Global Trade Dynamics Shaped by Geopolitics
The Economic Survey of India, tabled in Parliament on January 29, 2026, warned that global trade and financial systems are entering a phase of heightened fragility. The report highlighted that economic decision-making is increasingly driven by security and political considerations rather than traditional efficiency or multilateral rules.
India-Arab Strategic Reset
Marking a significant diplomatic milestone on January 31, 2026, India hosted the second India–Arab Foreign Ministers’ Meeting after a decade-long hiatus. This gathering signalled a strategic reset across critical sectors, including energy security, trade, and regional geopolitics, while strengthening people-to-people ties.
Record Allocation for National Defence
On February 1, 2026, the Union Budget 2026-27 provided a significant boost to national security, with the Ministry of Defence receiving a record allocation of Rs 7.85 lakh crore. Accounting for 14.67% of the Union budget, this funding is designed to strengthen military preparedness and drive innovation through the #ViksitBharatBudget initiative.
Budgetary Focus on Neighbourhood Diplomacy
The Ministry of External Affairs’ budget allocations on February 1, 2026, reflected India’s evolving regional priorities, showing increased funding for projects in Afghanistan and Mongolia. Conversely, the budget saw cuts in funding for Bangladesh, reflecting the current state of bilateral ties, while Seychelles received a notable increase to support development and security.
Advancements in Long-Range Missile Technology
On February 03, 2026, the Defence Research and Development Organisation (DRDO) successfully tested Solid Fuel Ducted Ramjet (SFDR) technology. This advanced propulsion system, which combines a solid-fuel ramjet engine with a booster, enables missiles to achieve high-speed Mach 3 flight over long ranges.
Trump-Modi Trade Agreement Reached
In early February 2026, U.S. President Donald Trump announced a trade agreement with India under which U.S. tariffs on Indian goods would be reduced to about 18%. Trump publicly linked the tariff reduction to India halting its purchases of Russian oil. However, no official Indian statement confirmed a decision to stop importing Russian crude. The formal joint releases surrounding the trade announcement did not include any commitment by India to end Russian oil procurement. Briefings by India’s Ministry of External Affairs also did not state that imports had been halted. The Russian Foreign Ministry said it had received no notification from India indicating that oil purchases had stopped.
Steady Commitment to Chabahar Port
India restated its firm position on the Chabahar Port project in Parliament on February 5, 2026, confirming the transfer of $120 million for essential port equipment. After the U.S. sanctions waiver was revoked in late 2025, India secured a six-month extension allowing operations to continue through April 2026, while remaining engaged with international stakeholders to ensure uninterrupted Central Asian connectivity.
India and GCC Finalise FTA Terms
India and the Gulf Cooperation Council (GCC) reached a milestone in Delhi on February 6, 2026, by signing the terms of reference for a Free Trade Agreement (FTA). The agreement with the six Arab states—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE—is expected to significantly enhance trade and investment between the regions.
Successful Test of Agni-3 Ballistic Missile
On February 6, 2026, the Strategic Forces Command successfully test-fired the Agni-3 intermediate-range ballistic missile from Chandipur, Odisha. The launch validated all operational and technical parameters of the missile, which possesses a strike range of 3,000 kilometres.
Security Consultations in Ottawa
National Security Advisor Ajit Doval undertook an official visit to Ottawa, Canada, on February 6 and 7, 2026, for high-level security consultations. The visit focused on bilateral concerns and strategic cooperation between the two nations.
Strengthening Ties with Malaysia
Prime Minister Narendra Modi visited Malaysia from February 7 to 8, 2026, at the invitation of Prime Minister Dato’ Seri Anwar Ibrahim. The visit reaffirmed the deep civilisational ties between the two countries and resulted in a shared commitment to expand the India-Malaysia Comprehensive Strategic Partnership.
Indian Navy Leads Combined Task Force 154
On February 11, 2026, the Indian Navy assumed its first-ever command of the Combined Task Force (CTF) 154. This leadership role in the multinational maritime partnership underscores India’s growing responsibility in maintaining maritime security and safety in international waters.
Resumption of India-China Strategic Dialogue
Foreign Secretary Vikram Misri and Chinese Executive Vice Foreign Minister Ma Zhaoxu held a strategic dialogue in Delhi on February 10, 2026. The meeting served as a platform for the two nations to discuss bilateral issues and strategic concerns directly.
Initial Approval for Rafale Fighter Jets
In mid-February 2026, the Indian Defence Ministry gave initial approval for a proposal to procure 114 Rafale fighter jets from France. This significant acquisition is part of India’s ongoing effort to modernise its air force and enhance its regional air superiority.
Inaugural Mumbai Climate Week
The maiden edition of the government-backed Mumbai Climate Week commenced on February 17, 2026, focusing on the climate impact on the Global South. Leaders from conglomerates like Tata Sons and Godrej Industries joined cabinet ministers to discuss renewable energy and the nation’s transition away from coal and crude oil.
Indo-French Year of Innovation Launched
On February 17, 2026, Prime Minister Modi and French President Emmanuel Macron jointly inaugurated the 2026 India-France Year of Innovation in Mumbai. The initiative is designed to foster deeper collaboration in cutting-edge technology and research between the two nations.
Elevation to Special Global Strategic Partnership
During his official visit from February 17 to 19, 2026, President Emmanuel Macron and Prime Minister Modi agreed to elevate bilateral relations to a “Special Global Strategic Partnership.” This new framework will guide cooperation in areas ranging from the Indo-Pacific to artificial intelligence for the coming decades.
Inauguration of European Legal Gateway Office
External Affairs Minister S. Jaishankar inaugurated the European Legal Gateway Office in New Delhi on February 18, 2026. This office represents the first deliverable of the Joint Comprehensive Strategic Agenda between India and the EU, aiming to facilitate smoother mobility and legal cooperation.
Multilateral Naval Exercise ‘Milan’
Exercise ‘Milan’ commenced on February 19, 2026, with 19 foreign ships joining the Indian Navy for comprehensive maritime drills. The exercise focused on weapons firing and anti-submarine warfare operations, showcasing India’s role as a key security provider in the maritime domain.
Warning Against the Weaponisation of Economics
Speaking at the Global Economic Cooperation 2026 summit on February 17, 2026, Minister Jaishankar asserted that the world has entered its most turbulent period in living memory. He warned that nations are increasingly weaponising production and finance, with security considerations now taking precedence over economic efficiency.
India Joins US-Led ‘Pax Silica’ Initiative
On February 20, 2026, India formally joined the US-led Pax Silica initiative, a significant step toward strengthening partnerships in semiconductors and AI. The announcement followed a productive meeting of AI ministers from India, Australia, and Canada, coinciding with the launch of the ACITI Partnership.