India hosts the world: How foreign policy has evolved under PM Modi

In his third term as Prime Minister, Narendra Modi's foreign policy has entered a phase marked by strategic consolidation, institutional maturity, and functional prioritisation.

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No longer focused on optics or diaspora mobilisation, India's global engagements are now driven by trade agreements, defence supply chains, and digital partnerships that align with long-term national interests.

PM Modi's recent visits to the United Kingdom and the Maldives in July 2025where he signed a landmark Free Trade Agreement with Britain and led a diplomatic reset with President Muizzu-are not isolated events, but part of a calibrated shift. "We're not the ones trying to get into the room anymore. We are hosting the room," said a senior MEA official, encapsulating a decade-long evolution that has seen India move from the periphery to the centre of global decision-making.

The long-awaited IndiaUK Free Trade Agreement has been described by British officials as the UK's most comprehensive trade pact since Brexit. Since 2021, India has signed five Free Trade Agreements (FTAs) or equivalent trade pacts to bolster economic ties with key partners. These include the India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) signed in 2021, the India-UAE Comprehensive Economic Partnership Agreement (CEPA) in 2022, and the India-Australia Economic Cooperation and Trade Agreement (ECTA) also in 2022.

Additionally, India signed the India-EFTA Trade and Economic Partnership Agreement (TEPA) in 2024 with Iceland, Liechtenstein, Norway, and Switzerland, followed by the India-UK Free Trade Agreement in 2025.

These numbers become more significant considering that before this, India had seven full-fledged trade agreements in force.

These included bilateral pacts with Sri Lanka, Singapore, South Korea, Japan, Malaysia, and regional agreements such as the India-ASEAN FTA and SAFTA (South Asia Free Trade Area). The India-Bhutan Trade Agreement, though technically a trade and transit treaty, is often included in this list due to its broad economic provisions and long-standing implementation framework.