India’s Foreign Policy and Erosion of Multilateralism

• 21 Feb 2026

For Prelims: World Trade Organization, QUAD, AUKUS, African Union, India–US Interim Trade Agreement 

For Mains: Decline of multilateralism and implications for global governance, Evolution of India’s foreign policy from non-alignment to multi-alignment, India as a leader of the Global South and a “Third Pole” in world politics

Source: TH

Why in News? 

In the Rajya Sabha, the Prime Minister of India formally acknowledged the new world order. As global power dynamics shift and multilateral structures continue to erode, India faces the complex challenge of reformulating its national identity and its approach to international relations to secure its future interests.

Summary

• Global governance is weakening due to unilateral actions, great power rivalry, UNSC and WTO paralysis, and the rise of minilateral groupings like QUAD and AUKUS, shifting the world from a rule-based order to power-driven geopolitics.
• India is adapting through assertive multi-alignment, supply chain diversification, technological sovereignty, and Global South leadership, aiming to emerge as a stabilising “Third Pole” while managing challenges from China, trade coercion, and regional instability.

What are the Key Facets of the Emerging World Order?

• Rise of Unilateralism and "Great Power" Rivalry:
  • US "Isolationism": Significant actions like the US withdrawal from the World Health Organization (WHO), the Paris Climate Agreement, and the UN Human Rights Council have weakened these institutions.
    • The United States, once one of the largest funders of the United Nations, has withdrawn from 31 UN institutions, reflecting its declining engagement with multilateral processes.
  • Strategic Coercion: India warned against the strategic use of economic coercion, including tariff volatility and coercive supply-chain practices by major powers, as undermining trust in the international system and hurting the Global South’s autonomy.
    • For example, the US has used tariff threats to influence India's energy trade with Russia.
    • Major economies have shifted toward "America First" or "China First" policies, employing unilateral tariffs and trade barriers that bypass multilateral trade norms.
• Institutional Paralysis:
  • UNSC Deadlock: The United Nations Security Council (UNSC) often fails to act on global conflicts (like those in Ukraine or Gaza) because of the veto power held by its permanent members. 
    • There is a growing demand for reforms to include rising powers like India and regions like Africa.
  • WTO Crisis: The World Trade Organization (WTO) is facing a crisis because its dispute settlement mechanism (the Appellate Body) has been blocked, preventing countries from resolving trade wars through legal channels.
    • Countries are increasingly using "National Security" as a reason to impose tariffs, which undermines the free trade principles of the WTO.
• Rise of China: Since 2010, China has created alternative economic and security architectures (e.g., BRI, NDB, RCEP), challenging the Western-led "rules-based order." 
  • China now leads four of the 15 UN specialized agencies, and its aid volumes exceed those of the West. 
• Minilateralism over Multilateralism: Instead of large, universal organizations (Multilateralism), countries are moving toward smaller, targeted groups known as Plurilateral or Minilateral forums.
  • Preferential and functional groupings like QUAD, AUKUS, and I2U2 are increasingly replacing universal platforms for strategic and security coordination.
  • Trade is shifting toward regional and plurilateral agreements such as Regional Comprehensive Economic Partnership,  and bilateral Free Trade Agreements (FTAs), reflecting a move away from universal multilateral trade governance under the WTO.
• Failure of the "Post-War Vision": The original 1945 vision of the UN (based on equality, non-aggression, and self-determination) is being tested by reality as conflicts like Russia’s invasion of Ukraine expose the limits of collective security.
  • The gap between the "Rule of Law" (international treaties) and the "Rule of Power" (military and economic might) has widened significantly.
• Weaponisation of Interdependence: Control over supply chains, financial networks (SWIFT), semiconductors, energy flows, and sanctions regimes allows major powers to coerce adversaries without kinetic warfare.

How has India’s Foreign Policy Evolved in Changing Global Order?

• Idealism and Non-Alignment (1947–1964): In the early years, India adopted non-alignment to avoid joining Cold War blocs while preserving sovereignty. 
  • Guided by Panchsheel and Afro-Asian solidarity, India focused on "Universalism of the Weak," advocating for decolonization and disarmament.
  • However, the 1962 Sino-Indian War exposed limitations of idealism and highlighted the need for stronger defence and strategic planning.
• Security and Power Balancing (1964–1991): India moved toward realism, prioritising national security and regional stability. 
  • The 1971 Indo-Soviet Treaty and support for Bangladesh’s liberation reflected strategic alignment for security interests. 
  • India’s 1974 nuclear test (Pokhran-I) signalled technological capability and deterrence, marking a clear shift from moral politics to power-based diplomacy.
• Economic Diplomacy (1991–2000): Following the collapse of the Soviet Union in 1991, and the end of the Cold War and economic crisis led India to adopt economic diplomacy. 
  • The 1991 LPG reforms integrated India into the global economy, while the Look East Policy strengthened ties with Southeast Asia. 
  • Establishing relations with Israel and conducting the 1998 nuclear tests demonstrated India’s pursuit of strategic and economic autonomy.
• Multi-Alignment (2000–2014): The India–US Civil Nuclear Deal (2008), engagement with ASEAN, and participation in BRICS and G20 reflected India’s emergence as a global stakeholder. 
  • Energy security, diaspora engagement, and trade partnerships became central to foreign policy.
• Assertive Multi-Vector Diplomacy (2014–Present): India has adopted a more assertive and multi-vector approach. "Strategic Autonomy" is used as a rationalization tool for issue-based choices:
  • The Dual Balancing Act: India’s participation in the US -led Quad (2017) while simultaneously purchasing the Russian S-400 system (2018) exemplifies its strategy of balancing partnerships to preserve strategic autonomy.
  • De-hyphenated Diplomacy: India has moved away from viewing relationships through binary lenses (e.g., US–Russia or Israel–Palestine), engaging each country on its own merits.
  • From "Voice" to "Leader" of the Global South: India has institutionalized its leadership through platforms like the Voice of Global South Summit and by inducting the African Union into the G20 during its 2023 presidency.
  • Strategic Minilateralism: Moving away from bulky, slow multilateralism (like the UN) toward agile, issue-based groups like QUAD (security/tech), I2U2, and the International Solar Alliance (ISA).
  • Technological Sovereignty: India is now setting global standards in Digital Public Infrastructure (DPI) and pushing for ethical AI Governance (e.g., the 2026 AI Impact Summit in New Delhi).
  • Vishwa Bandhu (Friend of the World): Positioning itself as a stabilizer or "bridge" between the polarized West and the Global South.
    • Transitioning from a "balancing power" to an independent center of global power (a "Third Pole").

What are the Challenges to India’s Foreign Policy in Changing Global Order?

• "Transactional" Trade Challenge: The shift from multilateralism to asymmetric relations has turned trade into a tool of political coercion.
  • Unlike the EU trade agreement, which uses phased reciprocal reductions, the India–US Interim Trade Agreement demands "concessions first," unilaterally deciding on tariff relief only after India doubles industrial imports or adjusts its strategic ties.
• Expectation–Responsibility Gap: India’s ambition to become a major power brings with it heightened global expectations to take definitive stands on pressing international issues. 
  • Sustaining credibility and influence in the emerging world order will require India to balance strategic autonomy with greater normative and strategic clarity.
• Persistent China Challenge:
  • Border Tensions: Despite ongoing dialogues, over 60,000 troops remain deployed along the Line of Actual Control (LAC). Tactical disengagements have not resolved the fundamental trust deficit.
  • Economic Asymmetry: India remains heavily dependent on Chinese imports for critical sectors like pharmaceuticals and electronics.
    • China has previously weaponized these supply chains, such as the 2025 halt on rare earth magnet exports.
  • Maritime Encirclement: China's expanding naval footprint in the Indian Ocean Region (IOR) and its investments through the Belt and Road Initiative (BRI) challenge India's traditional role as the region's net security provider.
• Neighbourhood Volatility: India's "Neighbourhood First" policy is facing its toughest test in a decade.
  • The "Iron-Clad" Alliance: The emboldened stance of Pakistan (following Operation Sindoor) and its interests to strengthen mutual defense ties with a volatile Bangladesh can increase the friction between India and Pakistan.
  • Regional Encirclement: From the Maldives to Myanmar, China’s "investment-led diplomacy" often outpaces India’s project delivery, leaving New Delhi struggling to maintain its traditional sphere of influence.
• Technology & Energy Sovereignty Gap: Power in 2026 is defined by control over chips and AI and energy transition.
  • Critical Mineral Dependency: China’s leverage over rare earths (essential for India’s missile and aerospace programs) is a major vulnerability.
  • Digital Vulnerability: India leads in DPI but remains a "malware detection" hotspot and depends on Western platforms for core AI development.

How Should India Reframing its foreign Policy in Changing Global Order?

• Pursuing Viksit Bharat 2047: India must replace the outdated doctrine of 'strategic autonomy' with a purpose-driven foreign policy explicitly aligned with the economic transformation goals of 'Viksit Bharat 2047'.
• De-risking Supply Chains: India currently imports a massive share of critical components (electronics, APIs) from China. 
  • Foreign policy should prioritise friend-shoring through initiatives like the Supply Chain Resilience Initiative (SCRI) and expand partnerships such as the Pax Silica Initiative to build resilient semiconductor and technology value chains.
• Building Endogenous Capabilities: Taking a cue from the US and China in the early 1900s, India should maintain a low international profile and focus entirely on developing its domestic technological and industrial capabilities to become a 'cyber superpower'.
  • India can reframe its foreign policy around its young, tech-driven workforce to emerge as a cyber and AI power. Securing critical minerals and forging partnerships in AI, semiconductors, and quantum technologies will help India become a rule-maker in the digital age.
• Aggressive Trade Diversification: Vulnerabilities in the US bilateral relationship make it imperative for India to prioritize trade diplomacy. India must aggressively diversify its exports and pursue Free Trade Agreements (FTAs) with Asia and Africa.
  • Instead of trying to match China's massive "chequebook diplomacy" (BRI) dollar-for-dollar, India should focus on exporting its proven DPI to Africa and Southeast Asia, creating an ecosystem of trust and shared growth.
• Maintaining the Russia Link: Despite Western pressure, maintaining functional defense and energy ties with Russia is crucial to prevent Moscow from becoming entirely subservient to Beijing.
• Reframing Neighborhood Relations: Relations with Pakistan should be treated as a pragmatic foreign policy issue rather than purely a security challenge.
  • Economic incentives, such as a new water-sharing arrangement, a trade agreement, or the revival of the Iran-Pakistan-India pipeline, could stabilize the region.
• Repositioning BRICS: As the chair of BRICS, India has the opportunity to shift the bloc away from being a political multilateral body and reposition it as an economic cooperation community, starting with initiatives like linking official digital currencies for smoother cross-border trade.

Conclusion

The erosion of multilateralism is not merely a crisis but an opportunity for India to shed its "reactive realism" and adopt a "purposeful narrative." By focusing on domestic strength and flexible, interest-based alignments, India can safeguard its strategic space and emerge as a stabilizer in a fragmented world.

Drishti Mains Question:

Q. "In a fragmented global order, India’s 'Strategic Autonomy' is less about non-alignment and more about calibrated multi-alignment." Discuss.

Frequently Asked Questions (FAQs)

1. Why is multilateralism weakening globally?
Rising unilateralism, great power rivalry, UNSC veto deadlocks, WTO dispute paralysis, and the shift toward minilateral groupings are undermining multilateral institutions.

2. What is minilateralism and why is it rising?
Minilateralism refers to small, issue-based coalitions like QUAD and I2U2 that enable faster decision-making and strategic coordination compared to large multilateral bodies.

3. How has India’s foreign policy evolved in response to global changes?
India has moved from non-alignment to multi-alignment and assertive strategic autonomy, balancing partnerships with the US, Russia, and Global South leadership.

4. What are the major challenges for India in the new world order?
China’s strategic assertiveness, trade coercion, supply chain dependence, neighbourhood instability, and technological vulnerabilities pose key challenges.

5. How can India strengthen its position in the changing global order?
By diversifying trade, securing supply chains, building domestic tech capacity, leading the Global South, and leveraging minilateral platforms for strategic influence.

UPSC Civil Services Examination Previous Year Question (PYQ)  

Prelims

Q. With reference to the United Nations General Assembly, consider the following statements: (2022)

1. The UN General Assembly can grant observer status to non-member States. 
2. Inter-governmental organisations can seek observer status in the UN General Assembly.
3. Permanent Observers in the UN General Assembly can maintain missions at the UN  headquarters.

Which of the statements given above are correct?

(a) 1 and 2 only 
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3 

Ans: (d)

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Q. Consider the following statements: (2019) 

1. The United Nations Convention against Corruption (UNCAC) has a ‘Protocol against the Smuggling of Migrants by Land, Sea and Air’. 
2. The UNCAC is the ever-first legally binding global anti-corruption instrument. 
3. A highlight of the United Nations Convention against Transnational Organized Crime (UNTOC) is the inclusion of a specific chapter aimed at returning assets to their rightful owners from whom they had been taken illicitly. 
4. The United Nations Office on Drugs and Crime (UNODC) is mandated by its member States to assist in the implementation of both UNCAC and UNTOC. 

Which of the statements given above are correct? 

(a) 1 and 3 only 
(b) 2, 3 and 4 only 
(c) 2 and 4 only
(d) 1, 2, 3 and 4 

Ans: (c)

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Mains

Q. Critically examine the role of WHO in providing global health security during the COVID-19 pandemic. (2020)

Q. What are the main functions of the United Nations Economic and Social Council (ECOSOC)? Explain different functional commissions attached to it. (2017)