Here are a few of the hurdles the new Government is facing and resolving them will be a daunting task.
Will the ceasefire violations ever end?
Despite efforts from Indian government to settle disputes with Pakistan, there have been constant ceasefire violations at the Line of Control raising questions that whether these violations will ever come to an end?
Pakistan violated ceasefire in Jammu and Kashmir 19 times between May 26 and July 17, since the new government has took over.
"Our head has not bowed... This government will not let our heads bow," Defence Minister Arun Jaitley said replying to questions in Rajya Sabha. Jaitley's response came when Leader of Opposition Ghulam Nabi Azad said Narendra Modi, before becoming the Prime Minister, used to accuse the then UPA dispensation of being 'weak'.
Chinese supremacy in BRICS bank
China, world's number 2 economy is known to have a significant influence in any venture it gets involved. And with China being a part of the BRICS new development bank venture, it is seen as a big challenge. Experts fear that China will try to assert greater influence over the $100 billion bank to expand its political clout overseas.
Although India has its first BRICS bank president, but with the Bank's headquarters situated in Shanghai, China might try to increase its hold in this new venture by bringing in new member countries from its sphere of influence.
Dilemma over Israel-Palestine conflict
Blocking a resolution against Israel in Parliament as demanded by the opposition, government asserted that India's policy on Palestine issue remains unchanged even as it refused to take sides over the Gaza conflict by saying that both sides should hold peace talks.
"There is absolutely no change in India's policy towards Palestine, which is that we fully support the Palestinian cause while maintaining good relations with Israel," External Affairs Minister Sushma Swaraj said and emphasised that this policy has been in vogue through various governments including those of Congress, BJP and coalition governments headed by Deve Gowda and IK Gujral.
"We have diplomatic ties with both nations. Any discourteous reference can impact our relations with them," Sushma said.
Narendra Modi-led government is facing dilemma over its stand on the escalating violence between Israel and Palestine and thus, earlier it steadfastly refused the opposition's demand to discuss the issue in the Rajya Sabha.
Bonhomie between Russia-China post Ukraine crisis:
Escalating tension in the Ukraine region, especially after the Malaysian plane crash, is going to mount pressure over the new government and force it to rethink about its relations with Russia. Shooting down of the Malaysian Airlines flight MH17 over Ukraine is likely to lead further American pressure on Russia. The increasing US-Russia conflict will have consequences and they will undoubtedly impact India.
To strengthen its clout in Asia, Kremlin is seen inching closer towards China, another US competitor, and has reportedly made strategic deals with Beijing. This Sino-Russia proximity would overturn Russia's informal agreement with India for not supplying more advanced equipment to China than what it was supplying to India.
With all these challenges at such an early phase of coming to power, Narendra Modi government's diplomatic knack is at test. It will be interesting to see how New Delhi tackles these complications.