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As multilateralism erodes, India must reframe its foreign policy


What Happened

  • A major policy analysis argues that multilateral structures are withering as power politics reshape the world order, requiring India to reframe its foreign policy beyond the traditional "strategic autonomy" framework.
  • The World Trade Organization stands paralysed, tech wars and tariffs are escalating, and protectionism has returned as major economies erect trade barriers.
  • The analysis recommends India build domestic capabilities, diversify trade partnerships, and pursue the Viksit Bharat 2047 vision as an organising principle for foreign economic policy.
  • The erosion of multilateralism is driven by the US strategic retreat from international institutions, China's assertiveness, and the rise of interest-driven mini-lateral groupings.
  • India's traditional multi-alignment approach faces new pressures as established rules-based frameworks lose effectiveness.

Static Topic Bridges

Strategic Autonomy: Evolution and Challenges

India's foreign policy doctrine of strategic autonomy has evolved from Nehruvian non-alignment through the Cold War to post-1991 multi-alignment. Strategic autonomy refers to India's ability to make independent foreign policy decisions without being subordinate to any power bloc, while engaging pragmatically with all major powers.

  • Non-alignment during the Cold War aimed to preserve independence from both the US and Soviet blocs.
  • Post-1991, India shifted toward "multi-alignment," maintaining partnerships with the US, Russia, and others simultaneously.
  • Strategic autonomy has been tested by the Russia-Ukraine conflict (India's refusal to condemn Russia while deepening ties with the West) and US pressure on technology and trade issues.
  • Critics argue that strategic autonomy has become reactive rather than proactive, focusing on avoiding commitments rather than shaping outcomes.

Connection to this news: The analysis argues that in a world where multilateral rules are collapsing, mere "autonomy" is insufficient; India needs a positive, capability-driven agenda that shapes the emerging order rather than simply navigating it.

Rise of Minilateralism: QUAD, I2U2, BRICS+

As traditional multilateral institutions (WTO, UN system) face gridlock, issue-specific minilateral groupings have emerged as the preferred vehicles for international cooperation. India participates in several such groupings that operate outside the formal multilateral architecture.

  • QUAD (India, US, Japan, Australia): Focuses on Indo-Pacific security, technology cooperation, vaccine supply chains, and maritime domain awareness.
  • I2U2 (India, Israel, UAE, US): Focuses on food security, energy, water, transportation, and technology.
  • BRICS+ (expanded in 2024 to include Egypt, Ethiopia, Iran, Saudi Arabia, UAE): A platform for emerging economies to coordinate on trade, development finance, and reform of global institutions.
  • BIMSTEC has risen over SAARC due to Pakistan-related political blockages in the latter.
  • These groupings offer flexibility and speed but lack the legal frameworks and enforcement mechanisms of formal multilateral institutions.

Connection to this news: The proliferation of minilateral platforms reflects the very erosion of multilateralism the analysis describes, with India positioned at the intersection of multiple such groupings but needing a coherent strategy to leverage them effectively.

Viksit Bharat 2047 and Foreign Economic Policy

The Viksit Bharat (Developed India) 2047 vision aims to transform India into a developed country by the centenary of independence. Achieving this target requires sustained GDP growth of 8-9% per annum, taking the economy to an estimated $30 trillion. Foreign policy is increasingly viewed as an enabler of this domestic economic ambition.

  • India's GDP was approximately $3.7 trillion in 2025; reaching $30 trillion by 2047 requires a sustained high-growth trajectory.
  • Trade diversification is critical: India's merchandise exports remain concentrated, and supply chain resilience requires new partnerships beyond traditional Western markets.
  • India is pursuing free trade agreements (FTAs) with the EU, UK, and GCC to diversify market access.
  • The Critical Minerals Alliance, semiconductor supply chain partnerships, and green energy transitions are areas where foreign policy and economic security converge.
  • Protectionism by major economies (US tariffs, EU Carbon Border Adjustment Mechanism) poses risks to India's export-led growth ambitions.

Connection to this news: The argument that India's foreign policy must be reframed around the Viksit Bharat 2047 goal reflects a growing consensus that economic diplomacy, trade diversification, and capability building must become the central pillars of India's external engagement strategy.

Key Facts & Data

  • The WTO's dispute settlement mechanism has been paralysed since 2019 due to the US blocking Appellate Body appointments.
  • India participates in QUAD, I2U2, BRICS+, BIMSTEC, SCO, and G20, among other groupings.
  • India's GDP target under Viksit Bharat 2047: $30 trillion (from approximately $3.7 trillion in 2025).
  • India is negotiating FTAs with the EU, UK, and GCC bloc.
  • BRICS expanded from 5 to 10 members in January 2024.
  • India's trade-to-GDP ratio stands at approximately 48%, reflecting significant but untapped trade potential.
  • The US has imposed reciprocal tariffs on major trading partners, including India, in 2025-2026.