Many in the Global South as well as key South Asian allies—including Nepal and Sri Lanka—are closely observing India’s approach towards macroeconomic stability. How India moves forward in the months and years to come will signal whether it emerges as a resilient regional rule-shaper or a reactive follower in the evolving financial system.

Clinging to the narrative of “strategic autonomy” while doubling down on a partner facing escalating global condemnation will not safeguard India’s sovereignty. Instead, it risks compromising India’s diplomatic standing and economic resilience.

A sharp 60% drop in Chinese rare earth exports this April disrupted Indian electric vehicle manufacturing—highlighting just how brittle alternative supply routes still are. Despite diplomatic friction, India lacks the industrial depth to delink quickly from China