How does India navigate contested regional multilateral frameworks in the Asia-Pacific? This question has important implications for India's multilateral foreign policy and diplomacy that seeks to emerge from regional to global power. The authors argue that India's foreign policy involves seeking institutional balancing and avoiding rising power dilemmas. Based on the conceptual framework of institutional balancing and rising power dilemma, the paper examines how seeking institutional balancing helps India advance its diplomatic prowess vis-à-vis rising China while simultaneously leveraging its multi-alignment strategy against the United States. Furthermore, the paper discusses India's key priorities for avoiding the rising power dilemma, thus exhibiting its reluctance to conform to the US hegemony and addressing its internal and external dilemma concerning China. The evaluation suggests that India's foreign policy rationality navigates between obtaining comprehensive security and economic gains in dealing with contested regional multilateralism.