GEOPOLITICS SPECIAL: Former MEA Secretary On India-US Relations, Pakistan's Decline & Bangladesh

The breakup of the Soviet Union in 1991 was a game-changer for India, shaking up its economy, defence strategy, and foreign relations.

For years, the USSR had been India’s largest trading partner, pumping in vital support through the rupee-ruble trade agreement.

This wasn’t just any partnership—the Soviet Union helped India build industries like steel, oil, and coal, and set up big enterprises like ONGC and BHEL.

By 1991, trade between the two nations hit a solid $5 billion a year.

But then, December 25, 1991, arrived, and the Soviet Union collapsed.

Trade with Russia and former Soviet states dropped by over 60%, creating a huge gap in India's economy.

The end of the rupee-ruble trade forced India to use hard currency for imports.

In fact, things got so bad that India had to pledge 67 tons of gold to the IMF to secure a loan.

It was a wake-up call that Soviet-style socialism wasn’t working anymore.

That’s when India’s policymakers launched significant economic reforms in 1991.

The reforms opened India to foreign investment, reduced government control, and launched economic liberalisation.

The defence sector, reliant on the USSR for over 70% of its hardware, was hit hard as the supply chain was cut off.

India had to rethink its defence strategy quickly, diversifying its military imports while continuing to rely on Russia.

But with the Soviet Union gone, India built stronger ties with the US and Western nations, while maintaining relations with Russia. This gave India flexibility in a multipolar world, engaging with global forums like BRICS, SCO, and the G20.

While the USSR’s collapse seemed like a disaster at first, it actually pushed India to evolve—fast.

It led to the reforms and new partnerships that have fueled India’s growth and success.

In this episode of The NEON Show, a former diplomat with a 36-year career in the Indian Foreign Service, Rajiv Sikri examines India’s complex ties with neighbouring countries exploring issues like Kashmir, economic interdependence, and political dynamics. He also sheds light on the impact of global powers, especially the US and China, on India’s strategic choices.

Check out Rajiv Sikri’s book Strategic Conundrums: Reshaping India's Foreign Policy: https://www.amazon.in/Strategic-Conun...
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00:00 - Trailer
02:27 - Host Siddharth Ahluwalia introduces The Neon Show
03:10 - Pakistan, Bangladesh, Afghanistan
07:33 - Pakistan's ties with the West, China, and the military's role
11:07 - Kashmir conflict and India-Pakistan relations
14:33 - Pakistan's internal political dynamics
17:51 - Bangladesh's identity and India relations
20:27 - India-Bangladesh economic interdependence
28:33 - India’s strategic geographic position
32:19 - India’s foreign policy after the Berlin Wall’s fall
36:07 - Economic impacts and India-US relations
40:19 - US-Russia relations and the Ukraine conflict
44:39 - Russia-Ukraine war’s effect on India
50:43 - US dominance and unilateral actions post-1989
54:31 - Challenges to US hegemony
58:27 - India-US relations amidst strategic concerns
1:03:47 - BRICS and global multipolarity
1:07:07 - Dollar dependency and US financial power
1:10:47 - Concluding thoughts on India’s foreign policy
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Hi, I am your host Siddhartha! I have been an entrepreneur from 2012-2017 building two products AddoDoc and Babygogo. After selling my company to SHEROES, I and my partner Nansi decided to start up again. But we felt unequipped in our skillset in 2018 to build a large company. We had known 0-1 journeys from our startups but lacked the experience of building 1-10 journeys.

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This video is for informational purposes only. The views expressed are those of the individuals quoted and do not constitute professional advice.