A year of dissipating promises for Indian foreign policy, Pg8

Key Highlights:

• In 2025, Indian foreign policy faced challenges across economic, energy, global strategic, and regional security.
• U.S. tariffs on Indian goods and surcharges on Russian oil imports strained India-U.S. relations.
• Despite symbolic gestures, India-China relations remained tense due to border security concerns.
• A terror attack in Pahalgam and subsequent retaliatory operation highlighted regional security challenges.
• Political instability in neighboring countries like Bangladesh and Nepal added to India's foreign policy concerns.

Detailed Insights:

• Initial expectations of strengthened U.S. ties were dashed by tariff disputes and immigration restrictions.
• While FTAs were signed with the U.K., Oman, and New Zealand, major deals with the U.S. and EU remain pending.
• Despite high-level meetings, China did not provide fundamental security guarantees along the LAC.
• India faced pressure to reduce Russian oil imports due to potential U.S. sanctions, impacting energy security.
• The U.S. National Security Strategy showed a softened stance on China and Russia, creating uncertainty for India.
• The Pahalgam terror attack exposed vulnerabilities despite security crackdowns in Jammu and Kashmir.
• India's retaliatory operation faced diplomatic setbacks with limited international support.
• A Saudi-Pakistan mutual defence pact further complicated India's regional security calculus.
• Political transitions in Bangladesh and Nepal present new challenges for India's neighborhood policy.
• India needs to avoid blaming external factors and address its own inconsistencies in foreign policy.

Key Concepts Involved:

• Bilateral Trade Agreement (BTA): An agreement between two countries to reduce trade barriers.
• Line of Actual Control (LAC): The de facto border between India and China.
• Generalized System of Preferences (GSP): A preferential tariff system that provides tariff reductions on imports from developing countries.