New Delhi, August 9, 2025: India appears to be facing global isolation following strained relations with two of the world’s major powers. According to a report by The New York Times, in 2014, Indian Prime Minister Narendra Modi rolled out the red carpet for Chinese President Xi Jinping, but during the visit, Chinese troops clashed with Indian forces along the border. The incident not only embarrassed Modi but also forced him to keep Indian troops in a state of war readiness in the freezing border region — a move that significantly impacted the Indian economy.
Years later, Modi shifted focus to warming ties with the United States, risking his political capital to transform relations rapidly. During his first term, he cultivated a close friendship with then-President Donald Trump, even breaking protocol to join Trump’s re-election rally at a packed stadium in Houston. Modi’s confidence in the US-India partnership further grew when the Biden administration overlooked this partisan gesture and continued to expand ties, viewing India as a key ally against China. Last year, Modi even likened US-India cooperation to artificial intelligence during a joint session of the US Congress.
However, that confidence took a blow when President Trump publicly imposed a steep 50% tariff on India, citing its purchases of Russian oil, and declared the Indian economy “dead.” Earlier this year, Trump also angered many in India by treating Pakistan’s leadership as an equal during mediation efforts over the India-Pakistan dispute. These developments have pushed India into reassessing the limits of its global influence, despite its vast and growing economy.
This week, Modi admitted that the trade dispute could cost him politically. His government has intensified efforts to repair ties with Beijing, and for the first time in seven years, he is scheduled to visit China later this month. Yet relations remain tense due to the past border clashes and China’s recent support for Pakistan amid heightened military tensions. Meanwhile, Beijing remains wary of New Delhi’s bid to position itself as an alternative manufacturing hub to China.
