03 November 2026

India’s Foreign Policy transformed after USSR collapse

Prof. Anil Vaidya

USSR was India’s friend, a state India depended on for all help. For decades USSR helped India on many fronts, military, technology, agricultural improvement etc. Gorbachev came to power in 1986 and started earnestly implanting reforms. He was ardent advocate of anti-alcohol campaign, in a country where Vodka consumption was part of culture. His introduced reforms starting from perestroika, the economic reforms, dismantling central state-controlled economy, then Glasnost, the freedom of expression, to the Demokratizatsiya, the multiple candidates contesting election. Ultimately reforms backfired, supply-chain collapsed, shortages, inflation set in. Vodka tax revenue shrank.

In 1970’s India had leaned towards USSR, following its socialist ideology. The dependence of USSR increased with more help coming. In 1971 India and USSR signed The Treaty of Peace, Friendship and Cooperation. It cemented strong relationship between two countries. India received low-cost loans from USSR over number of years. Relationship with USSR was major strategic Anchor of India’s foreign policy.

During August Coup of 1991 of hardliners Gorbachev was confined for 60-72 hours without any communication with the outside world. He was in Crimea at his vacation home. The coup failed, Boris Yeltsin gained power having refused to join hardliners. India’s response was guarded, troubled. Indian Congress ideology was socialism derived from USSR, it felt orphaned strategically and economically

Powerful USSR was no more, the bipolar world became unipolar, leaving USA as the only powerful state. The cold war also came to an end. The 1991 collapse of the Soviet Union led to redrawing of international strategic equations for India. The emergence of a “unipolar” world encouraged a radical rethink in India, shifting focus to safeguarding strategic autonomy.

While India was aligning with USSR, the US the second powerful state was in nexus with China and Pakistan. After the USSR collapse India lost its trusted partner; while two no-so-friendly neighbours had better relations with West. India had to reorient itself towards West to get out of economic trough. Manmohan Singh’s New Economic Policy of 1991 started changing economic scene. The reorientation of foreign policy was a direct consequence of the reorientation of the economy and loss of trusted USSR.

Delhi became more receptive to exploring other possibilities for engagement with the West and China as major markets and sources of technology. Thus, began fundamental transformation in India’s foreign policy. Today’s multi-alignment is a far cry from policies of 70’s and 80’s.

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About the faculty

Anil V. Vaidya

Anil V. Vaidya

Prof. Anil Vaidya holds a Doctor of Business Administration from the University of Bradford, UK. His dissertation was in Information Systems and Technology Strategy. He has pursued his MBA from the University of Akron, Ohio, USA. He has more than 45 years of overall experience, with 35 years of industry engagement in senior IT management and leadership roles.

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