Changes in India’s foreign policy

(MainsGS2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.)

Context:

• Year 2022 was a difficult year on the geopolitical and diplomatic stage as for India, the choices grew more difficult, given its strategic ties with the U.S. and Europe and traditional ties with Russia.

Handling the Ukraine crisis:

• The war in Ukraine saw the government spell out its version of “non-alignment”, as it sought to keep a balance in the growing polarisation between the U.S. and the European Union on one side, and Russia on the other. 
• A slew of sanctions by the West meant to target the Russian economy led to food and fuel shortages and price increases, which worried India.
• The government’s stand tough tight-rope walk with the Prime Minister making his discomfort with the war with the words “This era is not for war”, but at the same time refusing to accept western sanctions, growing military and oil trade with Russia, and seeking rupee-based payment mechanisms to facilitate them.
• Most significantly, in more than a dozen resolutions at the UNSC, UNGA, IAEA, Human Rights Commission, and other multilateral platforms seeking to censure Russia for the invasion and humanitarian crisis, India chose to abstain.

Highlights in foreign policy:

• The year was marked in many ways for Indian diplomacy, which will be at the forefront in 2023, during India’s presidency of the G-20 and chairship of the Shanghai Cooperation Organisation (SCO), which will bring all the major leaders of the world to Delhi for summits.
• In 2022, India returned to Free Trade Agreements, scrapped all Bilateral Investment Treaties (BITs) and walked out of the 15-nation Asian Regional Comprehensive Economic Partnership (RCEP).
• In 2022, India signed trade agreements with the UAE and Australia, and hopes to progress on talks with the EU, Gulf Cooperation Council and Canada for others.
• At the G-20, India is expected to highlight climate change transitions, “women-led” development and multilateral reform, among other key issues.

Ties with neighbours:

• In the neighborhood, India’s foreign policy was marked by economic assistance to Sri Lanka in the midst of its collapse, and regional trade and energy agreements with Bangladesh, Bhutan, and Nepal that could see a South Asian energy grid emerge.
• India has also strengthened ties with Central Asian countries on connectivity and kept channels open with repressive regimes like Afghanistan’s Taliban and the Myanmar Junta.
• This week, India abstained on a UNSC vote calling for Myanmar to end violence and release political prisoners.
• However, with Pakistan, ties remain flat-lined, with a big showdown at the UN this month between Mr. Jaishankar and Pakistan Foreign Minister Bilawal Bhutto.
• India-China tensions at the Line of Actual Control remained high, and the year ended with an unsuccessful Chinese PLA attempt to take Indian posts at Yangtse in Arunachal Pradesh, signaling more such clashes could follow in 2023.

Conclusion:

• Regardless of the fraught state of ties, India is due to host Mr. Xi twice in 2023, at the G-20 and SCO summits, which could create opportunities for talks to end the stand-off.