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The Asia–Pacic region is going through a power shift. The American-led security structure, which for decades has maintained peace and security in the region, is under huge stress. Various political and economic factors are playing a role in hurting this security alliance system. Unprecedented Chinese naval expansion in the region is changing the “balance of power” there like never before. China is becoming more assertive far beyond its traditional geographical areas of activity, the Indian Ocean being one such area where it has increased its engagement in recent years. By using various political, economic, diplomatic and military tools, it has been increasing its inuence many-fold, greatly altering the current balance of power. Concerned by this increasing power shift and the continually expanding role of outside powers in its neighborhood, India has launched its own engagement strategy for the region under a “Neighborhood First” policy. Through this strategy, India is striving to increase its role in the development of countries in the Indian Ocean region. Due to the fact that such a power shift is happening across the entire Asia–Pacic arena, keeping balance of power in one area is dependent and interconnected with similar efforts in other parts of the Asia–Pacic. Since South Korea is a major democracy in Northeast Asia, it has emerged as a natural ally of India and has joined hands to protect a law and rules-based regional governing order. So far we have seen India playing a very limited role in the internal power dynamics of Northeast Asia, yet a time is coming when India might be required to play a more active role in strengthening Korea’s hand. More robust strategic and defense policy coordination between India and Korea can go a long way in maintaining peace, prosperity and security in the region.