Thailand-Cambodia border clashes escalate: Why India can’t afford to take sides | Explained

Royal Thai Army soldiers are pictured on armoured vehicles on a road in Chachoengsao province on July 24, 2025.

Tensions have erupted once again along the Thailand-Cambodia border, with a week of deadly clashes pushing the two Southeast Asian neighbours to the brink. Nearly a dozen Thai soldiers have been killed, a civilian injured, and retaliatory airstrike carried out by Thailand have raised fears of escalation. As both nations blame each other for instigating the violence, regional players are watching closely.

For New Delhi, taking a side isn’t a viable option. Despite its growing presence in Southeast Asia through the Act East Policy, India finds itself in a delicate balancing act, where picking a favourite could jeopardise its long-term regional ambitions.

India has cultivated equally warm and cooperative relationships with both Thailand and Cambodia. With Thailand, India shares robust military ties, maritime cooperation, and economic synergy. With Cambodia, India has deepened development partnerships, extended grants and credit lines, and leveraged soft power through cultural restoration and Buddhist diplomacy.

India-Thailand relations

India and Thailand are part of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and maintain close diplomatic ties under the broader Act East Policy framework.

Strategically, India and Thailand conduct regular joint military exercises, such as “Maitree” (army) and “Siam Bharat” (air force), showcasing deepening defence cooperation. Naval collaboration is also critical, with both nations participating in Indo-Pacific maritime dialogues and anti-piracy patrols in the Andaman Sea.

Economically, bilateral trade hovers around $18 billion, and India is seeking to boost trade through the India-ASEAN Free Trade Agreement. There's also growing interest in the India-Myanmar-Thailand trilateral highway, which, once completed, will significantly enhance overland connectivity between India and Southeast Asia.

India-Cambodia relations

India has extended lines of credit and grant assistance to Cambodia for several development projects, including in infrastructure, IT, education, and water resources. It has also assisted in the restoration of Angkor Wat and Ta Prohm temples, cementing its soft power credentials in Cambodia.

Security ties have grown modestly, with India providing training and capacity-building support to Cambodian armed forces. India has also been involved in de-mining assistance and counter-terrorism training under broader ASEAN cooperation.

Trade remains limited, hovering around $300-400 million annually, but India is exploring ways to boost investment in Cambodia’s agriculture and textile sectors. Additionally, India has included Cambodia in its Mekong-Ganga Cooperation framework, aiming to deepen cultural, tourism, and academic exchanges.

In such a scenario, overtly supporting one country over another, especially in a military or diplomatic standoff, risks undermining hard-earned trust with the other.

India’s Act East policy

India’s broader Act East Policy is designed to deepen strategic and economic engagement with ASEAN nations. A key pillar of this vision is regional stability, particularly in Southeast Asia, where India is working to counterbalance China and expand its own influence.

A full-blown conflict between two ASEAN nations like Thailand and Cambodia directly undermines this objective. India’s interest lies not in choosing a side, but in preserving harmony within ASEAN, whose unity is crucial for India’s connectivity projects and economic integration.

Major projects at stake

India’s ambitious India-Myanmar-Thailand Trilateral Highway, which is eventually expected to extend to Laos, Cambodia, and Vietnam, could face setbacks if instability spreads. Any worsening of border tensions between Cambodia and Thailand may derail future phases of this vital overland project.

India’s vision of linking its northeastern region to Southeast Asia hinges on cross-border cooperation and open trade routes, not war or heightened military posturing.

The China factor

Cambodia is widely seen as one of China’s closest allies in Southeast Asia, with Beijing pouring billions into its infrastructure and defence sectors. India, which seeks to counter Chinese dominance in the region, has been cautiously increasing its engagement with Phnom Penh.

Publicly supporting Thailand militarily or diplomatically in this conflict could drive Cambodia even deeper into China’s strategic orbit, reversing India’s quiet but consistent efforts to wean Cambodia away from over-dependence on Beijing.

Non-alignment legacy

India has long followed a policy of non-alignment and strategic autonomy, especially in regional conflicts where its direct interests are not immediately threatened. From the South China Sea disputes to tensions within ASEAN, India has typically urged peaceful dialogue and regional mechanisms over intervention or partisanship.

In this case too, India is expected to push for de-escalation through ASEAN forums, while refraining from assigning blame to either party.