India skillfully handled its foreign policy in 2025, interacting with powerful nations while defending its interests in the face of trade difficulties and geopolitical unrest. Learn how New Delhi negotiated the challenges of 2025 and established itself on the international scene through trade agreements and strategic travel.
In 2025, which is almost over, New Delhi managed a period of extreme volatility due to aggressive US trade tariffs and geopolitical uncertainties in the region and West Asia.
In these conditions, the year proved to be a test of New Delhi's capacity to strike a balance between strategic independence and growing demands for global leadership.
In 2025, India's foreign policy demonstrated prudence, adaptability, and strategic involvement as New Delhi handled neighborhood unrest, resolved trade issues, and fortified relations with major powers.
This is a summary of India's foreign policy performance in 2025.
Prime Minister Narendra Modi ended the year with a three-nation tour to Jordan, Ethiopia and Oman earlier this month. The visit was consistent with New Delhi's attempt to strengthen India's strategic position in the Horn of Africa and West Asia.
"Well-calibrated outreach"
Aside from international travel, India's most significant diplomatic achievements were a well-timed approach to Afghanistan and a significant reestablishment of relations with Canada.
In terms of the neighborhood, India-Bangladesh ties declined in the end of 2025, months after a military conflict with Pakistan following the terror attack in Pahalgam. India is working to strengthen its relationship with China, a significant neighbor.
The Israel-Gaza conflict, the Russia-Ukraine war, and the attempts to put an end to them all contributed to the instability of the world order.
Tariffs, Trade, and Economic Diplomacy
India was subject to severe tariffs from the US of up to 50%. New Delhi maintained its position and stepped up efforts to expedite free trade deals with other nations.
New Delhi moved forward with important free trade agreements with other countries, including the UK, the European Free Trade Association, or EFTA, and the most recent one with New Zealand, while negotiations for a trade deal between the US and India are in progress.
Experts noted how New Delhi prioritized expanding economic ties with allies in Asia, Africa, and Latin America, expanding export markets, and pushing talks with the European Union.
Under its drive for self-reliance, New Delhi persisted in concentrating on safeguarding essential industries and local production. As part of the Comprehensive Economic Partnership Agreement (CEPA), Oman, one of the nations PM Modi visited in December, gave India zero-duty access on 98% of its tariff lines at the end of the year.
India increased its defense, technological, and security cooperation with the United States and its Quad allies, but it also engaged Russia, especially in energy and defense supplies, which were major topics of discussion during Russian President Vladimir Putin's recent visit to India.
China-India, Pakistan-India relations
Since the two countries engaged on disengagement along the LAC, relations between China and India have been steady for more than a year.
However, since Sheikh Hasina's removal on August 5, 2024, New Delhi's relations with Dhaka have deteriorated. The relationship deteriorated due to recent events at the envoy level.
Following the April 22 terror attack in Pahalgam, Jammu and Kashmir, which claimed 26 lives, India and Pakistan engaged in a four-day military conflict in May. India dubbed its retail initiative "Operation Sindoor."
Subsequently, India dispatched seven delegations comprising 59 MPs, former ministers, and diplomats in charge of bolstering India's image abroad.
The goal of the Operation Sindoor outreach is to refute Pakistan's propaganda and mobilize international support for the isolation of state-sponsored terrorism.
The conflict between Israel and Gaza
In 2025, Israel persisted in its onslaught in Gaza. The June war between Iran and Israel further exacerbated matters. India's regional connectivity strategy, including the Chabahar port, the International North South Transport Corridor, and the India-Middle East-Europe Economic Corridor, would be affected by the uncertainties.
However, by year's end, US President Donald Trump had developed a peace strategy that appeared to have reduced hostilities. Prime Minister Narendra Modi applauded the Israel-Hamas accord on the initial stage of Trump's Gaza peace proposal in October.
However, PM Modi commended Benjamin Netanyahu, stating that the deal demonstrated the Israeli prime minister's strong leadership while simultaneously wishing for a break for the Gaza population and opening the door to long-term peace.
South Asia's political upheavals, economic strain, and security issues required ongoing diplomatic attention. As a result, India's Neighbourhood First strategy was challenged.
While being wary of internal political changes and border sensitivities that might jeopardize regional stability, India continues to provide humanitarian relief, development assistance, and connection projects to its neighbors.
Emphasis on the Global South
India also increased its interaction with the Global South during the year, presenting itself as a major supporter of developing countries. New Delhi asked for more equitable frameworks for climate action at multilateral forums, emphasized debt distress, and pushed for reforms in international financial institutions.
A consensus statement on the climate issue, debt relief for developing countries, and global inequality was adopted during the G20 Leaders' Summit in November, which was hosted by South Africa.
In his speech, Prime Minister Modi emphasized the growing threat posed by drugs, particularly fentanyl, and called for a G20 Initiative on Countering the Drug–Terror Nexus. He also emphasized the necessity of destroying the "wretched economy" that supports both the drug trade and terrorism.
The challenges of regional security in 2025 led to an increase in intelligence collaboration and defense partnerships. With collaboration in semiconductors, artificial intelligence, and digital public infrastructure becoming increasingly important, technology has become a strategic pillar.
The goal of climate diplomacy was to strike a balance between international commitments and developmental demands, particularly with regard to energy transition and climate finance. For instance, Union Environment Minister Bhupender Yadav described the recent UN COP30 climate meeting as a major turning point in the advancement of equity and climate justice in November of this year.
The Path Ahead
In the end, India's foreign policy represented a nation negotiating a complicated and unpredictable globe. It was obvious that New Delhi wanted to lead without going too far, prosper without becoming overly dependent, and influence without being aligned.
India's 2025 strategy highlights how New Delhi is presenting itself as a self-assured yet cautious force in the face of global uncertainty. According to experts, New Delhi is committed to safeguarding its interests while influencing the changing global order.
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