India's Diplomatic Gauntlet: Navigating a Volatile 2025 Under Trump's Transactional World Order

• 2025 proved a challenging year for Indian diplomacy amidst a volatile, transactional global order, from Bangladesh to the US.
• Trump's amoral, transactional foreign policy prioritized personal validation, leading to punitive 50% tariffs on Indian goods.
• Trump favored Pakistan with lenient tariffs and deals, while punishing India for its energy ties with Russia and refusing US agribusiness access.
• India responded by accelerating strategic trade diversification (FTAs, INR settlements) and deepening engagement with Russia and China.
• The US-China power struggle shifted to transactional competition, squeezing middle powers like India and highlighting the decline of the US Dollar.

Why It Matters: India faced a tough 2025, adapting to Trump's transactional world by diversifying trade and alliances.