The recent SCO Summit has once again highlighted India’s tricky diplomatic balancing act—managing tensions with China while keeping its strategic partnership with the United States intact. Prime Minister Narendra Modi’s hour-long meeting with Chinese President Xi Jinping on the sidelines of the summit in Tianjin drew headlines, but it did little to address the deep-rooted structural challenges in India-China relations.
At the same time, New Delhi finds itself caught in trade disputes and energy disagreements with Washington. Yet, unlike China, the India-US relationship is built on stronger economic, technological, and strategic complementarities. The key challenge for India is to not inflate the prospects of better ties with China, nor underestimate the long-term benefits of its partnership with America.
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India-China Relations: Hope vs. Reality
Over the years, Indian leaders have often spoken about the potential for Asian solidarity, partnership with China, and “strategic autonomy.” But reality paints a different picture.
- Border disputes remain unresolved, with deadly clashes in 2013, 2014, 2017 (Doklam), and 2020 (Galwan).
- The trade deficit tilts heavily in Beijing’s favor, with India facing an annual shortfall of nearly $100 billion.
- China’s all-weather partnership with Pakistan continues to shape India’s strategic environment. Recent military aid to Rawalpindi further reinforces that alignment.
- Beijing shows little willingness to address India’s concerns over the China-Pakistan Economic Corridor (CPEC) or cross-border terrorism.
Modi’s meeting with Xi at the SCO Summit, while cordial, did not—and could not—resolve these deep-rooted issues.
India-US Relations: More Than Just Trade Disputes
Unlike China, the United States poses no territorial threat to India. Instead, it is India’s largest export market and a natural partner in science, technology, and defense cooperation.
Yes, recent disputes—particularly over India’s oil imports from Russia and certain tariff issues—have strained the conversation. The Trump administration’s pressure tactics made negotiations difficult. However, it’s worth noting:
- India runs a trade surplus of around $40 billion with the US, unlike the massive deficit with China.
- Shared goals in the Indo-Pacific strategy and in building a multipolar Asia bind the two democracies together.
- Collaboration in areas like clean energy, digital technology, and defense manufacturing is already showing results.
The noise around trade disputes should not mask the real strategic convergence between India and the US.
The SCO Factor: What Modi’s Message Meant
At the SCO Summit, Modi made it clear that India would not soften its long-held positions just to please Beijing. His speech reiterated:
- India’s opposition to the Belt and Road Initiative (BRI), especially due to sovereignty concerns linked to CPEC.
- Firm rejection of state-sponsored terrorism, a veiled criticism of Pakistan and China’s unwillingness to call it out.
- The need for peaceful and respectful resolution of border disputes.
These points underline that despite engaging diplomatically, India is not compromising on its national interests.
Why India Must Rethink Its Balancing
India’s foreign policy elite have often overestimated the possibilities with China while undervaluing the scope of ties with the US. This imbalance has historical roots but continues to echo in today’s diplomacy.
The SCO Summit has exposed this contradiction yet again: warm gestures with Beijing mask underlying hostility, while public disagreements with Washington sometimes overshadow the depth of shared interests.
For India, the road ahead requires a sharper assessment:
- Engage China pragmatically but with caution.
- Strengthen the US partnership as a cornerstone for economic growth and regional stability.
- Avoid the trap of viewing diplomacy as a zero-sum game between Beijing and Washington.
SCO Summit: India’s Tightrope Diplomacy
The SCO Summit has shown that India’s diplomacy must walk a tightrope. While China will remain a difficult neighbor requiring constant negotiation, the US is a partner with whom India can shape a stable Asian order. New Delhi’s challenge is not to be blinded by wishful thinking about China, nor to let short-term trade disputes cloud the bigger picture with Washington. India’s smart diplomacy lies in balancing firmness with China and deepening trust with the US.
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