Impact of Recent Government Changes on India’s Foreign Relations
Neeraj Agarwal
I Neeraj Agarwal, am a Fellow Member of ICAI, practicing under the banner of M/s AAN & Associates LLP, a firm based out of Banglore Mumbai.
I am also registered under Insolvency and Bankruptcy Board of India as a Registered Valuer for valuation of Security or Financial Assets (Passed in Feb 2020)
I am also holding Bachelor of Commerce (B. Com) degree from Calcutta University (Passed in 2011).
I have corporate working experience in Wipro. After working in Wipro for a short period I started my practice in late 2013 and have been in practice so far for the last 10 years. I have also completed a Certificate Course by ICAI on IND-AS in 2020. I have also cleared Social Auditor Exam conducted by NISM.
I have been inducted as a Special Invitee to the Sustainability Reporting Standard Board, ICAI for the FY 2023-24.
India’s recent government changes have influenced its diplomatic relations with countries like the USA, Mexico, Bangladesh, Russia, Pakistan, and Sri Lanka. Each of these relationships brings different challenges and opportunities, calling for skilled diplomacy.
USA: Strengthening Strategic Partnerships
The USA is a key ally for India, especially in areas like technology, clean energy, and security in the Indo-Pacific region. Despite political shifts in the U.S., the India-U.S. partnership remains robust, driven by shared concerns over China. The Quad alliance with Japan and Australia further reinforces India’s commitment to regional stability. In 2024, India and the U.S. joined in military exercises under the Malabar naval collaboration to enhance maritime security. President Joe Biden’s administration has prioritized collaboration on climate, AI, and semiconductor technology.
Mexico: Building Economic Connections
Mexico is an emerging economic partner for India, with growing ties in pharmaceuticals, automotive manufacturing, and IT. Mexico’s trade reforms and agreements, such as the USMCA, provide India with an entry into North American markets. In 2023, a Bilateral Business and Trade Forum focused on enhancing collaboration in these sectors. Both countries are keen on expanding trade beyond the Asia-Pacific region.
Bangladesh: Reinforcing Regional Influence
India’s relationship with Bangladesh is vital for South Asian stability, particularly as China increases its presence there. India has strengthened ties through energy and infrastructure projects and Bangladesh’s granting of port access has boosted regional trade. In 2024, India and Bangladesh signed several energy and infrastructure agreements as part of India’s “Neighbourhood First” policy, which promotes cooperation within South Asia.
Russia: Balancing Historical Ties with New Realities
India’s historical relationship with Russia, especially in defense, has become more complex due to global sanctions and the Ukraine conflict. India continues to rely on Russian military equipment while diversifying its defense partnerships to meet Western expectations. In 2024, India emphasized a multipolar approach in international affairs, actively engaging with Russia through forums like BRICS, while also building ties with the U.S., Israel, and France.
Pakistan: Ongoing Challenges
India’s ties with Pakistan are marked by longstanding disputes, particularly over Kashmir and terrorism. Leadership changes in Pakistan have had little effect on resolving these core issues. India maintains a focus on security and engages with Pakistan mainly through multilateral channels. Trade between the two remains minimal, with cross-border tensions and security concerns limiting progress.
Sri Lanka: Supporting Stability amid Chinese Influence
Political challenges in Sri Lanka have encouraged India to step in as a stabilizing force, providing essential economic and development support. China’s investments in Sri Lanka have led India to counterbalance this influence by increasing its humanitarian aid, financial assistance, and infrastructure investments. India’s support is crucial for ensuring Sri Lanka’s alignment in the Indian Ocean region.
Conclusion: Adapting to a Changing World
India’s foreign policy reflects a flexible approach in a dynamic global landscape. By strengthening alliances with major powers like the U.S. and countering China’s presence in South Asia, India enhances its influence regionally and globally. With a balanced mix of economic, defense, and diplomatic strategies, India is shaping its role as a significant player in a multipolar world.
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