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The Prime Minister’s recent acknowledgment in the Rajya Sabha of an emerging “new world order” reflects a significant inflection point in global politics. The post-1945 rules-based multilateral system is under visible strain due to unilateralism, great power rivalry, institutional paralysis, and the rise of minilateral groupings. For India, this moment presents both strategic risks and transformational opportunities.

Changing Global Order: Key Features

1. Rise of Unilateralism and Power Politics: Major powers increasingly privilege national interest over multilateral commitments. The withdrawal of the United States from several international institutions, growing tariff wars, and the strategic use of sanctions and supply chains illustrate a shift from rule-based governance to coercive geopolitics. Trade and technology are now instruments of power.

2. Institutional Paralysis: The UN Security Council remains gridlocked due to veto politics, failing to respond effectively to crises such as Ukraine and Gaza. The WTO’s dispute settlement system has weakened, encouraging unilateral trade barriers justified on “national security” grounds.

3. Rise of China and Parallel Architectures: China has built alternative institutions such as the Belt and Road Initiative (BRI), the New Development Bank (NDB), and RCEP, challenging Western-led norms. Control over rare earths, manufacturing, and emerging technologies enhances Beijing’s leverage.

4. Shift to Minilateralism: Flexible, issue-based coalitions like QUAD, AUKUS, I2U2, and regional FTAs are replacing universal platforms. This reflects a preference for functional cooperation over slow consensus-driven multilateralism.

5. Weaponisation of Interdependence: Supply chains, financial systems (e.g., SWIFT), semiconductors, and energy flows have become tools of coercion, redefining power in the digital and technological age.

Evolution of India’s Foreign Policy

India’s diplomacy has evolved through distinct phases:

• Non-Alignment (1947–1964): Moralpolitik based on Panchsheel and decolonization. The 1962 war exposed its limits.
• Strategic Realism (1964–1991): Security-driven alignment (1971 Indo-Soviet Treaty) and nuclear assertion (Pokhran-I, 1974).
• Economic Diplomacy (1991–2000): LPG reforms, Look East Policy, and integration into global markets.
• Multi-Alignment (2000–2014): India–US Civil Nuclear Deal, BRICS, G20 participation.
• Assertive Multi-Vector Strategy (2014–Present): Issue-based partnerships-participation in QUAD alongside defence ties with Russia (S-400); leadership of the Global South (G20 AU inclusion); expansion of minilateral initiatives; promotion of Digital Public Infrastructure (DPI) and ethical AI governance.

India increasingly positions itself as a “Vishwa Bandhu”, a bridge between the West and the Global South - aspiring to emerge as a stabilising “Third Pole.”

Emerging Challenges

1. China Factor: Border tensions, trade asymmetry, maritime expansion in the Indian Ocean, and rare earth leverage remain structural concerns.
2. Transactional Trade Environment: Bilateralism and coercive tariff diplomacy undermine predictability.
3. Neighbourhood Volatility: Political instability and China’s investment-led diplomacy challenge India’s regional influence.
4. Technology and Energy Dependence: Dependence on foreign semiconductor ecosystems, AI platforms, and critical minerals exposes vulnerabilities.
5. Expectation–Responsibility Gap: Rising global stature demands clearer normative positions.

The Way Forward: Reframing Strategy

India must align foreign policy with the developmental vision of Viksit Bharat 2047. Key priorities include:

• De-risking supply chains through friend-shoring and critical mineral partnerships.
• Building endogenous technological capacity in AI, semiconductors, quantum technologies, and cyber security.
• Aggressive trade diversification across Asia, Africa, and emerging markets.
• Maintaining strategic autonomy while preserving defence-energy ties with Russia.
• Repositioning BRICS and Global South platforms toward economic cooperation.

Conclusion

The erosion of multilateralism is not merely a systemic breakdown but a strategic opening. By combining domestic capacity-building with flexible, interest-based partnerships, India can transition from a balancing power to an autonomous centre of global influence—emerging as a stabiliser in an increasingly fragmented world order.