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India’s Balancing Act: Navigating the AI Landscape Between US and China

February 21, 2026
in World
Reading Time: 5 min

In a rapidly evolving global landscape where the United States and China are locked in a fierce competition to dominate artificial intelligence, India is stepping forward with a compelling vision for those nations feeling left behind.

Unlike the US, which boasts AI powerhouses like OpenAI and Anthropic, or China, with its advanced technological expertise and abundant rare earth resources vital for AI hardware, India offers a different path.

India is strategically leveraging technology as a foreign policy instrument, positioning itself as a moral compass and advocate for the smaller, developing countries of the Global South. Many of these nations simply lack the resources to contend with the burgeoning “AI superstorm” reshaping the world.

This week, at the bustling AI Impact Summit in New Delhi, attended by leaders from diverse countries such as Spain, Bolivia, Mauritius, and Sri Lanka, India underscored critical questions surrounding AI governance and its potential for societal well-being. The nation also highlighted its vast pool of skilled IT professionals and immense domestic market, presenting itself as an ideal testing ground for new AI applications.

During his address, Indian Prime Minister Narendra Modi drew a powerful parallel between artificial intelligence and nuclear power. Both, he asserted, possess immense destructive potential but can also be harnessed for profound good. Modi warned that “directionless” AI could lead to global devastation, emphasizing that the focus should not be on future capabilities, but on how AI can serve humanity right now.

Observers widely interpret Modi’s stance as a shrewd move to maximize India’s influence, particularly given that, like many participating countries, India doesn’t hold a dominant position in the AI race currently led by American and Chinese tech giants.

Sushant Kumar Yaduka, an academic at the Jindal School of Government and Public Policy, noted, “India is trying to position itself as a distinct, third-way alternative, centered on the Global South and A.I. as a public good.” He added that this approach is far more logical for India than attempting to join the “geopolitical-technological arms race” between China and the United States.

Set against a backdrop of significant shifts in global power dynamics, with nations scrambling to secure their interests and forge new alliances following past disruptions, the intersection of technology and international relations was undeniable.

“You can’t think of foreign policy without thinking of technology,” remarked Arun Teja Polcumpally, a JSW Science and Technology Fellow at the Asia Society Policy Institute. He elaborated that “India is trying to show it is a country that can be a trusted platform for emerging economies” by proactively establishing the framework for responsible AI deployment.

A striking image from the summit captured a humanoid robot gracefully dancing before an captivated audience in New Delhi. Another significant moment showcased Prime Minister Narendra Modi alongside President Luiz Inacio Lula da Silva of Brazil and President Emmanuel Macron of France, among other world leaders, at the AI Impact Summit on Thursday, signaling India’s prominent role on the global stage.

India is also expertly using this moment to strengthen ties with other “middle powers,” forging stronger trade relationships and garnering support for its broader global aspirations, analysts pointed out.

For instance, separate bilateral discussions between Prime Minister Modi and French President Emmanuel Macron, held concurrently with the AI summit, led to reinforced defense cooperation. This includes a clear path for India to acquire 114 Rafale fighter jets from France’s Dassault Aviation. The Indian government proudly announced that both nations had elevated their relationship to a strategic global partnership, designed to guide their interactions for decades. Social media buzzed with images of Modi and Macron in warm embraces.

Adding to its diplomatic engagements, India is currently hosting President Luiz Inacio Lula da Silva of Brazil, who arrived in New Delhi for a state visit on Wednesday and is also participating in the extended AI summit. India announced on Saturday that it had deepened trade relations with Brazil in recent months, with agreements to collaborate on diverse sectors including energy, pharmaceuticals, and crucial minerals.

India’s actions at the summit exemplify a core principle of its foreign policy: a modern interpretation of its Cold War non-alignment, now termed “strategic autonomy” under Modi’s leadership. This approach is characterized by India strategically aligning itself with partners whose interests and ambitions best complement its own.

After years of cultivating relations with the United States to act as a counterbalance to China, India found itself in a challenging position due to former President Trump’s demands, particularly regarding the reduction of Russian oil imports. However, this month, India successfully secured an interim trade deal with the United States, which will reduce tariffs from 50 percent to 18 percent. This deal’s future, however, could be impacted by a recent U.S. Supreme Court ruling that invalidated some of Trump’s tariffs. Furthermore, India demonstrated its commitment to global tech governance by signing the Pax Silica Declaration on Friday, joining a US-led initiative aimed at securing AI and advanced computer chip supply chains.

Despite these complexities, India has proactively diversified its international economic portfolio, finalizing several significant trade agreements over the past year, including pacts with the European Union and Britain.

“We are very much wedded to strategic autonomy,” affirmed S. Jaishankar, India’s foreign minister, during a recent panel discussion at the Munich Security Conference. He emphasized that India would continue to chart its own course, stating, “It’s very much a part of our history and our evolution.”

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