General Studies-2; Topic: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
Introduction
- India, as the world’s largest democracy and the fifth-largest economy, finds itself at a critical juncture in international relations.
- This moment is defined by a rapidly evolving global order shaped by geopolitical realignments, economic uncertainties, and technological advancements.
- To fully realize its potential, India must adeptly manage complex global dynamics while addressing significant domestic challenges.
Geopolitical Challenges and Relationships with Global Powers
Strategic Autonomy: Modern Non-Alignment
- India continues to prioritize strategic autonomy, maintaining flexibility in its foreign policy decisions.
- This approach allows India to balance ties with global powers like the US, China, and Russia while avoiding rigid alliances.
The Indo-US Relationship: Collaborative Yet Brittle
- Strengths:
- Strategic cooperation through the Quad, aimed at ensuring a free and open Indo-Pacific amidst China’s rise.
- Collaboration in emerging technologies such as AI, semiconductors, and defense partnerships.
- Trade volume surpassing $100 billion underscores the economic interdependence.
- Challenges:
- Allegations involving Indian officials and differing views on issues like Russia and Iran create diplomatic friction.
- Legal proceedings in US courts and domestic political factors, including potential shifts under Donald Trump’s re-election, could introduce uncertainty in trade and immigration policies.
- Key unresolved issues, such as H1-B visa restrictions and market access for Indian IT firms, add to economic tensions.
India-China Relations: Managing Rivalry
- Post-Galwan Standoff:
- Despite limited disengagement, border disputes remain unresolved, with significant military deployment on both sides.
- Bilateral trade hit $136 billion in 2023, but a trade deficit exceeding $85 billion highlights India’s reliance on Chinese imports (electronics and pharmaceuticals).
- Challenges:
- China’s Belt and Road Initiative (BRI) encircles India with strategic infrastructure investments in Pakistan, Nepal, and Sri Lanka.
- The China+1 strategy, adopted by global conglomerates, offers opportunities for India but demands a competitive policy environment.
India-Russia Relations: A Strategic Necessity
- The enduring bond, fueled by discounted oil imports, remains critical despite Russia’s growing proximity to China.
- Russia’s closer alignment with China, and emerging nuclear collaborations in West Asia, could complicate India’s strategic calculus.
- Continued defense cooperation, particularly in areas like missile systems and naval assets, is pivotal.
Expanding Economic Engagements and Investment Horizons
Trade Agreements and Global Integration
- Bilateral trade pacts with Australia and the UAE have strengthened India’s role in global value chains.
- The Unified Payments Interface (UPI) is being promoted as a model for secure and efficient global financial transactions.
- India’s withdrawal from the Regional Comprehensive Economic Partnership (RCEP) reflects a cautious approach to trade liberalization, but it has slowed integration into broader Asian markets.
Challenges in Attracting Investments
- Declining FDI: Net FDI dropped to a 16-year low of $10.58 billion in 2023-24 due to:
- Bureaucratic inefficiencies and high tariffs.
- Inconsistent policy implementation.
- Free Trade Agreement (FTA) Stalemates:
- Ongoing negotiations with the UK and EU have been delayed due to disagreements on tariffs, data localization, and labour mobility.
Sustainability and Green Economy
- India’s commitment to achieving net-zero emissions by 2070 requires balancing economic growth with sustainability.
- Advocacy for limiting global warming to 1.5°C above pre-industrial levels aligns with its leadership in global climate initiatives.
- The Production-Linked Incentive (PLI) schemes show promise but have yet to deliver consistent results across sectors.
Leadership on the Global Stage
Multilateral Reforms and Advocacy
- India continues to advocate for reforms in global institutions like the UN Security Council, IMF, and World Bank, seeking greater representation for developing nations.
- Its tenure as a non-permanent UNSC member highlighted its commitment to counterterrorism and climate action, but the lack of progress on Security Council reforms reflects the complexity of global power politics.
Global South Leadership
- Initiatives like the International Solar Alliance (ISA) and the Coalition for Disaster Resilient Infrastructure (CDRI) showcase India’s leadership in sustainable development.
- Engagement with BRICS and the Shanghai Cooperation Organisation (SCO) underscores its role in promoting South-South cooperation.
- Challenges persist in balancing partnerships with the Global North and Global South, particularly on technology transfer and geopolitical issues.
Regional Stability: Challenges in Neighbourhood Diplomacy
- Bangladesh:
- Anti-India rhetoric has intensified, stalling joint infrastructure projects like cross-border rail links.
- Bangladesh’s closer ties with China and Pakistan indicate a shift in regional dynamics.
- Nepal:
- Pro-China policies and infrastructure projects, such as BRI-backed initiatives, threaten India’s traditional influence.
- Maldives:
- A pro-China government complicates India’s Neighbourhood First diplomacy.
- Pakistan:
- Diplomatic relations remain frozen, with persistent tensions over terrorism and Kashmir.
Way Forward
- India’s efforts to counter Chinese-backed infrastructure and trade initiatives demand enhanced economic and diplomatic engagements in South Asia.
- Projects like the India-Bangladesh Friendship Pipeline and the Kaladan Multi-Modal Transit Transport Project must be expedited to strengthen regional ties.
- Social cohesion and robust domestic development are essential to strengthen India’s global advocacy for an equitable world order.
- Addressing domestic challenges like poverty alleviation, healthcare, and education will enhance India’s credibility as a leader of the Global South.
- India must invest in R&D and digital infrastructure to position itself as a leader in emerging technologies like AI, quantum computing, and renewable energy.
- Reforms in bureaucratic processes, trade policies, and taxation will attract investments and ensure sustained economic growth.
Conclusion
- India stands at a decisive moment where its actions in the next decade will define its global standing. Balancing geopolitical ambitions, fostering regional stability, advancing economic diplomacy, and addressing domestic challenges will be critical.
- With strategic vision and policy coherence, India can emerge as a key architect of a stable and inclusive global order, leveraging its demographic dividend, economic strength, and cultural influence to lead on the world stage.
Practice Question:
Analyse how India’s pursuit of strategic autonomy aligns with its historical non-alignment policy. Discuss its relevance in the current quasi-multipolar world order. (250 words)
