As the US experiences a decline and the America-led order is being replaced by a multipolar world, India is steadily marking its presence on the global stage. Its economic growth, technological prowess, and growing military and strategic capabilities are increasingly becoming a source of envy for the West.
This was evidently clear when, earlier this year, US Deputy Secretary of State Christopher Landau, while participating in the Raisina Dialogue in New Delhi, bluntly remarked that “we are not going to make the same mistakes with India that we made with China 20 years ago.” Buried beneath this statement is a harsh truth: the US fears that India, after China, could become its next rival in Asia, and that American policymakers should stop this from happening.
However, despite former US President Donald Trump’s persistent efforts to stop India from moving ahead through several measures, including trade restrictions, the country remains the fastest-growing major economy in the world.
Even amid ongoing instability in the Middle East and continued volatility in the Strait of Hormuz, India is expected to register a growth rate of 6.1 per cent in 2026–27 and 6.4 per cent in 2027–28, according to the Organisation for Economic Co-operation and Development (OECD). Meanwhile, the IMF has projected India’s growth at 6.4 per cent in 2026–27 and 6.7 per cent in 2027–28. This is a report that speaks volumes about the strong fundamentals of the Indian economy.
By 2027, India’s domestic Artificial Intelligence (AI) market is projected to reach around $17 billion, making it one of the fastest-growing AI economies globally, according to a report by Boston Consulting Group (BCG). As of March 2026, there were around 1.8 lakh startups in India, with nearly 89 per cent of them utilising AI solutions. With the help of AI Kosh—a central repository of open datasets accessible to researchers and innovators—India aims to support its ambition to become a top AI player in the world.
Building on these twin pillars of a strong economy and advanced technology, India is positioning itself to scale new heights at a time when shifting geopolitical dynamics offer New Delhi an opportunity to chart a new pathway, devoid of chaos and uncertainty. Perhaps this is the reason why India has chosen with great alacrity to renew its bilateral engagement with China.
On August 1, more than six years after the Galwan Valley clash led New Delhi to suspend standard bilateral relations with Beijing, India and China resumed cross-border trade through the Nathu La Pass, which connects Sikkim with Tibet at an altitude of 4,310 metres above sea level. This development took place weeks before Chinese President Xi Jinping is expected visit to New Delhi for the BRICS summit. Russian President Vladimir Putin is also expected to arrive in India for the summit, scheduled for September 12–13.
Defying global uncertainty and geopolitical headwinds, India’s economy continues its robust trajectory, with major institutions projecting growth above 6 per cent through 2028
In the backdrop of the Middle East crisis, it remains to be seen how effective and impactful the forthcoming BRICS summit will be. If India manages to bring all members, especially Iran and the UAE, onto the same page, it will mark a major diplomatic achievement. But the question remains: will India’s alignment with its Western partners allow it to navigate growing pressures surrounding de-dollarisation? India has so far avoided being pressured into accepting the aggressive push by China and Russia toward de-dollarisation. Yet, the solution lies not in stonewalling calls for reform of the dollar-dominated financial system, but in reminding the US that India maintains strategic autonomy—and that it cannot remain a passive bystander when the group is intent on reducing reliance on dollar-centric trade.
On intra-BRICS trade as well, heterogeneity continues to pose a challenge, and a lack of uniform views among member states persists. Despite accounting for 27 per cent of global output, 24 per cent of exports, and 22 per cent of foreign direct investment, intra-BRICS trade accounts for only around 5 per cent of global trade. Experts suggest that there is significant untapped potential for deeper trade integration and stronger value-chain linkages. Enhanced economic cooperation among BRICS countries could be a defining factor in the group’s emergence as a powerful global force.
What is particularly significant, however, is India’s consistent effort to strengthen its ties with Russia in the face of attempts by the US and its Western allies to isolate and weaken the Eurasian country through sanctions. Concurrently, New Delhi is mindful of China’s attempts to increase its influence over Moscow and turn it into a vassal state. India is fully aware of the adverse geopolitical consequences that would arise if Russia becomes weak and loses control over its scientific and military assets.
Indeed, neither India nor the West wishes to see Moscow drawn fully into Beijing’s orbit, allowing Russian expertise in critical fields—such as nuclear engineering, space technology, missile and rocket engineering, hypersonic weapons, advanced materials, and Arctic research—to pass into Chinese hands.
Furthermore, no major power wants China to expand its economic influence across the Russian Far East and Siberia, nor to see Beijing emerge as an aggressively dominant force across Asia, asserting territorial claims against India, Japan, and Southeast Asian nations. Apart from the US, China remains the biggest strategic obstacle to India’s aspirations of becoming a major global power. Knowing this well, it would not be prudent for India to allow Russia to become weak and vulnerable to excessive Chinese influence.
India’s continued efforts to solidify its relations with Moscow, alongside its unyielding stand on purchasing Russian crude oil despite US-backed punitive measures, reaffirm New Delhi’s long-held belief that “a friend in need is a friend indeed.” Moreover, amid shifting international dynamics, India’s engagement with Russia reflects strategic pragmatism rather than ideological alignment. It seeks to maintain productive relations with both Russia and the US, while simultaneously managing its strategic rivalry with China.
Last year, when Beijing imposed restrictions on exports of rare earth elements and strategic metals essential for high-end technologies, New Delhi responded to the challenge in a measured manner. It launched an array of diplomatic and commercial initiatives aimed at diversifying its mineral supply chains.
From managing border engagements with Beijing to securing critical mineral supply chains alongside Quad partners and preserving its defence and energy ties with Moscow, New Delhi remains committed to an independent stance on the world stage
This year, on May 26, India and the US signed a framework agreement aimed at securing supplies of critical minerals and rare earths, including their mining and processing. During the Quad Foreign Ministers’ meeting in New Delhi, India, Japan, the US, and Australia agreed to launch a $20 billion critical minerals framework.
According to a July 2023 report by India’s Ministry of Mines, the country possesses reserves of 30 critical minerals, including lithium, cobalt, nickel, graphite, copper, titanium, tungsten, vanadium, and niobium. India also holds 13.15 million tonnes of monazite, containing an estimated 7.23 million tonnes of rare earth oxides. According to experts, India is well positioned to emerge as a significant hub in the non-China critical minerals supply chain.
A similar trend is being witnessed on the defence and strategic fronts. Today, India is seen as a decisive and responsible military power. For the fifth consecutive year, it has been ranked as the third most powerful military aviation power in the World Directory of Modern Military Aircraft (WDMMA) 2026. Maintaining over 1.45 million active personnel and a defence budget exceeding $80 billion, it ranks 4th out of 145 countries in the Global Firepower Index.
Significantly, technological innovation has emerged as a cornerstone of India’s defence strategy. Over time, defence research and development expenditure has increased by over 112 per cent. A key driver of India’s defence transformation has been the emergence of startups contributing directly to national security.
The Innovations for Defence Excellence (iDEX) initiative has played a pivotal role in bridging the gap between innovators and the armed forces. International defence deals have likewise accelerated India’s transition from an importer to an exporter of defence technology. In the financial year 2025–26, the country’s total defence exports exceeded $4.1 billion.
This reflects how steadily India has strengthened its position as a power that has made remarkable progress in economic development, technology, diplomacy, and defence. Yet, addressing domestic challenges will ultimately determine how successfully it transforms its growing influence into long-term global leadership.
The writer is a senior journalist with wide experience in covering international affairs. The views expressed are of the writer and do not necessarily reflect the views of Raksha Anirveda
