India

Abstract

The post-neoliberal system is characterised by transactional diplomacy, bilateralism, and pragmatism, rather than ideology. Therefore, the term "Cold War" is insufficient for understanding today’s international political economy. Additionally, the emergence of the capitalist mode of production in a post-neoliberal and neorealist paradigm has eliminated ideological divides in the contemporary world. A new aspect of neorealism involves using economic sanctions to influence a country’s foreign policy. This approach intertwines economic sanctions and trade negotiations, where the terms of trade discussions are often held hostage to both real and perceived threats of sanctions by major powers. China’s dominance in the integrated supply chain, alongside the large domestic market of the United States, drives an aggressive trend toward the explicit weaponisation of economic dependency. This dynamic promotes bilateralism as the new norm in international relations. To effectively navigate the challenges posed by the US and China, India must adopt a strategy of transactional diplomacy and pragmatism, rather than clinging to an outdated Cold War mentality. Furthermore, India should diversify its free trade agreements (FTAs), as sovereignty and strategic autonomy are grounded in diversification rather than mere substitution in today