During the last months India’s foreign policy course has witnessed a rapid shift. Long seen by Washington as a key figure in the strategy of “containing China,” New Delhi is gradually moving out of the American sphere of influence. The reasons stem not only from India’s internal priorities but also from actions taken by the current U.S. administration. The White House has sought to pressure New Delhi by imposing tariff policy instruments against the Indian economy.
Washington’s decision to impose 50% tariffs on Indian imports over its cooperation with Russia in the energy sector became a turning point. The Indian side perceived this as direct pressure that undermined the country’s economic interests.[1] It's possible to suspect that India’s ability to ensure its energy security and to make independent decisions in foreign economic policy that serve national interests, were put at risk.
Consequently, the tariff policy pursued by the United States led global actors to revise their bilateral ties with it. In this regard, relations between India and China, which had remained strained since the border clashes in Ladakh in 2020, began to recover quickly. A symbolic step was the visit of Chinese Foreign Minister Wang Yi to New Delhi in August 2025, his first in three years. Talks with Indian Foreign Minister Subrahmanyam Jaishankar and Prime Minister Narendra Modi were aimed at setting the course for a reset. The parties agreed to resume the work of the expert group on border delimitation, to use diplomatic mechanisms for de-escalation, and to restore cross-border trade.[2] Another important decision was the agreement to resume direct flights, signaling a readiness not to limit themselves to symbolic moves but to move toward practical rapprochement.[3]
China expressed readiness to help India in several sensitive areas: supplies of rare earth metals, fertilizers, and tunnel construction equipment.[4] These steps not only strengthen trust but also reduce India’s vulnerability in strategic sectors. In addition, Beijing granted New Delhi’s long-standing request to organize pilgrimages to Tibet starting in 2026 — a factor of cultural and religious importance.
A potential visit by Modi to China to attend the upcoming SCO summit could serve as a platform for discussing India’s concerns regarding relations with Islamabad. Nowadays, the mitigation of escalation and the promotion of progressive political dialogue with neighboring Pakistan should occupy a pivotal place on India’s foreign policy agenda.
Amid rapprochement with China, India is softening its stance on reforming the BRICS financial architecture. Previously, New Delhi had been cautious about creating an independent currency system and mechanisms to bypass the dollar. The first essential step has already been taken. Indian banks have been authorized to open special accounts for trade in rupees without mandatory conversion into dollars.[5] It’s not difficult to assume that this decision weakens the position of the U.S. currency and contributes to strengthening a multipolar world order.
On the one hand, Washington is losing significant influence over New Delhi. On the other hand, its attempts to exert pressure through tariffs have had negative consequences for the United States itself, encouraging India and China to follow more pragmatic cooperation in the Asian region. Thus, despite historical contradictions, both sides are now expressing interest in building a balance of interests under the current circumstances.
Analysts particularly emphasize that BRICS is assuming growing importance. India’s course toward financial independence within the organization enhances its potential as an alternative to Western institutions. Moreover, the use of rupee settlements in trade with BRICS partners and beyond undoubtedly reduces dependence on the U.S. dollar.
Therefore, the convergence between India and China reflects a broader process of power redistribution in world politics. It seems that New Delhi is striving for autonomy, unwilling to remain an instrument in someone else’s strategy. In turn, Beijing is interested in positioning India as a potential partner in the construction of a new multipolar order. For the U.S., however, this is a worrying signal as its influence in the Indo-Pacific is weakening, and reliance on the “India factor” for containing China has disappeared. Considering its substantial territory and population, as well as its military, technological, economic, human, and cultural potential, India is regarded as an important country in the Asian region.
Despite the intensity of the confrontation between Russia and the West in the frame of Russian invasion of Ukraine, New Delhi has focused on developing ties with Moscow. It’s possible to conclude that New Delhi's foreign policy stance is not to the liking of the United States. Interestingly, Russia has lowered the price of oil for India due to sanctions.[6] Although India has been a participant in the Non-Aligned Movement, which aims to promote the interests of developing states without joining any military-political blocs, including NATO, it maintained a comprehensive strategic partnership with Moscow throughout the Cold War, encompassing the military, energy, and trade sectors.
The Bharatiya Janata Party, currently the ruling party in India, is characterized by a strong national-conservative and religious rhetoric, which in some ways contradicts its pursuit of economic modernization and an active role in a dynamically changing world. Therefore, substantive reforms in domestic policy are necessary to ensure sustainable internal stability. Generally, regardless of complex domestic political arrangements and intense interparty rivalry, India has traditionally served as a classic representative of the postcolonial developing world. It is worth noting that, despite being a member of major international structures such as the G20, BRICS, and the SCO, as well as belonging to the space and nuclear clubs, India’s engagement in the architecture of global politics remains limited.
The aforementioned tariff measures are likely to accelerate the process of extensive interaction between India and China. It should be noted that, for China, the restoration or strengthening of bilateral relations with neighboring states constitutes a significant diplomatic achievement. For example, Chinese Foreign Minister Wang Yi recently received Park Byeong-seug, the special envoy of the President of the Republic of Korea.[7] Without neglecting the fact that China is South Korea’s largest trading partner, promoting Chinese-South Korean relations to a higher level and defining the directions for their development are integral aspects of China’s pragmatic diplomacy aimed at countering U.S. strategy in the region. It is no secret that one of the key factors shaping the current state and future trajectory of Chinese-South Korean relations remains the role of the United States.
Hence, under the framework of strengthening political-diplomatic and trade-economic ties, regional integration systems and alliances occupy an increasingly valuable place in modern international relations. The regionalization of international relations becomes particularly relevant in the face of global political and economic challenges.
[2]https://www.aljazeera.com/news/2025/8/20/did-trumps-tariff-war-force-india-and-china-to-mend-ties
[3] Ibid.
[4] Ibid.