India's 2025: Navigating Global Risks, Diversifying Trade, Balancing US-China Tensions

• India faced significant challenges in 2025, including punitive US tariffs (50% on exports), lingering China tensions, and deepening reliance on Russian energy.
• To counter US trade volatility, India aggressively pursued trade diversification, finalizing deals with the UK, Oman, and New Zealand for duty-free access.
• Despite deep mistrust, India took cautious steps to stabilize ties with China, including a Modi-Xi meeting and resumption of direct flights.
• India maintained its balancing act by sustaining discounted Russian oil imports, with Russia becoming its largest crude supplier ($68.7 billion trade).
• Experts emphasize making India more business-friendly to foster growth and reduce reliance on external trade deals.

Why It Matters: India's 2025 foreign policy focused on strategic autonomy, balancing global risks, and diversifying trade partners.