Allies of the U.S. — Japan, South Korea, Taiwan and Australia — are among the countries that are trying to diversify their economies away from dependence on China, whose export-oriented industries are likely to be hurt by the trade war, and are turning toward India.
Asian countries “do not have the luxury of continuing with their traditional approach,” said Harsh Pant, a distinguished fellow at Indian think tank, Observer Research Foundation. “They need other actors like India, which has been highlighting its credentials as a responsible security and economic partner.”
In July, Australia announced an ambitious “India Economic Strategy“ in which it says, “There’s no single major market out to 2035 with more growth opportunities for Australian business than India.” By 2035, Australia hopes to make India one of its top three export markets and the third biggest Asian destination for outward investment.
Last year, South Korean President Moon Jae-in introduced a blueprint for his Southern Policy focused on deepening ties in the that direction. India will be “key partner for cooperation.” Japanese Prime Minister Shinzo Abe has committed to making India a pillar of his Indo-Pacific blueprint, which promotes infrastructure investment and development in Asian and African emerging markets. As part of President Tsai Ing-wen‘s New Southbound Policy, 2016, Taiwanese companies such as Foxconn, have invested in India.
India will need to ramp up its economic and security engagement with other countries in the region, since China is far ahead on both fronts, Pant cautioned.
Last updated: December 26th, 2025
