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By:

Rajiv Shah

22 September 2025 at 8:32:23 pm

New Alliances, New Pressures, New Fault Lines

To its west, old relationships in the Gulf are acquiring new strategic and military dimensions. Across the Atlantic, Washington is increasingly using tariffs as an instrument of foreign policy. At the same time, India holds the BRICS presidency in 2026 and prepares to host its summit when the grouping is being watched in the West as a potential challenge to the American-dominated global financial order. Individually, these developments may appear unrelated. Put together, they reveal a larger...

New Alliances, New Pressures, New Fault Lines

To its west, old relationships in the Gulf are acquiring new strategic and military dimensions. Across the Atlantic, Washington is increasingly using tariffs as an instrument of foreign policy. At the same time, India holds the BRICS presidency in 2026 and prepares to host its summit when the grouping is being watched in the West as a potential challenge to the American-dominated global financial order. Individually, these developments may appear unrelated. Put together, they reveal a larger geopolitical churn in which alliances, energy, trade, currencies and economic coercion are becoming interconnected. India finds itself almost at its centre. The emerging Saudi Arabia–Türkiye–Pakistan security equation deserves particular attention. Saudi Arabia brings enormous financial and energy influence; Türkiye possesses considerable military strength, NATO experience and an expanding defence industry; Pakistan brings a large military establishment and nuclear capability with the open support of Washington. Any arrangement containing a collective-defence commitment naturally acquires significance beyond ordinary diplomatic cooperation. Alongside it, another strategic convergence has gradually developed among India, Israel and the UAE. It would be incorrect to describe this as a formal military alliance. Yet geopolitics does not operate through defence treaties alone. India's extensive defence and technology relationship with Israel, its rapidly expanding economic and strategic partnership with the UAE, and the UAE-Israel relationship following the Abraham Accords have created considerable common ground. I2U2—bringing together India, Israel, the UAE and the United States—added another institutional dimension. Thus, without necessarily becoming opposing military camps, two interesting strategic formations are visible across West Asia: Saudi Arabia–Türkiye–Pakistan and the looser India–UAE–Israel convergence. Balancing Challenge India faces a similar balancing challenge. The Gulf is not a distant geopolitical theatre for New Delhi. Nearly nine million Indians live and work there. India's energy security, investments, trade and remittance flows are closely connected with the region. The proposed India-Middle East-Europe Economic Corridor also requires relative stability across this geography. Polarisation in West Asia can therefore rapidly become an Indian economic and strategic problem. There is another question Indian planners cannot ignore. If a future India-Pakistan confrontation escalates, how would any collective-defence commitment involving Pakistan be interpreted by Saudi Arabia and Türkiye? It would be alarmist to assume that either country would automatically enter a conflict against India. Saudi Arabia, in particular, has substantial economic and strategic interests in maintaining good relations with New Delhi. Nevertheless, defence planners are paid to examine possibilities before they become crises. While these equations develop in India's neighbourhood, economic pressure is emerging from Washington. The US Senate has voted 86–11 for legislation intended to increase pressure on Russia by targeting major purchasers of Russian energy. The measure could authorise tariffs reaching 100 per cent against goods from countries continuing large-scale purchases of Russian oil and gas, with India among those potentially exposed. China is powerful enough to shrug off similar challenges from the West." However this does not mean that America has already imposed a 100 per cent tariff on India. Further legislative steps remain necessary, and presidential waiver provisions are important. But the overwhelming Senate vote carries a political message that New Delhi cannot dismiss. Tariffs are no longer merely tools of trade protection; they have become instruments of geopolitical coercion. Washington's argument is understandable: revenues from Russian petroleum help sustain Moscow's economy during the Ukraine war, and reducing those revenues increases pressure on Russia. But in that case what about European countries who too were/are customers of Russian oil? India's question is equally legitimate: who should determine where India purchases the energy required by more than 1.4 billion people? If Russian crude remains commercially advantageous and helps contain domestic energy costs, New Delhi cannot reasonably be expected to make every energy decision according to another country's geopolitical priorities. Strategic partnership cannot become strategic obedience. This is where BRICS enters the larger picture. India holds the BRICS presidency in 2026 and will host its leaders at an unusually sensitive moment. BRICS is no longer merely the original grouping of Brazil, Russia, India, China and South Africa. Its expansion has considerably increased its demographic, energy and geopolitical weight. More importantly, discussions around BRICS increasingly touch a sensitive nerve in Washington: alternative payment mechanisms, local-currency trade, development finance and the possibility of gradually reducing dependence upon the dollar-dominated international financial system. The BRICS Summit this time is poised to take some decisive steps which may affect western interests especially US. (The writer is an advocate, legal, geopolitical and public policy analyst. Views personal.)

Multi-Asset Funds: The Smart Investment

When it comes to wealth creation, diversification is critical in finance. That is where multi-asset funds come in, an innovative mutual fund category designed to give investors a well-rounded and dynamic portfolio within a single product.


What Are Multi-Asset Funds?

Unlike conventional mutual funds that primarily focus on a single asset class such as equities, debt, or gold, multi-asset funds invest in a mix of equities, debt, gold, and silver. This built-in diversification allows investors to participate in the growth potential of the stock market, benefit from the stability of bonds, and hedge against uncertainty with gold and silver. By combining these elements, multi-asset funds provide a balanced approach to building wealth.


Why Diversification Matters

Markets are inherently cyclical. What performs well in one phase may underperform in another. Multi-asset funds help ensure that when one asset class faces challenges, another can cushion the impact, thereby smoothing returns over time.


Flexibility in asset allocation

A key advantage of multi-asset funds is the flexibility fund managers have in rebalancing portfolios. Depending on prevailing market conditions, the allocation between equities, debt, and gold can be adjusted. For instance, if equity markets are overheated, the fund manager may increase exposure to debt and gold. When markets present attractive opportunities, equity allocation can be raised. This dynamic rebalancing helps maintain resilience while pursuing consistent long-term performance.


Gold as a strategic hedge

Gold is a long-standing favorite asset class for many Indian investors. It serves as a natural hedge against inflation and economic downturns. In recent years, global uncertainties and currency fluctuations have further highlighted the importance of gold. By including gold in the portfolio, multi-asset funds automatically add this extra layer of protection for investors.


Professionally managed convenience

For many investors, monitoring markets and rebalancing portfolios regularly is neither practical nor feasible. Multi-asset funds address this challenge by providing professional management. Experienced fund managers, supported by research teams, make allocation decisions on behalf of investors. This saves time and effort while ensuring that the portfolio remains aligned with long-term objectives.


Who should consider them?

Multi-asset funds are well suited for investors who are looking for:

·  A balanced portfolio without the need to invest separately in equities, debt, and gold.

·  A strategy to reduce portfolio volatility while still aiming for growth.

·  A convenient solution for long-term financial goals such as retirement, children’s education, or wealth preservation.


Conclusion

By bringing together equities, debt, and gold within a single investment, multi-asset funds make diversification simpler and more effective. They provide balance, reduce risk, and offer resilience across market cycles. For investors who want to strengthen their portfolios without adding complexity, multi-asset funds represent a smart and future-ready choice.


(The writer is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

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