This multi-alignment approach, long a hallmark of New Delhi’s diplomacy, was severely tested by new global realities. By the end of 2025, India’s strategic autonomy had evolved – still insisting on independent choices, but now buttressed by proactive economic outreach and coalition-building that made India more indispensable to multiple partners.

On the global stage, India embraced a nimble multilateral diplomacy to secure its interests in a fragmenting world order. With great-power competition intensifying, New Delhi recognized that purely multilateral norms were giving way to strategic alignments in trade and diplomacy. India worked to leverage forums old and new: from BRICS and the Shanghai Cooperation Organization to an active role in the G20, positioning itself as a bridge between East and West. Notably, India championed the cause of the Global South more vigorously. It convened multilateral dialogues among developing countries and amplified issues such as climate justice, debt relief, and equitable growth, seeking to translate its oft-stated slogan of being the “Voice of the Global South” into concrete initiatives.

Meanwhile, relations with Europe emerged as a crucial pillar of India’s global positioning.. European countries, investing in defense and seeking new alliances post-Brexit aligned with India’s strategic interests. Europe’s new geopolitical seriousness made it a credible partner in Indian eyes – offering investment, advanced technologies and defense collaboration.

A striking feature of India’s foreign policy in 2025 was its emphasis on economic growth as the foundation for global influence. After all, India’s leaders understand that diplomatic heft is underpinned by economic strength. Growth remained among the fastest for major economies – India’s GDP expanded by roughly 6-7%, and even surged above 8% in one quarter, reflecting strong domestic demand and investment. Exports and trade also saw healthy trends despite global headwinds.

In fact, India’s total exports (goods and services combined) were estimated at $73.99 billion in November 2025, a 15.5% jump year-on-year. Over the April-November period, cumulative exports climbed to $562 billion, 5.4% higher than the previous year – a notable achievement amid worldwide economic uncertainties. The government touted this export resilience as evidence that its focus on manufacturing and skilling was paying off. Trade policy became an instrument of foreign policy, used with newfound nimbleness. In 2025, India secured greater access to key markets through free trade agreements (FTAs) with New Zealand, the United Kingdom, and Oman, thereby expanding opportunities for Indian exporters. It continued to strengthen trade and investment ties with the Gulf states and Southeast Asia, leveraging growing markets there as Western demand decreased and laying the groundwork for trade agreements with other countries, including the United States, in 2026.

Even as India pursued trade and growth, it did not neglect the hard edge of national security. Still, it approached it with strategic restraint and a focus on modernization rather than bravado.

Within days, the government approved about $4.6 billion in emergency procurement of military equipment. It fast-tracked long-contemplated projects, including the development of an indigenous stealth fighter jet and the procurement of high-end armed drones. Just weeks earlier, New Delhi had also cleared a $7 billion acquisition of 26 Rafale naval fighter jets from France. These moves were part of a comprehensive push to modernize the armed forces and indigenize defense production.

The government’s reform agenda – declaring 2025 as the “Year of Defence Reforms” – helped the defense modernization efforts. Global arms makers were pushed to “Make in India,” partnering with Indian firms to produce fighter jets, helicopters, and artillery locally. This not only reduces dependence on foreign suppliers (a wartime vulnerability) but also positions India as a potential arms exporter. In fact, India’s defense exports in the fiscal year rose 12% to reach $2.76 billion, more than doubling from five years ago. Such strides in defense manufacturing create jobs and foster technological innovation, linking back to the economic focus.

In 2025, India’s foreign and security policy matured into a form of prudent assertiveness, marrying ambition with moderation. The country learned to temper its great-power aspirations with strategic patience and focus on fundamentals. India’s external agenda now runs on new engines: a rising economy and technological prowess, which have become as important to diplomacy as traditional geopolitics. By interweaving national security, economic, and diplomatic considerations into a coherent policy, India has positioned itself as a more versatile and respected player on the world stage.

It displayed strategic restraint in its region and avoided unnecessary conflicts, even as it steadily built-up power. India prioritized coalition-building over unilateralism and economic statecraft over empty chest-thumping. This approach has not only mitigated immediate challenges but also set India on a trajectory to truly be, in the coming years, one of the principal shapers of the emerging multipolar order. India ends 2025 more sure-footed and future-focused – committed to its own development and determined to contribute to global peace and prosperity through diplomacy, trade, and cooperation, rather than through force or bombast.