The purposefulness of the Indian foreign policy is already questionable due to its lack of clarity and direction, which afflicts the neighbouring countries through its affirmative and hegemonic regional policies. Smaller nations of the South Asia region feel threatened and bigger countries remain wary of India’s dubious demeanour. Even with such designs, the Indian foreign policy goals remain unfulfilled. This is due to two important reasons. Firstly, the principles underlining the Indian foreign policy have been left ambiguous and idealistic ever since its inception. Secondly, the execution of the Indian foreign policy is most definitely not along the lines of its stated objectives. This disparate nature of policy execution has led to the perpetration of chaos in the region, which India has quite swiftly ‘managed’ through perception management. This is where the utilisation of Chaos Theory and perception management comes into play, which is analysed in this research paper. If India wishes to achieve its desired position in the region, as desired, then it is imperative that it revisits both the principles and implementation of its foreign policy to match the changing regional and global atmosphere.