How, and why, Indian diplomacy went from neutrality to realism

For Indians, August 15, is not merely a date in the calendar, but a sacred moment in history. On this day, the country finally broke free from the shackles of centuries of foreign domination. Independence meant the right to make our own decisions, the right to make our own mistakes and the freedom to chart a unique destiny.

Yet, while India’s citizens celebrated their liberation with hope and pride, the outside world regarded this new republic with uncertainty. Many foreign observers viewed the moment with suspicion rather than admiration. India emerged from colonialism with a fractured economy, a population still reeling from social wounds and a geography altered by the trauma of Partition. Sceptics openly wondered whether this fragile, newly independent nation could survive—let alone thrive—in the harsh realities of the global order.

Finding our footing as a nation

In the decades that followed, the answer to those doubts gradually became clear: India would survive, and in time, it would thrive. But the journey was neither simple nor swift. The new republic had to adjust its economic policies, rethink approaches to social justice and rebuild systems weakened by centuries of exploitation.

Yet in one sphere, India displayed remarkable agility from the very beginning—diplomacy. On the world stage, the nation walked forward with both purpose and principles. Foreign policy became a platform where India could assert its identity, ideals and aspirations without the burden of colonial shadows.

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Cold War arrives at India’s doorstep

Barely had the ink dried on the independence documents when a new geopolitical reality came knocking—the Cold War. The 20th century’s defining ideological struggle was beginning to reshape the global scenario dividing it into two opposing blocs:

• US-led capitalist bloc

• Soviet-led communist bloc

Across continents, governments were picking sides. Yet India’s response was clear and confident. Thanks for the invitation, but we’ll stay out of it.

This decision birthed what would become one of the cornerstones of Indian diplomacy—the Non-Aligned Movement (NAM).

Roots of non-alignment

The seeds of non-alignment had been planted even before independence. In March 1947, Jawaharlal Nehru hosted the Asian Relations Conference in New Delhi. It brought together representatives from 28 Asian countries, united by a vision of post-colonial solidarity. The conference sought to foster continental unity and resist the pull of external power blocs.

After becoming prime minister, Jawaharlal Nehru built on this foundation. Alongside unity, he added another strategic pillar—neutrality. He envisioned an Asia that stayed clear of Cold War entanglements.

This vision gained momentum at the Bandung Conference in 1955, held in Indonesia. This time, it was not just Asia—African nations also joined the effort. Twenty-nine countries, representing more than half of the world’s population, participated. Such gatherings solidified the conceptual framework that would become the Non-Aligned Movement.

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Criticism and idealism

From the beginning, NAM faced criticism. Detractors labelled it “fence-sitting” or even “isolationist.” But India’s leadership held firm—they sought to be players, not pawns in the Cold War chess game.

In the 1950s, India’s diplomacy was rooted in principles rather than cold strategic calculations. It tried to broker peace during the Korean War, advocated for the global recognition of Communist China and spoke out against the tripartite aggression on Egypt during the Suez Crisis. These actions earned India moral prestige and the image of a “voice of justice.” But there was a weakness—pragmatism was often missing.

The 1960s: A decade of reality checks

The 1960s brought sharp lessons. India’s neighborhood policy collapsed when two neighbors—China in 1962 and Pakistan in 1965—attacked. The war with China ended in humiliation; the war with Pakistan ended in victory. But both conflicts made it clear: principles could earn praise, but they could not guarantee protection.

Economically, the country was still struggling under the weight of colonial damage. The economy had been de-industrialised, agriculture was in poor shape and the nation relied on importing 10–11 million tonnes of wheat annually. Between 1955 and 1965, India reached the peak of its dependence on foreign aid—millions of dollars for health programmes, rural education and family planning flowed into the country.

This dependence weakened the non-alignment stance. During the Vietnam War, India criticised US actions but still needed American aid. Washington leveraged this, pressuring New Delhi to tone down its opposition. The decade forced Indian diplomacy to face an uncomfortable truth: ideals alone could not drive foreign policy.

The 1970s: Realism arrives

The 1970s marked a strategic shift toward realism. Domestically, the Green Revolution transformed agriculture. By the end of the decade, India was self-sufficient in food grains, ending the era of dependence on foreign food aid.

On the diplomatic front, a landmark move came in 1971 with the signing of the Treaty of Friendship with the Soviet Union. This was no mere symbolic gesture—it was a calculated response to geopolitical turbulence. The US was drawing closer to China and Pakistan’s crackdown on ethnic Bengalis in East Pakistan had triggered a massive refugee influx into India. Neutrality could not resolve these crises any longer and realism was the pragmatic way forward.

The Soviet alliance paid off. In the 1971 war, it provided the strategic backing that helped India secure victory and pave the way for the creation of Bangladesh. Throughout the decade, Indo-Soviet ties flourished—trade nearly doubled from $460 million in 1973 to $830 million in 1975, weapon sales expanded and cooperation reached space exploration with the launch of India’s first satellite in 1975 on a Soviet rocket.

The 1980s: Regional power and missteps

The 1980s began with India consolidating its leadership in South Asia. In 1985, it played a key role in founding Saarc (South Asian Association for Regional Cooperation), intended to promote unity much like Asean did in Southeast Asia.

But the decade also saw a costly misstep. In Sri Lanka, a brutal civil war between the government and Tamil separatists intensified. Given the shared ethnic ties between Tamils in Sri Lanka and millions in southern India, New Delhi intervened. The Indo-Sri Lankan Accord of 1987 led to the deployment of the Indian Peacekeeping Force (IPKF). Originally tasked with maintaining peace, the IPKF soon became embroiled in direct combat with Tamil separatists. By 1990, India withdrew, marking one of its most significant diplomatic blunders.

Meanwhile, global dynamics were shifting. Ties with China warmed, the Cold War neared its end, and the Soviet Union became mired in Afghanistan. Prime Minister Rajiv Gandhi’s visits to the US in 1985 and China in 1988 prepared the ground for a post-Cold War diplomatic strategy.

The 1990s: Liberalisation and new partnerships

The 1990s opened a new chapter for India, shaped by both economic and diplomatic imperatives. The 1991 economic reforms sought to integrate India into the global economy, necessitating broader international engagement. The collapse of the Soviet Union removed a key strategic partner, prompting India to diversify its relationships.

In 1992, India launched the Look East Policy, becoming a dialogue partner with Asean to tap into the rapidly growing economies of Southeast Asia, including the so-called “Asian Tigers.” That same year, India publicly established diplomatic ties with Israel, ending decades of quiet cooperation.

However, the decade’s progress was disrupted in 1998 when India conducted nuclear tests in Rajasthan. The US responded with sanctions and Pakistan soon carried out its own tests pushing the region to dangerous levels of tension.

The 2000s: Strategic reset and multilateral engagement

Entering the 2000s, India faced a precarious situation—two nuclear-armed neighbours, no superpower ally and a sanctioned economy. Diplomacy in this era focussed on two main goals: resetting ties with the US and deepening participation in multilateral forums.

By 2001, most sanctions were lifted. The shared trauma of terrorism—America’s 9/11 and India’s 26/11—brought the two countries closer. This partnership advanced a civilian nuclear deal while also preserving the legacy of non-alignment by engaging with other global players.

In 2006, the foreign ministers of Brazil, Russia, India and China met in New York, laying the foundation for Brics. The group’s first official summit took place in 2009. By the end of the decade, India’s economy was booming and its diplomacy was increasingly diversified.

The 2010s: Expanding influence

The 2010s proved that India could seize global opportunities. Strategic partnerships were signed with 14 countries, including Israel, UAE, Japan, South Korea, Uzbekistan and Tajikistan.

At the same time, rivalry with China deepened. Under President Xi Jinping, China pursued regional dominance, leading to the 2017 Doklam standoff, where Indian and Chinese troops faced off for more than 70 days.

Today, India’s foreign policy vision is to be a Vishwabandhu—a friend to all. The country has shifted from non-alignment to multi-alignment. It participates in the Quad with the US, remains a founding Brics member alongside China, attends G7 summits and leads the Global South.

India can build ports in Iran, buy weapons from Israel, acquire warships from Russia and still visit Ukraine to call for peace. This new approach—be in every room, but stay in your corner—marks a significant shift from earlier decades.

Economic strength as diplomatic backbone

One crucial factor behind this transformation is reduced foreign dependence. In the 20th century, India’s independent foreign policy was constrained by economic weakness. Today, the reverse is true.

India no longer relies on foreign aid; instead, it is a global donor. Since 2000, it has provided over $48 billion in assistance to 65 countries. During the Covid-19 pandemic, India acted as the “pharmacy of the world,” sending vaccines to 160 countries. In its neighbourhood, it is the first responder to disasters—from earthquakes to tsunamis to pirate attacks.

From doubt to hope

In 1947, the world viewed India with scepticism. Today, it looks toward India with hope. The nation was non-aligned before it was fashionable, now it is multi-aligned because it is wise. The chapters yet to be written in India’s diplomatic history promise to be as riveting as the story so far.