India's Relation
India's Relation
* **4.3 India and China:** Navigating Competition and Seeking Areas of Engagement.
The relationship between India and China is characterized by a complex interplay of
cooperation and contention, marked by a long history of border disputes, most notably along
the Line of Actual Control (LAC).[24, 25] Despite decades of diplomatic engagement, the
border issue remains unresolved and continues to be a source of tension, occasionally
leading to military stando�s and clashes, such as the deadly incident in the Galwan Valley in
2020.[24, 26, 27, 28] Strategic competition between the two Asian giants is evident in their
vying for in�uence in the Indo-Paci�c region, with India viewing China's Belt and Road
Initiative (BRI) and its growing presence in South Asia with apprehension, while Beijing
remains wary of India's increasing engagements with other regional powers and its
participation in initiatives like the Quad.[25, 26, 27] Despite the political and strategic
complexities, economic ties between India and China have remained remarkably robust. In the
�scal year 2024, bilateral trade reached an impressive $118.4 billion, with China's exports to
India amounting to $101.7 billion and India's exports to China at $16.67 billion.[24] However,
this signi�cant trade imbalance in favor of China has been a long-standing concern for India,
highlighting its reliance on Chinese imports, particularly in sectors like electronics and
pharmaceuticals.[24, 27] Despite the persistent challenges, both nations have engaged in
numerous rounds of diplomatic dialogues and con�dence-building measures aimed at
managing tensions and seeking potential areas of cooperation. High-level meetings between
leaders, such as the Wuhan Summit in 2018 and the Mamallapuram Summit in 2019, have
aimed to reduce tensions and foster greater cooperation.[26] More recently, there have been
some indications of a potential diplomatic reset, with both countries agreeing to resume
direct air services in January 2025 a�er nearly �ve years and expressing a commitment to
work on resolving di�erences over trade and economic issues.[29] In 2025, India and China
also marked 75 years of diplomatic ties with various events and bilateral dialogues, including a
breakthrough agreement on troop withdrawals in some disputed border areas in late
2024.[27] While these e�orts signal a willingness from both sides to engage and manage their
relationship, the underlying border dispute and strategic competition continue to cast a long
shadow, making a complete return to a pre-2020 "normal" relationship appear unlikely.[29]
* **4.5 India and Germany:** Enhancing Cooperation in Technology, Trade, and Security.
The partnership between Germany and India has been gaining signi�cant momentum in
recent years, re�ecting Germany's growing recognition of India's increasing geopolitical
importance in the evolving global landscape.[35, 36] This has been underscored by
Germany's release of its "Focus on India" document, which signals a non-partisan and
cross-ministerial e�ort to strengthen relations with India in hopes of bolstering both
countries' economic resilience, fostering innovation, and enhancing geopolitical stability.[35]
Germany is also actively trying to increase its presence in the Indo-Paci�c region, conducting
naval deployments in the Indian Ocean and joining naval exercises with India, Japan, the US,
and other allies, with the aim of keeping trade routes open and counterbalancing China's
presence.[35] Recognizing India's strengthened role as a "net security provider" in the region,
Germany's policy seemingly puts new emphasis on India as a "security partner".[35] To realize
their "convergences on key foreign and security policy challenges," the German and Indian
governments are focusing on practical cooperation between their armed forces and reliable
armaments cooperation, including more complex military maneuvers and enhanced
industrial-level cooperation in the defense sector, focusing on technology collaboration,
manufacturing/co-production, and co-development of defense pla�orms and equipment.[35]
A signi�cant move in this direction is the recent announcement by German conglomerate
Thyssenkrupp of their plan to team up with India's Mazagon Dock Shipbuilders to build six
advanced conventional submarines for the Indian Navy.[35] Beyond defense, Germany is
India's prime trading partner within the European Union, making economic ties a crucial pillar
of their relationship.[37] The two countries also share a commitment to a rules-based
international order and work together in multilateral forums, including the Group of Four (G4),
advocating for reforms in the United Nations and striving for permanent seats on the Security
Council.[36, 37, 38] Agreements on triangular cooperation and on migration and mobility have
also taken Indo-German relations to a new level.[36, 38] Applied research and technology
partnerships have long been a cornerstone of their relations, formalized through
intergovernmental agreements and initiatives like the Indo-German Science and Technology
Centre (IGSTC) and the Indo-German Digital Dialogue, fostering collaboration in areas such
as advanced manufacturing, sustainable energy, cybersecurity, and arti�cial intelligence.[35]
* **4.6 India and the United Kingdom:** Towards a Comprehensive Strategic Partnership.
The relationship between India and the United Kingdom, while historically signi�cant, has
been on an upward trajectory in recent years, particularly following the UK's decision to leave
the European Union.[39, 40] Despite periods of political turbulence within the UK, ties with
India have been strengthening, culminating in the adoption of the "2030 Roadmap for
India-UK future relations" during a virtual summit in May 2021.[39, 40, 41] This roadmap
provides a comprehensive framework to steer cooperation over the next decade across �ve
key pillars: people-to-people ties, trade, defense and security, climate action, and health.[39,
42] Alongside this roadmap, both countries also elevated their relationship to a
Comprehensive Strategic Partnership.[39, 40, 41] A signi�cant aspect of this enhanced
partnership is the ongoing negotiations for a Free Trade Agreement (FTA), which began in
January 2022.[39, 42] While a substantial portion of the agreement covering goods, services,
and investments has been mutually agreed upon, some contentious demands from both sides
are still awaiting resolution, including India's pursuit of greater mobility and a liberalized visa
regime for its skilled professionals and students in the UK, and Britain's desire for reduced
tari�s on its exports of automobiles and alcohol, as well as greater access to the Indian
market for its services sector.[40] Despite these outstanding issues, the election of a Labour
government under PM Keir Starmer in the UK has brought renewed momentum and political
stability to the negotiations, increasing the likelihood of a mutually bene�cial FTA.[40, 42]
Defense and security cooperation between India and the UK have also been on a positive
trajectory. Recognizing the untapped potential in this area, the UK formally launched the
"Defence Partnership-India" in February 2025, a dedicated cell within the UK Ministry of
Defence aimed at deepening cooperation with India.[39, 43] Industry-to-industry engagement
has also received a boost, with collaborations in defense technology and manufacturing.[39,
43] Military cooperation has seen growth through joint exercises, with the Royal Air Force
participating in the Indian Air Force's �rst-ever multinational air exercise in August 2024.[39]
Both countries are also collaborating on technology and innovation, with the launch of the
UK-India Technology Security Initiative (TSI) in July 2024, prioritizing cooperation in critical
and emerging technologies like cybersecurity, AI, and digital infrastructure.[43]
* **5.2 India and Bangladesh:** Fostering Connectivity and Addressing Bilateral Issues.
India and Bangladesh share historically close and cordial relations, rooted in their shared
history, language, and culture.[52, 53, 54] These ties �ourished particularly under the
leadership of former Bangladeshi Prime Minister Sheikh Hasina. However, the recent ouster of
Hasina in August 2024 and the subsequent formation of an interim government led by
Muhammad Yunus have introduced new complexities into the bilateral relationship.[55, 56, 57,
58] Despite these political shi�s, trade and economic partnership remain strong, with
Bangladesh being India's largest trade partner in South Asia and India being Bangladesh's
second-biggest trade partner in Asia.[52, 56] Bilateral trade reached USD 14.01 billion in FY
2023-24, re�ecting the signi�cant economic linkages between the two countries.[52, 56] A
key area of focus in their engagement is enhancing connectivity and infrastructure through
various projects, including railway links like the Agartala-Akhaura and Haldibari-Chilahati
lines, port connectivity with the operationalization of agreements for the usage of Chi�agong
and Mongla Ports in 2023, and energy cooperation such as the India-Bangladesh Friendship
Pipeline for diesel export.[52, 53, 56] Despite the strong cooperation in many areas, several
key concerns and challenges persist. Border security along the porous 4,096.7 km border
remains a hotspot for illegal crossings, smuggling, and tra�cking, with recent clashes
between border guards exacerbating tensions.[52] The long-standing dispute over the fair
sharing of the Teesta River's water also continues to be a point of contention.[52] India is
strategically concerned about China's growing in�uence in Bangladesh, particularly in
infrastructure and defense, perceiving it as a potential dilution of its strategic space.[52, 56]
Cross-border migration and the rights of minorities in Bangladesh, particularly the Hindu
community, are other sensitive issues that require careful management.[52, 56] In a
signi�cant development, Prime Minister Narendra Modi met with Bangladesh's Chief Adviser
Muhammad Yunus in Bangkok on the sidelines of the BIMSTEC Summit in April 2025, marking
their �rst o�cial interaction since the 2024 uprising. This meeting is seen as a positive step
towards potentially rebuilding some engagement between the two historically close
nations.[56, 58]
* **5.3 India and Nepal:** Balancing Traditional Ties with Evolving Geopolitical Dynamics.
India and Nepal share exceptionally close and friendly bilateral ties, deeply rooted in their
open border, extensive people-to-people connections, and commonality in religion, language,
and culture.[59, 60, 61] These bonds of friendship have historically de�ned the regular
high-level exchanges between the two countries, which have increased in frequency in recent
years.[59] However, Nepal has experienced a period of political instability, marked by frequent
changes in government. Most recently, in July 2024, K P Sharma Oli was appointed as the new
Prime Minister of a coalition government.[62, 63] Despite these domestic political shi�s,
economic cooperation, particularly in the mutually bene�cial hydropower sector, remains a
key pillar of the bilateral relationship.[63, 64, 65, 66, 67] India has agreed to import an
additional 251 megawa�s of electricity from Nepal, signifying the continued importance of
this sector.[63] However, a long-standing territorial dispute involving the territories of
Kalapani, Lipulek, and Limpiyadhura continues to be a sensitive point of contention between
the two countries.[63] Economically, India remains Nepal's largest trading partner and a
signi�cant source of foreign direct investment and tourism.[63] Given the close cultural and
economic bonds, tourism holds signi�cant potential for bolstering cooperation, and e�orts
are underway to enhance connectivity, including the opening of new air routes.[63] High-level
visits and exchanges continue to add momentum to the bilateral partnerships, with leaders
reviewing the entire gamut of their cooperation at regular intervals.[59]
Key Treaties & Agreements Major Disputes & Points of Key Collaborations
(India-Nepal) Contention (India-Nepal) (India-Nepal)
Treaty of Peace and Friendship Kalapani, Lipulek, Hydropower cooperation
(1950) Limpiyadhura territorial (Arun-3, Upper Karnali)
dispute
Treaty of Trade and Commerce Issue of Nepali citizens in India Connectivity projects
(1950) (Integrated Check Posts)
Separate Trade and Transit Concerns over India's Power sector cooperation
Treaties (1991) in�uence in Nepal (long-term power trade)
Agreement on Trade, Defence cooperation (training,
Commerce and Transit (revised Gorkha Regiment)
2016)
Development partnership
(infrastructure, health,
education)
* **5.4 India and Sri Lanka:** Strengthening Economic and Security Cooperation.
India and Sri Lanka share a relationship that spans over 2,500 years, characterized by a
strong civilizational and historical connection.[68] Sri Lanka holds a central place in India's
'Neighbourhood First' policy and its vision for regional security and growth.[68] Following a
period of political and economic turmoil in Sri Lanka, which saw the election of Anura Kumara
Dissanayake as president in September 2024, India has stepped in as a crucial partner.[55, 69,
70] During Sri Lanka's unprecedented economic crisis in 2022, India provided substantial
�nancial and material assistance, totaling US$4.5 billion, demonstrating its commitment to
ensuring a secure and progressive neighborhood.[69, 70, 71, 72] A signi�cant development in
their bilateral ties is the strengthening of defense cooperation. In April 2025, India and Sri
Lanka signed a comprehensive defense cooperation agreement, marking a historic expansion
of their strategic ties and aiming to counter China's growing presence in the Indian Ocean.[71,
73, 74, 75] This pact builds upon existing annual defense dialogues, naval exchanges, and joint
exercises, and is expected to lead to more structured initiatives, enhanced maritime
surveillance, and counter-terrorism collaboration.[71, 75] Energy cooperation is another
cornerstone of their partnership, with plans to supply lique�ed natural gas to Sri Lanka and
connect their power grids. Prime Minister Modi and President Dissanayake virtually launched
a solar energy project in Sampur, underscoring their commitment to energy security and
renewable energy.[69, 70, 71, 73] Economically, India has emerged as Sri Lanka's largest trade
partner, and e�orts are underway to further enhance trade relations, with discussions on an
Economic and Technology Cooperation Agreement (ETCA) resuming a�er a pause.[70, 71]
Connectivity is also being improved with the resumption of ferry services between
Nagapa�inam and Kankesanthurai and enhanced �ight services.[70]
Key Treaties & Agreements Major Disputes & Points of Key Collaborations (India-Sri
(India-Sri Lanka) Contention (India-Sri Lanka) Lanka)
India-Lanka Free Trade Concerns over Chinese Economic cooperation (trade,
Agreement (FTA) (2000) in�uence in Sri Lanka investment, aid)
Defence Cooperation Fishermen issue Energy cooperation (solar,
Agreement (2025) LNG, grid connectivity)
Agreements on energy, digital Impact of climate policies on Infrastructure development
connectivity, health, trade economic growth (ports, railways)
(2025)
Concerns about Indian Defense cooperation (joint
�shermen in Sri Lankan waters exercises, equipment supply)
* **5.5 India and Bhutan:** A Unique Partnership Anchored in Trust and Development.
India and Bhutan share an exceptionally close and unique bilateral relationship,
characterized by mutual trust, goodwill, and understanding.[65, 66, 76] This "special
relationship" makes Bhutan a protected state of India, with India remaining in�uential over
Bhutan's foreign policy, defense, and commerce.[77] The cornerstone of this enduring
friendship is the Treaty of Friendship and Cooperation, initially signed in 1949 and
subsequently renewed in 2007, which forms the basis for their cooperation and bilateral
interactions.[65, 66, 76, 77] India has been the principal development partner of Bhutan since
the early 1960s, extending signi�cant economic assistance to support Bhutan's
socio-economic development through its Five Year Plans.[65, 67] For Bhutan's 12th Five Year
Plan, India contributed a substantial amount, and this commitment was further strengthened
with Prime Minister Modi doubling India's support for Bhutan's 13th Five Year Plan to Rs
10,000 crores.[76] A key pillar of their mutually bene�cial cooperation is in the hydropower
sector. Several hydro-electric projects (HEPs) totaling 2136 MW are already operational in
Bhutan with Indian assistance, supplying electricity to India, and additional projects like the
1020 MW Punatsangchhu-II HEP are under construction.[65, 66, 76] India and Bhutan have
also expanded their cooperation into new and emerging areas, including space, with the joint
development and launch of the 'India-Bhutan SAT' satellite, and digital connectivity, with India
supporting Bhutan's 'Digital Drukyul' initiative.[65, 66] While the relationship remains strong,
India has expressed concerns over the increasing proximity between China and Bhutan,
particularly regarding the ongoing Bhutan-China border disputes.[64, 67] India is wary that
China may pressure Bhutan to cede access or control over the Doklam plateau, which is
strategically important for India's Siliguri Corridor.[64, 67]
Key Treaties & Agreements Major Disputes & Points of Key Collaborations
(India-Bhutan) Contention (India-Bhutan) (India-Bhutan)
Treaty of Friendship and China-Bhutan border dispute Hydropower development
Cooperation (1949, renewed
2007)
Agreement on Trade, Presence of North-East Development assistance (Five
Commerce and Transit (revised militant groups in Bhutan Year Plans)
2016)
Bilateral agreement on Stalled BBIN Motor Vehicle Defense cooperation (IMTRAT)
hydropower cooperation Agreement
(2006)
Protocol on hydropower Space cooperation (joint
cooperation (2009) satellite)
Joint Vision Document on Digital connectivity (RuPay,
Energy Partnership (2024) BHIM, NKN integration)
* **6.2 India and Africa:** A Historical Partnership for Mutual Growth and Development.
India and the African continent share a long and rich history of engagement, dating back to
ancient trade routes and cultural exchanges that pre-date the colonial era.[96, 97] India's �rst
Prime Minister, Jawaharlal Nehru, famously referred to Africa as India's "sister continent,"
highlighting the deep-rooted a�nity between the two regions.[98, 99] This historical bond
laid the groundwork for a dynamic and multifaceted economic partnership that continues to
evolve, with India becoming one of Africa's largest trading partners.[97] India-Africa trade
relations have seen substantial growth in recent years, reaching $83 billion in 2022.[96, 97]
The trade basket is diverse, including India's exports of machinery, chemicals, textiles, and
vehicles to Africa, while India imports minerals, oil, and agricultural products from the
continent.[97] Key trading partners for India in Africa include South Africa, Nigeria, Kenya, and
Egypt.[97] Beyond trade, Indian companies have made signi�cant investments in Africa across
various sectors, including energy, telecommunications, pharmaceuticals, and infrastructure,
with total investments amounting to $70 billion.[97, 99] India has also been a commi�ed
partner in Africa's development, extending development assistance through lines of credit,
technical assistance, and capacity-building projects.[97, 100] This includes supporting
projects in infrastructure, agriculture, and health through the India-Africa Development
Fund.[97] In a signi�cant move to enhance cooperation in higher education, India has
inaugurated o�shore campuses of its National Forensic Science University in Uganda and an
Indian Institute of Technology (IIT) in Tanzania, re�ecting its commitment to sharing expertise
in science and technology with African countries.[100] The India-Africa Forum Summits (IAFS)
have played a crucial role in facilitating trade and investments and strengthening the overall
partnership between the two regions.[98] India's approach to its engagement with Africa is
guided by principles of South-South cooperation, emphasizing partnership and mutual
bene�t rather than a donor-recipient relationship.[99]
India's Trade with Key Major Exports from India Major Imports to India
African Regions/Countries
(2022)
Total Trade: $93 billion Machinery, Chemicals, Textiles, Minerals, Oil, Agricultural
Vehicles, Pharmaceuticals Products, Diamonds, Copper
South Africa Minerals, Vehicles,
Pharmaceuticals
Nigeria Energy Resources (Oil)
Kenya Agricultural Products, Minerals
Egypt Crude Oil, Fertilizers
* **6.3 India and the Nordic Countries:** Exploring Synergies in Innovation and Sustainability.
India's engagement with the Nordic countries – Sweden, Finland, Norway, Denmark, and
Iceland – has been gaining momentum, marked by an increasing focus on strategic
coordination, innovation, and sustainability.[101] The India-Nordic summits held in 2018 and
2022 underscored the shared goal of expanding cooperation in areas such as clean and
green technologies, maritime security, digitalization, global health, infrastructure, and climate
action.[101] Sweden has emerged as a particularly vital partner, acting as a bridge and
mediator between India and the Nordic region, leveraging its strategic positioning, economic
in�uence, and diplomatic clout.[101] The partnership between India and the Nordics holds
immense potential for mutual growth and regional prosperity, with collaborations spanning
trade and technology, naval and maritime aspects, space and land technology, and energy
and electric aviation.[101] A key area of focus is renewable energy, where countries like
Norway, with its extensive experience in hydropower, solar, and wind energy, are collaborating
with India to support its transition towards sustainability and achieve its ambitious renewable
energy targets.[102, 103, 104] Digital transformation and smart cities are other promising
areas for cooperation, with Nordic countries sharing their expertise to complement India's
Smart Cities Mission.[103] The blue economy and ocean governance also present
opportunities for collaboration, focusing on sustainable �sheries, marine conservation, and
maritime infrastructure development.[103, 105] Bilateral trade and investment between India
and the Nordic countries have been on the rise, re�ecting a healthy economic engagement
and the potential for future growth.[101, 106] For instance, bilateral trade between India and
Sweden reached US$6.96 billion in 2024, with complementarities in cu�ing-edge
technologies creating good potential for collaboration in green technologies, renewable
energy, smart infrastructure, healthcare, and defense.[106]
India's Trade with Major Exports from Major Imports to Key Cooperation
Key Nordic Countries India India Areas
(2024)
Sweden: $6.96 billion Garments, Textiles, Communication Green Technologies,
Chemical Products, Equipment, Motor Renewable Energy,
Food Products Vehicles, Defense, Innovation
Pharmaceuticals
Finland: € 3.0 billion Paper, Machinery, Digitalization,
(2022) Equipment, Industry Education,
Services Sustainability,
Innovation
Norway: $1.2 billion Articles of Apparel, Nonferrous Metals, Blue Economy, Green
(2017-18) Textile Yarns, Gas Natural Shipping, Renewable
Manufactures of Manufactured, Plastics Energy
Metals
Denmark: USD 5.3 Textiles, Apparels, Medicinal/Pharmaceuti Green Shipping, Ports
billion (2023) Vehicles, Metal Goods cal Goods, Power Modernization,
Generating Machinery Renewable Energy
Iceland: $39.49 million Organic Chemicals, Cod-liver Oil & other Renewable Energy
(2018-19) Apparels & Fish Products, (Geothermal),
Accessories Medicines Fisheries, Arctic Issues
* **8.3 India's Role in the Shanghai Cooperation Organisation (SCO):** Balancing Interests in
Eurasia.
India has been actively engaged with the Shanghai Cooperation Organisation (SCO), a
Eurasian political, economic, and security alliance, since receiving observer status in 2005
and subsequently becoming a full member in 2017.[2, 128] The SCO provides India with a
signi�cant pla�orm to enhance regional trade, security, and infrastructure connectivity with
countries in Eurasia, including Central Asian republics.[2, 128, 129] India's engagement with
the SCO is rooted in its historical ties with the region and its willingness to play a proactive
role in the organization, focusing on initiating proposals for the mutual bene�t of SCO
member states, observers, and dialogue partners.[128] While some in India view the SCO as a
China-dominated forum, continued membership is seen as increasing India's policy space and
maximizing its options vis-à-vis China, allowing for constructive engagement and the pursuit
of its strategic interests in a complex geopolitical landscape.[129] During its chairmanship of
the SCO Council of Heads of Government in 2020, India undertook numerous initiatives
across a wide range of areas, including hosting seminars on start-ups, economic think-tanks,
traditional medicine, and young scientists.[128] At the SCO Summit in Samarkand in 2022,
India assumed the rotating presidency of the organization and was set to host the next
summit of the Council of Heads of State in 2023.[128] In February 2025, SCO
Secretary-General Nurlan Yermekbayev visited India, holding meetings with Indian o�cials to
discuss New Delhi's engagement priorities within the organization, encompassing areas such
as start-up and innovation development, digital technologies, traditional medicine, and
climate change.[130, 131] India has also assured China of its full support for China's
chairmanship of the SCO in 2025, indicating a commitment to continued engagement and
cooperation within the framework of the organization.[29, 130]
* **8.4 India's Leadership in the G20:** Shaping the Global Economic Agenda.
India plays a prominent role in the Group of Twenty (G20), the premier forum for
international economic cooperation, actively leading economic discussions and advocating
for reforms in global governance.[2, 132, 133] India held the Presidency of the G20 from
December 1, 2022, to November 30, 2023, a signi�cant period during which it convened the
G20 Leaders' Summit for the �rst time.[132, 133] Under its presidency, guided by the theme
"One Earth, One Family, One Future," India focused on a range of critical global issues,
including green development, climate �nance, inclusive growth, accelerating progress on
Sustainable Development Goals (SDGs), technological transformation, reforms of multilateral
institutions, and women-led development.[132] A landmark achievement of India's G20
presidency was its successful proposal for the African Union to become a permanent member
of the G20, a move that garnered unanimous support and signi�cantly ampli�ed the voice of
the Global South within the forum.[132, 134] India's approach to its G20 presidency was
characterized by a concerted e�ort to integrate the needs and priorities of the Global South
into the global dialogue, emphasizing holistic growth, innovation, and a renewed commitment
to multilateral cooperation.[134] India also launched key initiatives during its presidency, such
as the Global Digital Public Infrastructure Repository and a Social Impact Fund,
demonstrating its commitment to leveraging technology for development and addressing
global challenges.[126] Following its successful presidency, India continues to play an active
and in�uential role within the G20, with Brazil assuming the presidency in 2024 and aligning
its priorities with the foundational goals set by India, particularly in combating inequality and
enhancing global governance.[134] India's leadership in the G20 has signi�cantly
strengthened its global standing and its ability to shape the global economic agenda,
particularly in areas of importance to developing nations.[6]
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