India’s Rise as a Global Power: Strategic Diplomacy in a Multipolar World
By Aanya Rangachary
Introduction
In recent years, India has emerged as a growing influence on the world stage: economically, as the world’s fourth-largest economy with a rapidly expanding IT export sector; diplomatically, through leadership roles in forums like the G20 and its advocacy for Global South representation; and geopolitically, as a key maritime and military power in the Indo-Pacific. Ultimately, India’s rise reflects not only its national ambitions but also a broader transformation in the global order—one defined by the decline of unipolar dominance, the emergence of multiple centers of power, and the increasing importance of diverse voices in shaping global governance.
A rapidly rising world power, India is among the top five global economies globally in terms of nominal Gross Domestic Product (GDP). With the largest population in the world, having surpassed China in April 2023, India’s economy is projected to continue its expansion due to its abundant labor supply and massive consumer market, at a current growth rate of 6-8% annually. This growth is especially evident in India’s dominance in the digital sector. India is a global leader in Information Technology (IT) services and software engineering, with companies such as Infosys and Tata providing $150-200 billion in IT exports annually. As Google CEO Sundar Pichai observed, “India is going to be a full-stack player in AI,” highlighting its expanding influence in the global technology landscape. Beyond private-sector success, India has also pioneered Digital Public Infrastructure (DPI) through initiatives like India Stack—including Aadhaar and Unified Payments Interface—which it is now exporting to countries across the Global South as a model for inclusive digital development. Furthermore, India’s expanded trade relations with countries all over the world contribute to its emergence as a key player in global supply chains.
Additionally, India has pursued growing leadership roles in international institutions, most notably in the G20 and BRICS, seeking to amplify the voice of developing countries, advocate for more equitable global governance, and position itself as a bridge between the Global North and the Global South. Additionally, it has strategic partnerships with major powers such as the United States, Japan, and Australia, as well as defense ties to Russia. India’s foreign policy is a complex balancing act between Western and developing nations, true to its principle of “strategic autonomy.”
Through prominence in geopolitical, economic, and military sectors, India's strategic importance is on the rise. The Indian Ocean region accounts for one-third of the world’s bulk cargo traffic and two-thirds of the world’s oil shipments, making India strategically important for maritime security. In addition, India has one of the world’s largest military forces, with approximately 1.5 million active military personnel—the second-largest globally—and is one of nine countries to possess nuclear weapons with its arsenal of around 180 warheads.
From Non-Alignment to Global South Leadership and Multi-Alignment
Historically, India’s foreign policy has been centered on non-alignment. Starting from its independence in 1947 during the Cold War, India avoided joining military blocs as a tool for the newly independent nation to assert sovereignty. India quickly became a founder and leader of the Non-Aligned Movement (NAM) in 1955.
However, in recent years, the focus of India’s foreign policy has shifted towards the Global South. As India’s economic and demographic weight has grown, engaging with developing countries allows it to expand trade, investment, and infrastructure partnerships, while also building political support for global governance reform. The India-Africa Forum Summit and the India-CARICOM summits are examples of India’s push to deepen ties with Africa and Latin America, respectively. Within a fortnight of assuming the G20 presidency in January 2023, Prime Minister Narendra Modi hosted the first Voices of the Global South Summit (VOGSS) to focus international attention on concerns of developing countries, including climate action and development finance. Two more such summits followed in November 2023 and August 2024.
The theme of India’s G20 presidency was Vasudhaiva Kutumbakam (One Earth, One Family, One Future). India utilized the G20’s multilateral cooperation to push for the voices of developing countries and engage with states outside the bloc. Among the other accomplishments of the G20 under India's leadership was courting the permanent membership of the African Union, successfully adding a body that represents 55 more countries. India was able to channel the inputs received during VOGSS into the deliberations of the G20. Furthermore, in 2024, five more countries: Saudi Arabia, Egypt, the UAE, Ethiopia, and Iran were added as members of BRICS, further amplifying the voice of the Global South.
Additionally, India has pushed strongly for reforms in global financial institutions, advocating for more equitable access to development financing for emerging economies. This included calls for restructuring debt frameworks, increasing concessional lending, and prioritizing infrastructure investments in vulnerable regions, as seen in Zambia’s engagement with the G20 Common Framework, where coordinated debt treatment agreements helped stabilize the country’s economy and create fiscal space for critical development projects. With these programs, India has framed itself as a reformer seeking to reshape global governance.
Climate Diplomacy and Global Governance Reform
Another of India’s major focus areas in recent years has been climate diplomacy, specifically by emphasizing the interconnected nature of development and climate. Sustainable growth, India believes, must account for historical inequalities and differing national capacities.
India’s bid to host the UN annual climate conference COP33 in 2028 represents both symbolic ambition and strategic calculation. Hosting a major global climate conference would signal India’s arrival as a central actor in climate governance, while also providing a platform to amplify the concerns of developing nations.
From a symbolic perspective, hosting COP33 would reinforce India’s identity as a bridge between the developed and developing worlds. It would allow India to showcase its own climate initiatives, such as its over 260 GW of renewable energy installations and international solar cooperation, while highlighting the challenges faced by rapidly industrializing economies.
Strategically, the bid enhances India’s leverage in global negotiations. India has consistently walked a careful line: committing to climate action while safeguarding its developmental priorities. Unlike many developed nations, India must balance emissions reduction with poverty alleviation, infrastructure growth, and energy access for its massive population.
This dual approach reflects a broader diplomatic philosophy. Taking a liberal internationalist approach, India frames climate action as a shared responsibility in which each country contributes according to its capacity, consistent with the UN principle of Common But Differentiated Responsibilities (CBDR). In this sense, India’s strategy for climate diplomacy is deeply aligned with Vasudhaiva Kutumbakam: cooperation rooted in mutual respect and differentiated responsibility.
Strategic Autonomy and a Multipolar World
At the heart of India’s rise lies its enduring commitment to strategic autonomy. In an increasingly polarized global landscape, India has resisted the pressure to align fully with any single bloc. Instead, it has cultivated relationships with countries across the spectrum.
India has significantly strengthened its ties with Western nations, particularly the United States and European countries. Cooperation spans technology, trade, and energy, as well as joint military exercises and intelligence sharing. Economic collaboration has also expanded, with growing investments in sectors such as clean energy, semiconductors, and digital infrastructure. For example, in 2025, Microsoft invested $17.5 billion in India to scale cloud, AI services, and digital infrastructure across the country.
At the same time, India continues to strengthen its relationships with developing countries. Within BRICS, India plays a key role in shaping discussions around trade cooperation and institutional reform.
India’s outreach to Africa, Latin America, and Southeast Asia reflects a long-term vision of Global South cooperation. Through $30+ billion in lines of credit to developing countries and various infrastructure projects, India positions itself as a partner to developing nations. This dual engagement embodies India’s version of strategic autonomy and multi-alignment. It allows India to navigate global tensions without being constrained by rigid alliances. However, this balancing act is not without challenges: ongoing border tensions with China and the geopolitical pressures stemming from the Russia-Ukraine War have tested the limits of India’s neutrality, forcing it to carefully manage competing strategic and economic interests.
Conclusion
India’s rise is not occurring in isolation. It is part of a broader transformation in the global order: the gradual decline of unipolar dominance and the emergence of multiple centers of power. Countries across Asia, Africa, and Latin America are asserting greater agency, reshaping international norms and institutions.
In this evolving landscape, India stands out as both a beneficiary and a driver of change. Its economic growth, demographic strength, and diplomatic activism position it as a leading voice among developing nations.
Looking ahead, however, India’s ability to sustain this role will depend on how effectively it manages its energy transition—balancing rapid economic growth with the need to reduce dependence on fossil fuels and to expand reliable, affordable clean energy for its vast population.
India’s rise is more than simply national ambition. It is a reflection of a shifting global order—one in which diverse voices matter, and cooperation becomes essential. In embodying Vasudhaiva Kutumbakam, India offers not just a model of diplomacy, but a vision for the future of global governance itself.
