Abstract
With the dissolution of the Soviet Union, India was required to reformulate her foreign policy and seek new international partnerships to compensate for the loss of diplomatic, economic, and even security support from her traditional partner. Almost at the same time, India's government began to restructure its economic policy in order to open up to the world in the wake of the financial crisis that shook the country in the early 1990s. This paper suggests that the economic reforms initiated in 1991 not only altered India's inward focus on the economic front, but also generated momentum towards a new foreign polich orientation and a readjustemnt of foreign policy goals. The thrust generated by economic reforms along with the end of the Cold War deflected India's policy from non-alignment towards engagement. India's foreign policy was adjusted to meet the significant changes in the internal and external environment, as illustrated by its relations especially with Southeast Asia, its immediate South Asian neighbours, mainland China, and the U.S.