India’s foreign policy toward China has become one of the defining dimensions of contemporary Asian geopolitics, shaped by shifting power balances, persistent border disputes, expanding economic ties, and intensifying strategic competition. While conventional realist explanations emphasize the influence of changes in the international distribution of power, they often overlook the domestic processes through which external pressures are interpreted and translated into foreign policy decisions. This study employs the analytical framework of Neoclassical Realism to examine how India’s approach toward China is shaped by the interaction between systemic constraints and domestic political factors. Drawing upon qualitative research methods and secondary sources, including government documents, policy reports, scholarly literature, and strategic analyses, the paper investigates the growth of India’s China policy from post-colonial engagement to contemporary strategic competition. It argues that India's responses cannot be understood solely through the dynamics of power politics but must also account for leadership perceptions, institutional capacity, strategic culture, economic priorities, and the pursuit of strategic autonomy. The study analyses key developments, including border tensions, China’s expanding regional impact, the Indo-Pacific strategy, and India’s growing security partnerships, to demonstrate how domestic variables mediate external challenges. The findings indicate that India's foreign policy reflects a calibrated strategy that combines deterrence, diplomatic engagement, defence modernization, and multilateral cooperation while preserving independent decision-making. By integrating structural and domestic levels of analysis, the paper offers a comprehensive explanation of continuity and change in India’s policy towards China illustrates the explanatory value of Neoclassical Realism in understanding the foreign policy behaviour of emerging powers. The study contributes to the broader literature on international relations by providing a nuanced interpretation of India's strategic choices in an evolving multipolar order and highlighting the complex relationship between external pressures and domestic decision-making in shaping contemporary foreign policy.