INDIA’S ENGAGEMENT WITH WEST: EVOLUTION, CHALLENGES AND WAY FORWARD

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Context

The foreign policy of India has shifted from traditional non-alignment to a dynamic, multi-aligned approach that seeks closer ties with Western countries, particularly the United States and Europe.

India Relation with Western Countries

'The West,' includes the USA, EU, UK, Canada, and Australia, refers to a group of economically advanced, with historical, cultural, and political connections. These nations favor market economies, democratic systems, and individual liberties.

Economic Influence: The US has the world's largest economy, with a 2025 GDP of over $30 trillion.

• In 2024, the G7 countries, including Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, plus the EU, accounted for over 44% of the world's nominal GDP.

Democratic Governance: All functions under democratic systems, supporting representative government and political freedom.   

Shared History & Alliances: Many share a history as former British colonies, resulted similarity in legal and political systems.

• These nations participate in alliances such as NATO and the Five Eyes intelligence-sharing network.
• The AUKUS security pact, a partnership between Australia, the UK, and the US, focuses on developing advanced defense capabilities, including nuclear-powered submarines.

Evolution of India's relationship with Western countries

Cold war era(1947-1991)

Policy of non-alignment: India refused to formally ally with either the US-led Western bloc or the Soviet-led Eastern bloc, to preserve its sovereignty and decisional autonomy in foreign affairs.

Engagement with the US: Relations with the US were strained due to conflicting ideologies and US alliances with Pakistan. However, India received economic and food aid from the US.

Engagement with European nations: India maintained friendly relations with European nations, such as the UK and France, engaging in defense cooperation and receiving development assistance.

• France adopted a balanced approach, supporting India's non-aligned stance and providing technology and assistance in sectors like energy and infrastructure. 

Post-cold war transformation (1990s onwards)

Economic Liberalization (1991): India's economic reforms opened up its economy, increasing foreign direct investment from Western countries. FDI inflows from Western countries rose significantly after liberalization, reaching $5.3 billion by 2000.

Deepening Bilateral Ties: Key moments like the 2005 US-India Civil Nuclear Agreement signaled a shift towards a closer partnership. 

Strategic Dialogue and Cooperation: High-level dialogues and ministerial meetings have developed stronger bilateral relations.

• India's engagement in initiatives like the Quad with the US, Japan, and Australia, and the India-EU Trade and Technology Council (TTC), highlight a shift towards multi-alignment.  

Strategic Autonomy and Multi-Alignment: India's current foreign policy underlines strategic autonomy and a multi-aligned approach.

• Making independent decisions based on national interests while promoting partnerships with various global players to maximize benefits. 
• For example: India also has maintained relationship with Russia, its traditional defense partner.  

Key Pillars of Current Engagement

Economic cooperation

• The US serves as India's largest trading partner, achieving $131.84 billion in bilateral trade during FY 2024-25.  
• The EU is India's second-largest trading partner, with trade in goods reaching €120 billion in 2024.  
• India received Foreign direct investment (FDI) inflows of $81.04 billion in FY 2024–25.
  • The US accounted for 11% of total FDI equity inflows in FY 2024-25, making it the third-largest source country.
• Technology transfers play a key role, such as the Lockheed Martin-Tata Advanced Systems Limited partnership to establish a Maintenance, Repair, and Overhaul (MRO) facility for the C-130J Super Hercules aircraft in India.
• India and the UK signed a Comprehensive Economic and Trade Agreement (CETA) in July 2025, which provides duty-free access for 99% of India's exports to the UK and aims to double bilateral trade to $120 billion by 2030.
  • India also discusses a bilateral trade agreement with the US. 
• Initiatives like iCET (2023) deepen collaboration in AI, semiconductors, and defense co-production.

Strategic alignment

• India collaborates with the West to balance China's influence.
• The Quad, comprising India, the US, Australia, and Japan, promotes a free and open Indo-Pacific. They recently held their Foreign Ministers' Meeting in Washington D.C., launching initiatives to enhance maritime security and cooperation.
• Joint exercises like "Malabar" and "Yudh Abhyas" enhance interoperability.
• Defense ties strengthen with India purchasing $20 billion in US military equipment, including Apache helicopters, since 2010.
• A US-India Defense Cooperation Agreement in 2023 facilitated technology sharing like GE's jet engine production in India.
• India's position in West Asia, over 9 million Indian workers and sourcing 60% of its oil imports from the region, aligns with Western interests.
• A June 2023 roadmap between the US and India targets defense industrial cooperation, including potential jet engine co-production.

Democratic values

• Shared democratic principles solidify relations. India's dynamic democracy, demonstrated by the participation of 64.64 crore voters in the 2024 general elections.
• Joint initiatives like the U.S.-India Global Democracy Initiative promote governance and human rights. However, Western criticism of India's domestic policies, such as the Citizenship Amendment Act (CAA), causes friction, as India counter this as interference. 
• Over 5 million Indians reside in the US, 1.8 million in the UK, and 1.6 million in Canada, promoting strong cultural and economic links.

India’s Western relations face several obstacles

Geopolitical tensions: India’s purchase of Russian oil, draws Western criticism amid sanctions over the Ukraine war.  

• India prioritizes national interests over absolute alignment. It continues purchasing discounted Russian crude oil; Russia became India's top supplier in FY 2023-24, accounting for over 35% of imports.  

Trade disputes: Protectionist policies lead to conflict. The US imposed a 25% tariff on Indian goods in August 2025, impacting $2 billion in trade.

• Despite growing trade, challenges persist in FTA negotiations with the UK and EU, including tariffs and market access for agriculture and services.

Domestic policy criticism: West critiques India’s internal policies, including hate speech against minorities, internet shutdowns, which restrict trade and raise human rights concerns.

• India's press freedom ranking is 151st in 2025, raising concerns. Diplomatic rows, like Canada's allegations of Indian involvement in a Sikh activist’s killing in 2023, escalate tensions. 

China’s influence: India's rivalry with China complicates Western engagement.

• Western nations sometimes expect closer alignment; India maintains multi-directional foreign policy, occasionally leading to misunderstandings.
• India prioritizes strategic autonomy, as demonstrated by its absence from the Indo-Pacific Economic Framework's (IPEF) trade pillar. India's economic dependence on China, raises concerns for the West. 

Digital Challenges: Concerns about India's digital governance originate from the high prevalence of cyberbullying. 85% of Indian children report experiencing online harassment, impacts India’s global image. 

Way Forward to deepen ties with the West while maintaining autonomy

Strengthen economic ties: Finalizing FTAs with the EU and UK, including streamlining regulations and lowering tariffs on imports.

• India leverages its rapidly expanding digital economy, which contributed 11.74% of India's GDP in 2022–23, to attract tech investments, especially from Silicon Valley.
• The recently signed India-UK CETA, aims to double bilateral trade to $120 billion by 2030. India is negotiating a similar agreement with the US. 

Balance strategic partnerships: Enhance Quad cooperation through joint initiatives and exercises.

• India and Australia launched a three-year joint research project in July 2025, to enhance undersea surveillance technologies.
• Increase joint naval exercises, like Malabar, to 10 annually by 2027 while maintaining engagement with the BRICS bloc.
• Co-producing defense equipment with partner nation, such as drones with Australia, strengthens strategic trust. 

Address domestic concerns: Implement transparent digital laws to curb cyberbullying, aligning with Western standards.

• Programs like No Bully India, to train 500 schools by 2026, promote safer online spaces. The National Cyber Crime Reporting Portal encourages reporting cyberbullying incidents. 

Counter geopolitical pressures: Communicate multi-alignment strategy, emphasizing energy security needs, particularly concerning Russian oil imports.

• Engaging in trilateral dialogues with the US and Russia can reduce misunderstandings and seek resolutions to disagreements over oil purchases.
• Collaborate more effectively in forums like the G20 and UN on global challenges.
• Continue joint military exercises, intelligence sharing, and expand maritime security in the Indo-Pacific.

Promote democratic dialogue: Annual democracy summits with Western partners to show success of electoral process and address criticisms regarding domestic policies through open channels.

• Joint initiatives, like the US-India TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative, focused on emerging technologies like AI, semiconductors, and quantum computing. 
• Conduct open dialogues on sensitive issues, understanding mutual "vital national compulsions" to manage differences and cultivate a pragmatic partnership

Source:  THE HINDU