India in the Indo-Pacific: VCE Politics Unit 4

What this dot point is asking

If your teacher selects India, you need its sources and forms of power, national interests, use of instruments, effectiveness, challenges, consequences and contribution to stability and change. Check for updates, as trade and security events moved fast in 2025 and 2026.

The answer

Sources and forms of power

• Economic. A very large and fast-growing economy with a vast domestic market and a growing services and technology sector.
• Military. A large armed force with nuclear weapons and a growing navy, with a focus on the Indian Ocean.
• Diplomatic and political. A leading voice for the Global South; member of the Quad, BRICS (a group of major emerging economies) and the Shanghai Cooperation Organisation (SCO); host of the 2023 G20.
• Cultural. A large diaspora, cultural reach and democratic identity.

National interests

• Security. Land borders with China and Pakistan. A deadly clash with Chinese troops in the Galwan Valley in June 2020 worsened relations, and in May 2025 India and Pakistan fought a short military confrontation. In October 2024 India and China reached an agreement on patrolling arrangements, and Prime Minister Modi attended the Shanghai Cooperation Organisation summit in Tianjin in August to September 2025, signalling an attempt to stabilise relations.
• Economic prosperity. Growth, jobs, energy and market access.
• Regional relationships. "Strategic autonomy": cooperation with the Quad partners and the United States, while keeping ties with Russia, and engagement with ASEAN and the Indian Ocean neighbours.
• Regional standing. Recognition as a major power and a leader of developing states.

Instruments and recent actions

• Trade and economic diplomacy. In August 2025 the United States raised tariffs on India to 50 percent, including a 25 percent penalty linked to Russian oil purchases. On 2 February 2026 the two announced a trade deal cutting the rate to 18 percent and removing the Russian oil penalty from 7 February. The United States said India had committed to stop importing Russian oil and to buy more United States energy and goods, while India's government did not publicly confirm a full halt. On 20 February 2026 the United States Supreme Court ruled that the law used for these tariffs (the International Emergency Economic Powers Act) does not authorise tariffs, so check the current rates and legal basis.
• Diplomacy. Participation in the Quad, the SCO and BRICS shows balancing.
• Aid and development. Development finance and lines of credit to neighbours and in the Indian Ocean region.

Challenges

The border with China, rivalry with Pakistan, infrastructure gaps, dependence on imported energy, and the tension between partnership with the United States and relations with Russia and China.

Effectiveness and consequences

India has widened its partnerships and secured improved market access, but the 2025 tariff episode showed limits to autonomy. For other actors, India's balancing means the Quad cannot be assumed to be an alliance, and China must consider India's capability and interests in the Indian Ocean.

Worked example

Question. Analyse one challenge to India's national interests.

Model answer. India's interest in energy security led it to buy large volumes of Russian oil, but this drew a 25 percent additional tariff from the United States in August 2025. In February 2026 the United States said India had committed to stop buying Russian oil as part of a trade deal that removed the penalty, although India did not publicly confirm a full halt. The challenge arose because pursuing energy and autonomy interests undercut its economic interest in access to the United States market.

Try this

Q1

What is strategic autonomy? Model answer: A policy of keeping independence in foreign policy by cooperating with several major powers without formal alliance.

Q2

Identify one grouping India belongs to that includes the United States and one that includes China. Model answer: The Quad includes the United States; the SCO and BRICS include China.

Q3

Explain one consequence of India's balancing for the United States. Model answer: Washington cannot rely on India as an ally, and it used tariffs to pressure it over Russian oil.