Strategic Multilateralism and Great Power Competition in the Indo-Pacific

By Harshita Upadhyay

The Indo-Pacific has become the most significant geopolitical and geo-economic region of the 21st century. Stretching from the eastern coast of Africa to the western Pacific Ocean, the region accounts for more than 60% of the global GDP and almost half of world trade. The important maritime chokepoints, namely, the Malacca Strait and the South China Sea region, are central to the world's energy security, trade, and supply chains. Thus, the Indo-Pacific is now a significant theatre of strategic competition, economic interdependence, technological rivalry, and diplomacy.

A central theme of this shift is the US-China rivalry and strategic competition. The United States advocates a 'Free and Open Indo-Pacific’ (FOIP), and China is seeking its expansion through its encirclement by the Belt and Road Initiative (BRI). Naval modernization, freedom of navigation, territorial disputes, grey-zone warfare, and the growth of strategic alliances are accelerating the militarization of the Indo-Pacific.

In addition to military competition, the region is also experiencing a ‘New Tech Cold War’ due to “chip-war” politics and ‘intelligentised warfare’, where semiconductors, artificial intelligence, 5G infrastructure, and digital technologies are emerging as key economic and strategic tools. It has the potential to create new technoblocks – coalitions of states following different digital ecosystems and standards – that could pose a threat to each other's coexistence.

The Indo-Pacific is no longer just a geographical area but a geo-economic field of competing spheres of influence. Multilateral platforms are becoming instruments of power and strategic balancing for states. Regional multilateral forums, such as the Quadrilateral Security Dialogue (QUAD), ASEAN, BRICS, and the India-Middle East-Europe Economic Corridor (IMEC), have emerged as significant platforms for advancing economic, technological, and security interests. This reflects the trend of strategic multilateralism, in which institutions become platforms for cooperation and arenas that influence regional order.

In this context, there is a crucial difference between multilateralism and multi-alignment. Multilateralism is the cooperation between multiple states, characterized by shared values, collective problem-solving, and a rule-based international order. In contrast, multialignment is a foreign policy approach that involves countries' interactions with multiple powers without falling into rigid alliance systems. Multi-alignment is different from politics during the Cold War, as it enables states to have strategic autonomy and work on issue-based partnerships.

Although there are many differences, both approaches have some similarities as follows. They advocate diplomacy, cooperation, connectivity, and institutional engagement to tackle global issues such as maritime security, climate change, economic resilience, and technological governance. However, multi-alignment is more pragmatic and interest-based, while multilateralism is based on collective norms and institutional regimes.

India is one of the strongest practitioners of multi-alignment strategies. With regard to strategic autonomy, the Ministry of External Affairs (MEA) adopts a multi-track strategy of engaging

with several powers without compromising its strategic autonomy. India is a member of QUAD with the USA, Japan, and Australia, and is actively involved in BRICS, ASEAN, the Shanghai Cooperation Organisation (SCO), and European countries. This reflects India's strategy to avoid "binary" alignment and engage in the Indo-Pacific on the terms of its security and development concerns.

The external affairs minister S. Jaishankar in ‘Why Bharat Matters' argues that India must engage the world “on its own terms.” He emphasized that “India seeks partnerships, not dependencies,” highlighting India’s de-hyphenation policy, where relationships with different countries are pursued independently according to national interest rather than through zero-sum rivalries.

Economic and connectivity diplomacy are linked to India’s Indo-Pacific strategy. The India-Middle East-Europe (IMEC) Economic Corridor is a multimodal and digital initiative designed to link India, the Middle East, and Europe. The initiative is seen as an alternative to China's BRI and India's attempt to diversify connectivity and build resilient trade networks.

Despite these opportunities, challenges are inherent to the Indo-Pacific region. Militarization and naval competition pose a threat of conflict, particularly in the South China Sea and Taiwan Strait. Global supply chains and economic stability are at risk due to trade wars and chip wars. Smaller states have a harder time being strategic and autonomous in a world of competing spheres of influence. Additional challenges to regional governance include climate change, maritime insecurity, piracy, and humanitarian crises.

However, there is vast potential for strategic regional multilateralism. The Indo-Pacific provides opportunities for diversifying the supply chain, infrastructure connectivity, trade expansion, and digital innovation. There is a growing trend among these countries to work together in domains such as supply chain cooperation for semiconductors, renewable energy, cybersecurity, digital infrastructure, climate resilience, disaster management, and humanitarian assistance. Projects like the IMEC aim to link India, the Middle East, and Europe via ports, railways, and digital networks.

Countries are working together technologically in areas such as semiconductors, 5G networks, renewable energy, and cyber security. India focuses on the IndiaAI Mission, Design Linked Incentive (DLI) scheme, and Semicon India Programme for an enhanced semiconductor manufacturing ecosystem and supply chain. In addition, the region has become a place for collaboration to build climate resilience, marine ecosystems, and disaster management. Another significant domain of cooperation is medical supply chains and disaster relief.

Dr. Jaishankar has consistently emphasized the need for the “3Cs” – Connectivity, Commerce, and Contacts – for regional prosperity. All three must work together to strengthen cooperation, trade integration, technology cooperation, and people-to-people ties in the Indo-Pacific. Balanced engagement and cooperation of middle powers like India, Japan, Australian States, and ASEAN countries could help build a more inclusive regional architecture and contain power competition.

In conclusion, strategic multilateralism in the Indo-Pacific is a sign of a shift in world politics from rigid alliances to flexible and pragmatic partnerships. The region is currently an important theater of military rivalry, economic interest, technology, and diplomacy. India's strategy of multi-alignment emphasizes 'Strategic Autonomy'. Competition and cooperation through connectivity, commerce, and contacts will be the determining elements of the future of the Indo-Pacific. 

Harshita Upadhyay is currently pursuing her MA in Development Studies from Tata Institute of Social Sciences, Mumbai. The views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect the views of Kalinga Institute of Indo-Pacific Studies.