India's Strategic Imperative: De-risking from the US and China

Gist The United States Congress has voted for the Lindsey O Graham Sanctioning Russia and Iran Act 2026 , authorising steep tariffs on countries, including India, that purchase Russian energy. This legislative threat, compounding earlier trade frictions, has further eroded the strategic trust established between New Delhi and Washington during the civil nuclear deal era. Consequently, India is adopting a pragmatic foreign policy of 'de-risking' from both the US and China—diversifying its dependencies without attempting the impossible task of completely severing economic ties with either superpower. Background Decoupling and de-risking are distinct geopolitical strategies for managing economic dependencies. Decoupling implies a complete severance of economic and trade ties, a concept briefly pushed by the US administration towards China around 2020 . De-risking, officially articulated by US Treasury Secretary Janet Yellen and National Security Advisor Jake Sullivan in 2023 , involves reducing critical vulnerabilities and diversifying supply chains without dismantling the broader economic relationship. Historically, India’s modern strategic partnership with the US was cemented by the US-India Civil Nuclear Agreement , built on political trust during the George W. Bush administration.…