India’s foreign policy for 2026 is becoming more proactive as well as more interested based. The changes in the global landscape include a decline in the power of multilateral institutions, the transformation of global trade into a transactional system and a restructuring of global supply chains and technology based on geopolitical competition. In this changing environment, India will need to place greater emphasis on developing long-term structural priorities rather than simply reacting to every crisis or opportunity that appears. Four primary areas of focus are likely to be of central importance for India’s long-term rise: strategic space capabilities; trade realism via the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); creation of an independent (neutral) pole in global politics; and securing critical minerals for industries of the future.
1) Strengthen strategic space capability
India’s space industry has experienced several reforms in recent years. The opening of the Indian Space Policy 2023 to private corporations and the decrease in the manufacturing role of ISRO, along with supporting global investment in satellite parts, have yet to create the commercial momentum anticipated by these reforms.
The relatively small launch capacity of India when compared to the many global launch providers who provide high-frequency services.
- The lack of legal clarity regarding private investment via IN-SPACe.
- The limitation of 49% FDI on launch vehicles has created significant barriers for large private launch facilities.
- India suffers from the increasing brain drain of its engineers, as they migrate to global space companies for work.
India is one of the top three global space powers, but it still only accounts for approximately 2% of the total global space market; therefore, the goal for India to achieve 10% of the space market by 2033 will remain a long shot unless immediate reforms take place. Moreover, the increasing importance of the satellite networks in modern warfare will continue to create national security threats unless India is able to quickly build satellites and provide many high-volume launch options.
Steps India must take by 2026 include:
- Provide legislative support to permit reforms in space to guarantee certainty in policy.
- Implement a Space PLI Scheme to support manufacturing hardware domestically.
- Provide government-backed venture capital funding to support startups.
- Create private launch zones to increase launch frequency and capacity.
It is crucial for India to protect the strategic advantage of being the first country in space, as it relates to both national security and an opportunity for continued growth in their economy.
2) Embrace trade realism — especially through CPTPP
Neglecting free trade initiatives for several years to safeguard against manufacturing, India has revived free trade purports now that worldwide impasse’s are rising. Agreements reached with Australia, United Kingdom, UAE, and EFTA show increased confidence, while discussions between USA and E.U. are ongoing.
While multilateral trade frameworks are disintegrating, mitigating risk with developing regions should be the primary means to secure access to the global trade network. India successfully insulated its manufacturing sector by exiting RCEP in 2019, due to concerns about overexposure to Chinese competition, but must find other avenues going forward. India took a pro-active approach and entered into bilateral FTAs with nearly every member of the RCEP — while still blocking entry of China.
Next logical step is to explore entry in CPTPP — the “highly accredited regional trade union” that is currently closed to China, and aligns with the strategic interests of the Indian Government. Joining CPTPP would provide:
- Increase access to competitive substitutes for manufacturers in foreign markets,
- Attract high-tech trade investments in India
- Facilitate India’s role in the China-plus-one supply chain.
By 2026, India will have to choose whether to open their market to new avenues in Trade or to whom. Selecting CPTP would indicate that India is a trade confident nation and position it for sustained future involvement in global trade networks.
3) Act as a neutral pole in a multipolar world
The foreign policy of the Republic of India has become increasingly characterised by “strategic autonomy” — a form of cooperation that does not create an excess of dependency. The BRICS bloc will be led by India in 2026, creating an opportunity for India to play a defining role in establishing the direction of the BRICS group during a time when there is increased competition between the US and China.
India can leverage its role as president of BRICS to:
- Limit the growth of the Chinese economy, which has dominated the BRICS group, by encouraging consensus among BRICS members to engage in transactions using their own national currencies (instead of the Chinese Yuan), and
- Encourage continued engagement with Russia to reduce its reliance on China.
- Demonstrate to the US that it is an autonomous country while at the same time maintaining cooperation in defence and technology.
- Focus greater attention on the Global South with issues such as climate change and digital public infrastructure.
At the present time, India is in a unique position; it is able to communicate with and operate with both Washington, Moscow, and Beijing while avoiding being beholden to any of them. India’s role as a neutral third party enhances India’s leverage in creating global rules and ensures that other countries will not define India’s interests for it.
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4) Secure critical minerals for industrial and defence needs
Lithium, cobalt, rare-earth elements, and thorium transition the global economy from oil to mineral resources and are becoming critical to semiconductor production, electric vehicles, military and defense systems, and green hydrogen production. Almost 90% of the processing of this critical material is performed by China through its dominance of the global lithiation/refining market.
India’s dependence on imported critical material impacts the nation’s technological autonomy and strategic capability. Therefore, the country must develop a national critical mineral mission to develop indigenous resources to produce critical minerals and expedite development of mining and extraction techniques, particularly with trusted partners like Japan. Combining Indian resources with Japanese engineering and process expertise will enable India to develop both scale and sustainable ways to extract, refine, and eventually manufacture products utilizing these resources.
India also must create deeper mineral alliances through groupings like the Mineral Security Partnership (MSP) to assure supply chains are insulated from the impacts of the geopolitical environment.
Why these priorities matter
The four priorities share a common thread in their aim to lessen India’s strategic vulnerabilities. Space strengthens India’s technological sovereignty while the CPTPP increases competitive access to the global market. The strategic neutrality of India allows it to retain autonomy, and mineral security protects India’s industrial growth.
The year 2025 redefined the way Indian Foreign Policy will be viewed in the future, while 2026 will determine if it is possible for India to leverage its ambitions and convert them into a viable form of power. A nation’s power derives from the ability to focus rather than react to events. Consequently, the world’s shifting alliances and the absence of dependable rules will eventually determine which of the world’s major powers remain focused – and thus create an upward trajectory towards majordom.
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