Against the backdrop of intensifying major power competition and the transition of the international system from unipolarity to multipolarity, India has emerged as a major strategic variable influencing the evolution of the global balance of power. However, the rise in India’s strategic significance has not yet been accompanied by a definitive “side-taking” between the United States, Russia, and China; rather, it is characterized by persistent multi-alignment diplomacy. The concept of “soft sovereignty” offers an effective explanatory framework for India’s diplomatic behavior. This study argues that the recurring practice of strategic autonomy in Indian diplomacy essentially manifests a form of functional sovereignty, centered on the right to strategic choice, the veto power over formal alliances, and the ultimate discretion in decision-making.