The Arctic region has recently assumed considerable strategic significance as it has been underlined by the policies enunciated by major powers. The interests and concerns of the Arctic states are vast and varied. India, being an observer in the Arctic Council, has legitimate interests in the region and has, of late, come out with its own Arctic policy. India’s Arctic policy notified as a draft document in early January 2021 has come as a shot in the arm for the country’s science diplomacy. The policy claims to concur with India’s fast expanding scientific-technological power status. However, it has been drafted in a strategic milieu of countries like China having invested with great ambition in the region. Though India has stepped up with its sustainable engagement diplomacy in the Arctic, the question remains whether the draft policy adequately addresses the emerging power equations in the region. The article examines this challenging scenario in the Arctic region and explores the potentials and constraints of India’s Arctic policy.