India’s Post-Liberal Order Era Begins
The Council on Foreign Relations (CFR) report argues that the erosion of the post‑World War II liberal international order is reshaping the bilateral relationship between the United States and India.
Source: Council on Foreign Relations · September 29, 2026 at 4:32 AM · AI-assisted report
Opinion
NEW DELHI, 29 SEPTEMBER 2026 —
The Council on Foreign Relations (CFR) report argues that the erosion of the post‑World War II liberal international order is reshaping the bilateral relationship between the United States and India.
Market Impact
The authors write that both democracies now operate in a patchwork of smaller orders that are sometimes durable and sometimes transactional.
India’s skepticism of the liberal order dates back to its 1947 independence, when its leaders rejected the United Nations, World Bank and International Monetary Fund as Western‑centric institutions. The report cites Jawaharlal Nehru’s commitment to formal non‑alignment as the foundation for India’s reluctance to join the U.S.‑led bloc.
The partnership only began to coalesce in the 2000s, driven by mutual concerns over China rather than a shared belief in liberal norms, according to the CFR analysis. The authors note that the election of Donald Trump in 2016 marked a turning point because his “America‑First” agenda openly challenged free‑trade and multilateralism.
On defense, the report says U.S. demands for technology‑transfer safeguards clash with India’s desire for greater autonomy in defence procurement. In trade, India’s long‑standing protectionism meets the United States’ new tariff regime, forcing New Delhi to reconsider its historic reluctance to sign free‑trade agreements. Climate and energy cooperation is hampered by divergent policies, the authors observe, as the United States pulls back from green‑energy commitments while seeking to control the global crude market.
Both countries remain wary of China and have signalled willingness to amend supply chains accordingly, the report states. Frontier technologies such as artificial intelligence, space exploration and digital trade hold promise for cooperation, the authors add.
The CFR study draws on conversations with U.S. and Indian officials and five workshops held between 2024 and 2026, as well as sixteen short articles by the author and external experts. It argues that the bilateral relationship cannot be understood solely through narrow self‑interest but through each country’s acceptance or rejection of liberal rules.
For Malaysia, the authors suggest that the shifting U.S.–India dynamics could reshape regional supply‑chain flows. Malaysian firms in electronics, pharmaceuticals and renewable‑energy projects may find new opportunities as India looks for alternatives to traditional Western suppliers, the report notes. At the same time, heightened competition with China could force Malaysia to balance its diplomatic and trade ties with both powers.
The report acknowledges a counter‑argument that shared democratic values and security concerns could still produce a deep strategic partnership. However, the authors contend that without a clear blueprint to replace the fragmented order, the relationship will continue to oscillate between narrow cooperation and broader competition.
In sum, the CFR analysis warns that the post‑liberal order will leave the United States‑India partnership in a state of flux, offering both challenges and limited avenues for collaboration that will reverberate across the wider Indo‑Pacific region.