How 2025 Became One of the Toughest Years for India's Foreign Policy

India's diplomacy faced severe tests in 2025, including conflict with Pakistan, worsening ties with US under Trump, strained ties with Bangladesh and shifting global alliances. While trade tensions rose, India improved China-Russia ties, inked UK FTA

For India's diplomacy, 2025 was a year of extreme pressure and high stakes. The country had to deal with the most serious military crisis with Pakistan in decades, worsening ties with the United States under President Donald Trump, growing instability in Bangladesh and fast-changing global power politics.

At the same time, India also worked to repair relations with China, deepen ties with Russia, secure energy supplies and rebuild trust with countries like Canada and the United Kingdom. Every major decision carried global consequences.

For New Delhi, 2025 was not just about managing relationships. It was about defending national security, protecting economic interests, and preserving strategic independence in a rapidly shifting world.

Terror attack in Pahalgam sparks global shock

India's biggest diplomatic test began in April 2025, after a horrific terror attack in Pahalgam in Jammu and Kashmir. Pahalgam terror attack killed 26 innocent people, triggering outrage across India and strong reactions from global capitals.

India made it clear that the attack was linked to cross-border terrorism from Pakistan. New Delhi told major world powers that it had the right to respond and would not accept continued attacks on its civilians.

The government's message was firm and public. Terrorism, India said, could not be treated as business as usual.

India suspends Indus Water Treaty with Pakistan

Soon after the attack, India announced a series of punitive measures against Pakistan. One of the most significant steps was the suspension of the Indus Water Treaty, an agreement that had survived wars and crises for more than 65 years.

Prime Minister Narendra Modi delivered a strong message while announcing the decision. He said, “Water and blood cannot flow together.”

The move marked a major shift in India’s approach and sent a powerful signal to Islamabad and the international community.

Operation Sindoor: India strikes terror camps

Exactly two weeks after the Pahalgam attack, India launched Operation Sindoor in the early hours of May 7.

Indian forces carried out precision airstrikes on nine terror camps located in Pakistan and Pakistan-Occupied Kashmir. At least 100 terrorists were eliminated, according to Indian officials.

The operation showed India’s willingness to act decisively while keeping the strikes targeted and controlled.

Escalation and fear of full-scale war

Pakistan responded with retaliatory strikes, sharply escalating tensions. However, most of these attacks were successfully thwarted by the Indian military.

As the situation worsened, fears grew of a full-scale war between two nuclear-armed neighbours. Several world capitals urged restraint and reached out to both New Delhi and Islamabad to stop the fighting.

The crisis ended on May 10, after talks over the military hotline between the two sides. Both countries agreed to halt further military action.

Trump announces ceasefire, irritates New Delhi

The end of hostilities brought an unexpected diplomatic challenge. US President Donald Trump announced the ceasefire first, doing so through a social media post.

In the months that followed, Trump repeatedly claimed that the United States had resolved the India-Pakistan conflict and saved millions of lives.

India strongly rejected this version of events. New Delhi said the halt in fighting was the result of direct talks between India and Pakistan, with no US role involved.

This public disagreement angered the Trump administration and added strain to India-US ties.

US-Pakistan ties warm under Trump

Tensions grew further when Trump hosted Pakistan army chief Field Marshal Asim Munir for a closed-door lunch at the White House on June 18.

The meeting marked a clear improvement in US-Pakistan relations. Trump met Munir again at the White House on October 1.

For India, these meetings were troubling. They suggested a shift in Washington’s regional approach at a time of rising security concerns.

Trade shock: Trump slaps heavy tariffs on India

India-US relations suffered another major blow in August, when Trump imposed a 50 per cent tariff on Indian goods.

This included an additional 25 per cent levy on India for purchasing Russian crude oil. The move sharply affected trade talks and pushed relations into what many experts called their worst phase in nearly 20 years.

Washington's new immigration rules, including raising the H1B visa fee to USD 1,00,000, further deepened tensions.

Pakistan's defence pact with Saudi Arabia raises concerns

Another major development came when Pakistan signed a strategic defence pact with Saudi Arabia, months after Operation Sindoor.

The pact stated that any aggression against one country would be treated as aggression against both.

This raised eyebrows in New Delhi and added complexity to India’s regional security calculations.

Relations with Bangladesh hit rough waters

India's ties with Bangladesh also worsened during 2025. The strain was linked to rising activities of extremist groups, which targeted minorities, including Hindus.

Bangladesh's growing engagement with Pakistan and China added to India’s concerns.

Relations began to slide after former Prime Minister Sheikh Hasina fled to India in August 2024, following mass protests that ended her nearly 16-year rule.

China ties improve after years of tension

In contrast, India-China relations improved significantly in 2025 after years of tension over the eastern Ladakh border.

Both sides took steps to rebuild trust. These included the resumption of the Kailash Manasarovar Yatra, restarting direct flights, and easing visa rules.

In August, Prime Minister Modi and Chinese President Xi Jinping agreed to deepen cooperation and work towards a fair solution to the border issue.

Modi-Xi meeting in Tianjin signals reset

During the Shanghai Cooperation Summit in Tianjin, Modi and Xi pledged to expand trade and investment ties to stabilise global commerce.

Days before Modi’s China visit, Chinese Foreign Minister Wang Yi visited New Delhi. Both sides announced steps for a stable, cooperative and forward-looking relationship.

These included maintaining peace along the border, reopening border trade, and promoting investment.

Russia ties strengthen despite Western pressure

India’s relations with Russia saw a strong upswing, especially in the energy sector, despite Western pressure.

Towards the end of the year, Russian President Vladimir Putin visited India. Both sides agreed on a five-year plan to boost trade and investment.

The move helped India manage the impact of US sanctions and tariffs.

India-UK free trade deal marks major win

In July, India and the United Kingdom signed a historic Free Trade Agreement (FTA). The deal aims to cut tariffs, open markets, boost trade, and create jobs in both countries. It was seen as a major diplomatic and economic success.

India and Canada begin rebuilding trust

The year also saw efforts to improve India-Canada relations, which had collapsed after allegations made by former Prime Minister Justin Trudeau in 2023.

India had rejected the claims as absurd, and 2025 marked the first steps towards rebuilding trust.

Focus on Indo-Pacific and energy security

Throughout the year, India placed strong focus on the Indo-Pacific region and on strengthening energy security.

New Delhi worked closely with Gulf nations to expand cooperation and secure reliable energy supplies.

2025 pushed India’s foreign policy to its limits. From war scares to trade shocks, and from neighbour tensions to global realignments, New Delhi had to act with firmness and flexibility.

The year showed that India is willing to stand its ground while also rebuilding bridges. The lessons of 2025 will shape India’s diplomacy for years to come.

(With inputs from agencies)