcile its deep economic ties with China while countering its assertiveness through QUAD? Can India sustain its defence partnership with Russia amid Western pressure and shifting geopolitical realities? Moreover, as India deepens its ties with the United States and explores emerging partnerships in the Middle East, it must navigate policy divergences and competing priorities.

These challenges, though complex, offer India an opportunity to refine its diplomatic approach and strengthen its global influence. Exploring these key challenges provides a deeper understanding of the intricate web of India’s strategic engagements and their implications for its future.

Timeline of India’s Foreign Policy Evolution: From Non-Alignment to Strategic Engagement

Key Challenges: Navigating Complex Geopolitics

India’s rise in a multipolar world brings with it a host of strategic challenges. As India asserts itself as a key player in global governance, it finds itself navigating a geopolitical minefield marked by territorial disputes, shifting alliances, economic interdependencies, and emerging threats. Balancing these multifaceted challenges while safeguarding national interests requires a blend of diplomatic finesse, strategic pragmatism, and long-term vision. Let’s take a closer look at the most pressing challenges India faces.

1. China’s Strategic Assertiveness and Border Tensions

One of the most persistent challenges India faces is the increasing assertiveness of China across multiple fronts. The unresolved border dispute along the Line of Actual Control (LAC), exacerbated by the 2020 Galwan Valley clashes, continues to cast a shadow on India-China relations. Despite multiple rounds of diplomatic and military-level talks, China’s aggressive military posture along the LAC and infrastructure development in disputed territories remain a serious concern.

Economic Interdependence and the Trade Deficit

Even as India seeks to counter China’s strategic ambitions, economic ties between the two countries present a paradox. China remains India’s largest trading partner, with bilateral trade exceeding $136 billion in 2024. However, India runs a massive trade deficit of over $60 billion, making it vulnerable to economic leverage by China. Despite efforts to reduce this dependency through initiatives like Production Linked Incentives (PLI) and Atmanirbhar Bharat (Self-Reliant India), India’s reliance on Chinese imports, particularly in critical sectors such as electronics, pharmaceuticals, and telecom, poses a long-term challenge.

The Belt and Road Initiative (BRI) and Regional Influence

China’s Belt and Road Initiative (BRI) is another geopolitical challenge that India has firmly opposed, primarily due to the inclusion of the China-Pakistan Economic Corridor (CPEC), which passes through Pakistan-occupied Kashmir (PoK). India views CPEC as a violation of its sovereignty and territorial integrity, leading to India’s decision to stay out of the BRI. Moreover, China’s growing influence in South Asia, Africa, and the Indian Ocean Region (IOR) through infrastructure financing and development projects adds another layer of complexity to India’s regional strategy.

“India cannot afford to be a passive observer in the face of China’s expanding footprint in the region. Our strategic response must be proactive, leveraging alliances and partnerships to safeguard our interests.”

2. Balancing US-Russia Dynamics Amid Global Polarisation

India’s multi-alignment strategy faces a stern test as it navigates the growing polarization between the United States and Russia. Traditionally, India has maintained a time-tested strategic partnership with Russia, dating back to the Cold War era. Russia remains a critical supplier of defense equipment to India, with nearly 60% of India’s military hardware originating from Russian sources. However, Western sanctions on Russia following the Ukraine conflict have complicated India’s ability to sustain this defense cooperation.

Defence Dependence and Technological Constraints

While India has diversified its defense procurement portfolio by acquiring systems from the US, France, and Israel, Russian technology continues to dominate critical areas such as missile defense and submarine technology. India’s acquisition of the S-400 missile defense systems from Russia, despite strong objections and potential sanctions from the US under CAATSA (Countering America’s Adversaries Through Sanctions Act), reflects India’s intent to safeguard its national security interests, even as it balances its ties with Washington​.

Deepening Strategic Ties with the US

Simultaneously, India has been strengthening its strategic partnership with the United States, particularly in areas such as technology, defense cooperation, and intelligence sharing. The India-US Defense Technology and Trade Initiative (DTTI) and Quad engagements reflect India’s growing alignment with US-led initiatives aimed at maintaining a rules-based international order in the Indo-Pacific. However, managing the delicate balance between its historical ties with Russia and deepening engagement with the US remains a diplomatic tightrope for India.

3. Terrorism and Regional Instability: The Pakistan Conundrum

India’s relationship with Pakistan remains fraught with terrorism, cross-border infiltration, and state-sponsored violence. Despite multiple attempts at dialogue and confidence-building measures, the Pakistan-backed terror ecosystem continues to destabilize India’s security landscape. The 2019 Pulwama attack and subsequent Balakot airstrikes underscored the fragile nature of peace along the Line of Control (LoC).

Cross-Border Terrorism and Proxy Warfare

Pakistan-based terrorist organizations, such as Lashkar-e-Taiba (LeT), Jaish-e-Mohammed (JeM), and Hizbul Mujahideen, continue to pose a significant threat to India’s internal security. The use of proxy warfare and asymmetric tactics by Pakistan’s intelligence agencies complicates India’s counterterrorism strategy. India’s response has been robust, combining surgical strikes, diplomatic isolation, and global pressure to hold Pakistan accountable.

Challenges in Afghanistan and Taliban’s Resurgence

The return of the Taliban to power in Afghanistan adds another layer of complexity to India’s regional security calculus. India’s developmental investments and strategic presence in Afghanistan are now under threat, with concerns about Afghan soil being used as a base for anti-India activities. India’s ability to engage with the Taliban while safeguarding its security interests remains a diplomatic challenge.

4. Energy Security and Climate Change: Walking a Tightrope

India’s energy needs are expected to double by 2040, driven by rapid urbanization, industrialization, and economic growth. As the third-largest energy consumer in the world, India faces the daunting task of balancing energy security with environmental sustainability. While India has made remarkable progress in expanding renewable energy capacity, its dependence on fossil fuels, particularly coal, remains high.

Oil Imports and Strategic Vulnerabilities

India imports nearly 85% of its crude oil, with a significant portion coming from the Middle East. Geopolitical instability in the Gulf region, particularly tensions between Iran and Saudi Arabia, poses a threat to India’s energy security. India’s efforts to diversify its energy sources through partnerships with Russia, the US, and Africa have mitigated some risks, but the volatility in global oil markets remains a persistent challenge.

Commitment to Renewable Energy and Climate Goals

India’s ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030 is a testament to its commitment to climate action. Initiatives like the International Solar Alliance (ISA) and the Global Biofuels Alliance (GBA) highlight India’s leadership in promoting sustainable energy transitions. However, the transition to a low-carbon economy requires significant financial investments, technological innovation, and policy coherence, making it a formidable challenge for India.

5. Digital Security and Emerging Technological Threats

As India embraces digital transformation at an unprecedented pace, ensuring cybersecurity and safeguarding critical infrastructure have become national imperatives. With over 1 billion mobile users and rapid growth in digital payments via platforms like UPI, India is a prime target for cyber-attacks, data breaches, and digital espionage.

Cybersecurity Challenges and Digital Vulnerabilities

India faces a growing threat from state-sponsored cyber-attacks, particularly from adversaries like China and Pakistan. Critical infrastructure, including power grids, banking systems, and defense networks, is increasingly vulnerable to sophisticated cyber intrusions. India’s National Cyber Security Strategy aims to fortify digital defenses, but the evolving nature of cyber threats necessitates constant vigilance and technological upgrades.

Artificial Intelligence (AI) and Ethical Concerns

As India invests heavily in Artificial Intelligence (AI), machine learning, and blockchain technologies, addressing the ethical, regulatory, and privacy implications of these technologies becomes essential. India’s leadership in shaping a global digital governance framework will be crucial in ensuring that emerging technologies serve as tools for inclusion and empowerment, rather than instruments of control.

India’s Diplomatic Leadership: Shaping Global Narratives with Vision and Purpose

In an era where global governance structures are being questioned and the voices of developing nations often go unheard, India has emerged as a champion of inclusive diplomacy. Leveraging its historical ties with the Global South and its growing economic and geopolitical clout, India is playing a pivotal role in reshaping global narratives. This diplomatic leadership is not just about securing India’s strategic interests but also about advocating for a fairer, more representative world order.

Voice of the Global South Summits: Amplifying Marginalised Voices

Since 2023, India’s convening of the Voice of the Global South Summits (VOGSS) has positioned it as a leading advocate for the developing world. These summits have become critical platforms where leaders from developing nations deliberate on pressing global challenges such as climate change, food and energy security, and equitable development.

At the third summit held in 2024, India emphasized the need for inclusive global governance where the voices of the Global South are not merely acknowledged but actively shape international decision-making. India’s advocacy during these summits reflects a deep understanding of the unique challenges faced by developing nations and the need to craft sustainable solutions that address local realities.

“The future of global governance cannot be decided in isolation by a few. The aspirations of the Global South must guide the world’s collective destiny,” Prime Minister Narendra Modi declared during the summit, highlighting India’s vision of a more equitable and inclusive world order​.

India’s G20 Presidency: Redefining Global Priorities

India’s G20 Presidency in 2023 was a landmark moment that underscored its ability to shape global discourse on development and inclusion. India’s decision to champion the inclusion of the African Union (AU) as a permanent member of the G20 reflected its commitment to correcting historical inequities in global governance. This move, seen as a masterstroke of India’s diplomatic prowess, brought 55 African nations to the global decision-making table, ensuring that their concerns and aspirations were no longer sidelined.

The New Delhi Declaration during India’s presidency went beyond routine diplomatic language by focusing on:

• Sustainable Development Goals (SDGs): Bridging financing gaps and accelerating progress toward the 2030 agenda.
• Climate Justice and Energy Transition: Advocating for greater support to developing nations in achieving low-carbon growth.
• Digital Transformation: Promoting India’s Digital Public Infrastructure (DPI) as a scalable model for inclusive growth.

India’s diplomatic leadership in the G20 demonstrated a nuanced understanding of global challenges and a genuine desire to promote south-south cooperation. This approach not only enhanced India’s soft power but also reaffirmed its role as a bridge between the developed and developing world.

Digital Public Infrastructure (DPI): Exporting India’s Digital Success Story

India’s Digital Public Infrastructure (DPI) has emerged as a transformative force not just for the country but also as a model for developing nations seeking to leverage technology for inclusive growth. India’s DPI, which includes innovations like Aadhaar (the world’s largest biometric ID system) and Unified Payments Interface (UPI), has revolutionized digital inclusion, ensuring that essential services reach the most vulnerable populations efficiently.

“India’s digital revolution is not just about technology; it’s about empowering people and enabling inclusive growth,” PM Modi remarked at the G20 summit, emphasizing India’s commitment to digital equity.

India’s DPI initiatives are now being showcased globally as models of innovation and efficiency. Countries in Africa, Latin America, and Southeast Asia are exploring the adoption of India’s digital governance frameworks to enhance their own public service delivery. For instance:

• Aadhaar’s biometric authentication model is being considered by several African nations to streamline service delivery.
• UPI’s instant payment system is being studied by multiple countries to develop secure and scalable digital financial infrastructure.

Through these initiatives, India is not only exporting technology but also contributing to the creation of digital public goods that can empower billions globally.

India’s Leadership in Climate Diplomacy: Championing Climate Justice

India has positioned itself as a leader in climate diplomacy, advocating for a fair and just transition toward sustainable development. Recognizing that developing nations face disproportionate challenges in balancing economic growth with climate action, India has consistently highlighted the need for climate justice at global forums.

Key Climate Initiatives Led by India:

• International Solar Alliance (ISA): India’s initiative to promote solar energy adoption globally, especially in tropical countries, has now garnered over 120 member nations. The ISA aims to facilitate the transfer of solar technology and finance to developing nations, ensuring that the benefits of renewable energy are universally accessible.
• Global Biofuels Alliance (GBA): Launched during India’s G20 Presidency, the GBA aims to promote the adoption of sustainable biofuels as part of the global energy transition strategy.
• Coalition for Disaster Resilient Infrastructure (CDRI): India’s initiative to promote climate-resilient infrastructure is helping vulnerable nations adapt to the growing threats of climate change.

India’s emphasis on sustainable development and climate justice resonates strongly with the concerns of developing nations, reinforcing its role as a thought leader in global climate diplomacy.

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India’s Role in Multilateral Platforms: Expanding Strategic Influence

India’s diplomatic influence extends beyond bilateral ties and regional forums to major multilateral platforms where it plays an increasingly assertive role. India’s active participation in organizations like the United Nations (UN), BRICS, QUAD, SCO, and I2U2 reflects its multi-alignment strategy — engaging with diverse geopolitical blocks while safeguarding its core national interests.

QUAD: Balancing Security and Development

India’s involvement in the Quadrilateral Security Dialogue (QUAD) — alongside the US, Japan, and Australia — highlights its commitment to a free and open Indo-Pacific. QUAD’s focus on maritime security, technology cooperation, and climate resilience has positioned India as a key player in ensuring regional stability.

BRICS and SCO: Strengthening South-South Cooperation

India’s participation in BRICS and the Shanghai Cooperation Organisation (SCO) reflects its enduring commitment to south-south cooperation. These platforms allow India to engage with emerging economies and shape alternative narratives that challenge the dominance of Western-centric institutions.

“India’s multi-alignment approach ensures that we remain flexible and agile in a rapidly evolving global order,” noted External Affairs Minister Dr. S. Jaishankar during the 2024 BRICS Summit.

India’s Humanitarian Diplomacy: Extending a Helping Hand

India’s humanitarian diplomacy has further solidified its reputation as a responsible global power. From providing vaccines to over 90 countries under the Vaccine Maitri initiative during the COVID-19 pandemic to extending disaster relief assistance to nations affected by natural calamities, India’s actions reflect its commitment to Vasudhaiva Kutumbakam — the world is one family.

India’s disaster relief missions in neighboring countries and beyond, such as its swift response to the Nepal earthquake and cyclone-hit nations in the Indian Ocean region, have earned it widespread goodwill and trust. By blending strategic outreach with humanitarian compassion, India is not only safeguarding its regional interests but also strengthening its global influence.

Conclusion: Charting the Future Amidst Strategic Complexities

India’s strategic alliances are a testament to its ability to maintain equilibrium in a multipolar world, but the path forward is fraught with challenges. Diverging priorities within QUAD, potential sanctions stemming from India’s defense ties with Russia, and occasional friction in India-US relations underscore the complexities India faces in preserving its strategic autonomy. Furthermore, evolving dynamics in the Middle East through initiatives like I2U2 highlight India’s intent to diversify its partnerships.

As India charts its future course, addressing these challenges will be pivotal in strengthening its role as a global leader. Will India’s calibrated approach enable it to strike the right balance between traditional partnerships and emerging alliances? Only time will reveal how India’s diplomatic dexterity shapes its destiny in an unpredictable world.

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References

Ijraset. (n.d.). Indias evolving role in global politics: A Comprehensive analysis. IJRASET. https://www.ijraset.com/research-paper/indias-evolving-role-in-global-politics

India in a multipolar world. (2012, December 21). World Bank. https://www.worldbank.org/en/news/press-release/2011/05/13/india-in-a-multipolar-world

Yadav, Y. a. P. P. (2024, October 25). Dialogue to diplomacy: QUAD is shaping the emerging global order | Policy Circle. Policy Circle. https://www.policycircle.org/opinion/quad-reshaping-indo-pacific/