Indian Foreign Policy in 2025: Ten Key Decisions

North Block, New Delhi. Image Courtesy: Laurie Jones

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  • India Deepens Engagements with Afghanistan

Afghan Foreign Minister Mawlawi Amir Khan Muttaqi’s visit to New Delhi on 10 October marked a significant shift in India’s Afghanistan policy. This was followed by India’s decision on 21 October to restore its Technical Mission of India in Kabul to full embassy status, highlighting New Delhi’s intent to protect its interests and retain strategic influence in Afghanistan.

 

  • Modi-Xi Meeting at the SCO Summit

Prime Minister Narendra Modi’s meeting with Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation Summit in Tianjin (31 August-1 September) represented the most meaningful political engagement between the two leaders in recent years. This interaction signalled a tentative stabilisation of India-China ties after a prolonged tension along the Line of Actual Control.

 

  • India-France Launch a Roadmap on Artificial Intelligence

During Prime Minister Narendra Modi’s visit to France for the Artificial Intelligence Action Summit (10-12 February), India and France launched a bilateral Roadmap on Artificial Intelligence. This initiative positioned AI as a core pillar of the strategic partnership between the two countries.

 

  • India-US COMPACT Initiative Announced

At the Modi-Trump meeting at the White House on 13 February, India and the United States unveiled the US-India COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce and Technology). The initiative sought to deepen cooperation across defence, trade, and emerging technologies, with both leaders setting an ambitious target of doubling bilateral trade to $500 billion by 2030.

 

  • India-EU Accelerate FTA Negotiations

European Commission President Ursula von der Leyen’s visit to India with the entire EU College of Commissioners on 27-28 February injected fresh momentum into India-EU relations. Both sides agreed to conclude the India-EU Free Trade Agreement by the end of 2025, signalling strategic convergence amid global economic uncertainty.

 

  • Indus Waters Treaty Put in Abeyance

On 23 April, the Cabinet Committee on Security (CSS) decided to place the 1960 Indus Water Treaty in abeyance until Pakistan “credibly and irrevocably” ends its support for cross-border terrorism. The move marked a rare instance of India linking a foundational water-sharing agreement directly to national security concerns.

 

  • Launch of Operation Sindoor

India launched Operation Sindoor on 7 May 2025 as a counter terrorism measure against Pakistan, following the 22 April terrorist attack in Pahalgam. The operation reinforced New Delhi’s doctrine of calibrated but forceful responses to cross-border terrorism.

 

  • India-UK Sign Comprehensive Economic and Trade Agreement (CETA)

India and the United Kingdom signed the Comprehensive Economic and Trade Agreement on 27 July 2025, concluding one of India’s most significant trade negotiations in recent years. The deal is expected to boost Indian exports in sectors such as gems and jewellery, textiles, information technology, and pharmaceuticals.

 

  • India and Canada Move Towards Normalisation

Canadian Foreign Minister Anita Anand’s visit to New Delhi from 12-14 October marked a cautious but clear attempt by both sides to stabilise strained India-Canada relations after a period of diplomatic tension.

 

  • President Putin’s Visit to India and New Strategic Initiatives

Russian President Vladimir Putin’s visit to India on 4-5 December, his first since the Ukraine War, reaffirmed the resilience of the India-Russia partnership. The visit focused on defence cooperation, energy ties, and efforts by both sides to recalibrate the relationship amid Russia’s growing dependence on China and India’s widening strategic options.

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