From Tariffs to Neighborly Ties: 5 Major Challenges India Faces in the New Year

2025 has been one of India’s most diplomatically challenging years in recent memory, with events ranging from hosting BRICS to navigating complex regional relationships. As the year closes, several pressing questions remain unanswered, setting the stage for significant challenges in 2026.

1. A Pivotal Year for BRICS
India is set to host the BRICS summit in 2026, marking one of the largest diplomatic events the country has ever organized. The government aims to make it as grand and comprehensive as the G20, sending a strong message to the global community about India’s growing international stature and strategic vision.

2. Strengthening Ties with Neighbors
The upcoming elections in Bangladesh and Nepal will be crucial for India. Ensuring peaceful power transitions in neighboring countries remains a priority. Beyond these nations, India’s relationships with other neighbors will also be vital in shaping regional stability and cooperation in 2026.

3. The Challenge of Narrative Warfare
India has recognized the rising importance of narrative warfare in global diplomacy. As the world increasingly engages in information and perception battles, India will need to strengthen its strategic communication and public diplomacy to safeguard its interests and assert influence. Experts note that narrative management has now become an essential component of modern diplomacy.

4. Maintaining Global Balance
Whether addressing conflicts in West Asia or the ongoing Ukraine crisis, India has consistently pursued dialogue and diplomatic engagement. In 2025, Prime Minister Modi’s visit to Russia reaffirmed historic ties, while efforts were made to explore new economic and trade partnerships with the EU and European countries. Managing global balance amid geopolitical tensions remains a continuing challenge.

5. Navigating India-US Relations
India-US relations faced perhaps their most uncertain period this year, marked by trade negotiations, visa complexities, and shifting diplomatic signals. With President Trump’s unpredictable statements and the postponed QUAD summit, India must prepare for continued strategic navigation in 2026 to stabilize and strengthen ties with its key ally.

As India steps into 2026, these five areas—global diplomacy, regional relationships, narrative strategy, geopolitical balance, and US relations—will shape the country’s international trajectory and influence its role on the global stage.