In the twenty-first century, the world‘s scenario has changed to a great extent. The foreign policy of any state in any era is determined by its national interest and India is no exceptional case. Most of India’s accounts like newfound glory in the comity of nations is directly or indirectly attendant re-orientation of India’s foreign policy in the post-liberalization era. The decade of the 1990s is seen as a turning point which not only ushered India into economic reforms but also brought about enormous change in its foreign policy. India was no longer a prisoner to the historical legacy of non-alignment, socialism, and ‘third world solidarity. It attempted to change its traditional course, shedding much of the past baggage to respond to the rapid and monumental changes that international affairs were going through. In a way, the need for departing from its traditional core values in the domain of foreign policy was as much an outcome of pulls and pressures of the newly emerging global realities as of changes in the internal as well as external political dynamics. Besides these challenges, India’s location is insecure in the turbulent region of South Asia, being surrounded by all sides unsuccessful democracies, military leaders, authoritarian governments, militancy, all these factors force India to move forward and make genuine changes in its foreign policy. India has had to seek new partners, allies and friends to deal with the realpolitik of international politics. While negotiating numerous challenges since then, India’s foreign policy has to be framed with the rising aspirations and opportunities that epithets like ‘emerging power’, ‘rising power’, ‘great power’ could be achieved. Against the backdrop of this study, this paper would analyse what are the contemporary challenges and what are future opportunities for India in this swiftly changing world. In this paper observations and findings will be elaborated on the basis of secondary sources of data.