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ECFR Newsletter Updates: Your Weekly Round-Up

by Priya Shah – Business Editor

India Navigates US-China Tensions⁣ with Multi-Aligned Foreign‌ Policy

New‌ Delhi -⁣ As the United States and ⁣China increasingly vie for global ‍influence,⁣ India is pursuing a strategy of “hedging diplomacy,” deepening partnerships ⁢with multiple powers​ – including the US, ⁣Russia,​ and the ‍European Union – to‍ safeguard ‍its ⁣strategic autonomy and economic interests. This ​approach, solidified during the Trump administration ⁢and continuing under President ‌Biden, reflects a calculated effort to avoid ⁣becoming overly reliant on any single nation amidst a shifting ⁤geopolitical landscape.

India’s foreign⁤ policy ⁣shift isn’t a sudden⁢ departure, but an acceleration of a long-held‌ tradition of non-alignment, adapted for a 21st-century world characterized by great power ⁤competition.The Trump ⁢era, marked by unpredictable‌ US ​policies and trade wars, underscored the risks of overdependence. New Delhi‍ responded by proactively diversifying its strategic⁤ options, ‌recognizing⁢ that ⁤its growing economic and security needs require a broader network ‌of partners. This strategy aims to maximize benefits⁣ while minimizing ⁤vulnerabilities ⁤in a world where the US-China relationship is increasingly defined by strategic rivalry.

The core​ of India’s hedging strategy lies in simultaneously strengthening ties with Washington while maintaining robust relations with Moscow.⁤ Despite US concerns over India’s continued purchase of Russian arms -⁣ including the S-400⁢ missile system – New Delhi views ⁢Russia as a⁤ crucial defence partner, particularly for legacy military equipment and technology transfer. ‍ This relationship dates ⁢back⁢ to the Cold War and remains⁢ vital for India’s defense modernization. Simultaneously,India has dramatically expanded security ​cooperation with the US,becoming a​ key member of the Quadrilateral Security Dialog (Quad) alongside the US,Japan,and Australia.The⁤ Quad, initially conceived ‍in ⁣2007, has gained renewed ​prominence as a platform for‌ coordinating⁤ responses ‍to China’s growing assertiveness‌ in the Indo-Pacific region.

Economically, India ⁢is actively pursuing diversified trade relationships. While trade with the US has increased, India⁣ is also strengthening economic ties with‌ the European‍ Union, Japan, ⁣and ASEAN countries. The pursuit of free ​trade⁢ agreements with these partners is a⁣ key component of this strategy, aiming ⁢to reduce ‌dependence on any single⁤ market. ⁣Furthermore, India’s participation in initiatives like the Indo-Pacific Economic ‌Framework for Prosperity (IPEF), led by the US, demonstrates‍ its commitment to a rules-based international order while simultaneously exploring choice economic partnerships.

Analysts​ suggest India’s approach is driven by a ⁢pragmatic assessment of its national ⁣interests. “India is ⁢not looking to contain China, but it is determined to‍ manage the risks associated with ‌China’s rise,” explains Dr. ⁤Rajesh ​Rajagopalan, Professor of International⁣ Political Economy and Governance at Jawaharlal⁢ Nehru University. “hedging allows India to benefit from both ‍US and Chinese⁤ economic​ engagement while preserving its strategic autonomy.”

The long-term success of India’s hedging diplomacy will‍ depend on its ability to navigate the complex dynamics ⁢of US-China relations and ​maintain a delicate⁤ balance between competing interests. As geopolitical​ tensions continue to ⁣escalate, India’s ⁣multi-aligned⁢ foreign policy is likely to remain a defining feature of its approach to the international stage.

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