TitleIndia’s Foreign Policy and Strategic Diplomacy in the Era of Trade Conflicts
Author(s)Dr.T.Mohana Sundari
Filengp-book-pdf.pdf
Abstract

India's foreign policy in the era of trade conflicts emphasizes strategic autonomy through hedging and
balancing relations with major powers like the US, China, and Russia amid escalating tariffs and supply chain
shifts. This approach allows India to navigate US-imposed tariffs (e.g., 50% on Indian goods in 2025) while
maintaining economic ties with China and energy imports from Russia. India's foreign policy and strategic
diplomacy in the era of trade conflicts reflect a pragmatic evolution from Nehruvian non-alignment to multialignment,
prioritizing strategic autonomy amid US-China rivalry and escalating tariffs. Since 2018, global
trade wars—intensified by US reciprocal tariffs under Trump's second term—have tested India's balancing
act, with 50% duties on Indian exports in 2025 linked to Russian oil imports, threatening $200B bilateral
trade while exposing supply chain vulnerabilities. India hedges by deepening US defense ties (e.g., Quad,
iCET) for tech/security gains, yet resists full alignment to preserve China/Russia engagement. Post -Galwan
2020, app bans and FDI curbs countered China, but $100B+ trade persists, bolstered by 2025 SCO aviation
restarts. Russian energy imports defy US sanctions, ensuring affordability for 1.4B citizens, while EU/Middle
East diversification mitigates tariff shocks. Facing US 25-50% tariffs on textiles/jewelry/shrimp (2025-2026),
India paused some defense deals but denied halts, emphasizing sovereignty.
Keywords: India’s Foreign Policy, Strategy, Trade Conflicts.