LONDON: Britain’s Telegraph has reported that India is experiencing heightened economic and diplomatic challenges during Prime Minister Narendra Modi’s current term, pointing to investor sell-offs, rising external pressure and stalled foreign policy initiatives.
The newspaper said recent developments, including heavier US trade measures and India’s reduced role in the Chabahar port project, underline growing constraints on New Delhi’s regional ambitions.
According to the report, foreign institutional investors have trimmed exposure to Indian markets, while tighter US immigration and trade policies have added pressure on India’s economy and overseas workforce.
The Telegraph also highlighted India’s widening trade imbalance with China, noting that the deficit has climbed above $116 billion, adding strain to New Delhi’s external accounts.
Separately, the paper cited delays in assisting Indian nationals affected by the Russia–Ukraine conflict and Iran’s reported restrictions on access for Indian maritime personnel as further examples of diplomatic headwinds.
Analysts quoted by the newspaper said India’s projection of regional leadership is being tested by economic realities and shifting geopolitical dynamics, with international pressure increasingly shaping New Delhi’s policy choices.
The Indian government has not publicly responded to the report.


