Indias-Foreign-Policy-Economic-Dimensions.pptx.pdf

It delves into the Economic Perspective of India majorly in Asia-Pacific region, but not limited to that.

1. Economic Diplomacy in Action
Charting India’s Roadmap from Regional Cooperation to Global Engagement"
Submitted by:
Natasha Sah

Enrollment number:
Department of Strategic Communication
Indian Institute of Mass Communication
New Delhi-110067
Submitted to:
Dr. Aditya Ojha
Assistant Professor

2. Economic Diplomacy in
Action
“Charting India’s Roadmap from Regional
Cooperation to Global Engagement"

3. Introduction to India's Foreign
Policy and Its Evolution
India's foreign policy has evolved from non-alignment to multi-alignment, reflecting its
growing economic strength and strategic interests. Initially focused on political
independence and sovereignty, it now integrates economic diplomacy to promote trade,
investment, and technological cooperation. This shift highlights India's proactive
approach to engaging with the world and leveraging its economic assets for national
development. The evolution underscores a commitment to fostering mutually beneficial
relationships.

4. Indian economy on the eve of
independence
At the eve of independence in 1947, India’s economy was in a deeply distressed state due to nearly two
centuries of British colonial rule. The economic structure was stagnant, underdeveloped, and heavily dependent
on agriculture, with little industrialization and an impoverished population.
1. Agricultural Backwardness
Main occupation, employing over 70%
of the population, frequent famines,
the focus was on cash crops.
2. Deindustrialization and Decline of
Handicrafts
Discouraging local industries, Cheap
British manufactured goods, By 1947,
the industrial sector contributed only
10-12% to GDP
3. Stagnant and Declining Trade
Reduced to an exporter of raw materials and
an importer of British goods, “Drain of
Wealth” (Dadabhai Naoroji’s theory), making
monetary policy dependent on Britain.
4. Poverty, Low Per Capita Income, and
Inequality
Per capita income was extremely low, High
unemployment and underemployment,
Widespread poverty and malnutrition with life
expectancy to only 32 years

5. how economy has shaped the
foreign policy of India ?
1 The Nehruvian Socialist Era (1947–1991)
2
The Liberalization Period (1991–2000)
3 The Rise of Economic Power (2000–2014)
4 Global Engagement (2014–Present)

6. the Phases!
India adopted a mixed economy with a heavy emphasis on
state-led industrialization, inspired by socialist ideals. Focus
on dams, steel, energy, education (IITs)
Foreign Relations:Non-Alignment, anti-colonial solidarity
� Founder of NAM � Close cooperation with USSR
(Bhilai Steel Plant), � 1971 Indo-Soviet Treaty
� Global South solidarity.
Key Developments: � 1st FYP (1951–56) & 2nd FYP
(1956–61) � Avoided Western military blocs � Rupee–
ruble bilateral trade. &#3627932984; 1991 BoP crisis: forex reserves <
$1B &#3627932984; Rising inflation & oil shocks
The 1991 balance of payments crisis forced India to embrace
economic liberalization under Prime Minister P.V. Narasimha
Rao and Finance Minister Manmohan Singh. Market
liberalization, privatization, trade openness, End of License Raj,
FDI reforms, tax and trade reforms.
Foreign Relations: India shifted towards economic diplomacy,
strengthening ties with the West, particularly the U.S., EU, and
ASEAN countries. Foreign Direct Investment (FDI) and global
trade integration became key priorities.
Key Developments: Joining the World Trade Organization
(WTO) in 1995. &#3627932984; FDI: $0.1B (1991) → $3.6B (2000), &#3627932984;
Look East Policy launched in 1992

7. India emerged as a global economic player, focusing on IT,
services, and manufacturing. Special Economic Zones
(SEZs) and foreign trade agreements were promoted to
attract investment.
Foreign Relations: India deepened strategic economic
partnerships with the U.S., European Union, and East Asian
nations. Engagement with China increased,&#3627932985;
BRICS(2009), IBSA (2004) involvement
.
Key Developments:The India-U.S. Civil Nuclear Deal
(2008). &#3627932984; Services = 53% of GDP by 2014 &#3627932984; Major
FTAs with ASEAN, Japan &#3627932984; India–China trade crossed
$70B.
India has emphasized self-reliance (Atmanirbhar Bharat) while
continuing global economic engagement. The focus has been
on manufacturing, digital economy, and infrastructure
development.
Foreign Relations: India’s foreign policy now integrates
economic and strategic considerations, balancing relations
between the U.S., Russia, and China Multi-alignment +
strategic assertiveness &#3627932985; QUAD, Indo-Pacific, FTAs &#3627932985; Act
East(2014).
Key Developments: Free Trade Agreements (FTAs) with UAE,
Australia, and discussions with the EU. &#3627932984; FDI = $83B (2021–
22) &#3627932984; UPI & Digital India exported to 10+ nations &#3627932984; FTAs
with UAE, Australia, EU talks ongoing
the Phases!

8. Integrating Economic Priorities into
Foreign Policy
1. Trade and Market Access
Neighbourhood First Policy:
India has prioritized trade with its immediate neighbors (e.g., Bangladesh, Nepal, Bhutan, and Sri Lanka) by
negotiating preferential trade agreements and reducing non-tariff barriers.
Example: projects such as KALADAN TRANSIT PROJECT, CHABAHAR PORT etc.
Regional Trade Pacts:
India actively participates in forums such as SAARC (South Asian Association for Regional Cooperation) and
BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) to foster regional
economic integration.
Global Trade Integration:
India has been involved in negotiations for broader agreements like the Regional Comprehensive Economic
Partnership (RCEP), even though it later opted out, signaling its interest in engaging with larger regional blocs.

9. project highlights
The project will reduce the distance from Kolkata to Sittwe by
approximately 1,328 km. It will reduce the need to transport
goods through the narrow Siliguri corridor.
This project will connect Sittwe Port in Myanmar to the India-
Myanmar border. It will contribute to the economic development
of the North-Eastern States of India, by opening up the sea route
for the products.
Chabahar port serves as an anchor for Indian trade in the
West Asian region. It also enhances India’s role in the Global
Supply Chain.
The development of Chabahar Port will increase trade between
India and Central Asia, with a potential bilateral trade value
surpassing US$ 200 billion

10. 2. Investment and Infrastructure Development
Foreign Direct Investment (FDI) Promotion:
Since the economic reforms of 1991, India has liberalized its investment policies, making it a more attractive
destination for global investors.
Example: Reforms in sectors such as telecommunications, automotive, and information technology have led to
increased FDI, boosting economic growth and job creation.
Infrastructure Projects and Connectivity Initiatives:
Investments in cross-border road, rail, and port infrastructure enhance market connectivity and facilitate smoother
movement of goods and services.
Example: The India-Myanmar-Thailand Trilateral Highway is an infrastructure project aimed at connecting
South and Southeast Asia.
Strategic Partnerships:
Collaborations with countries like Japan and the USA have helped fund large-scale projects such as the bullet
train project (Mumbai-Ahmedabad High-Speed Rail Corridor), which leverages technology transfer and joint
financing.

11. source : DPIIT
FORIEGN DIRECT INVESTMENT

12. 3. Technology Transfer and Innovation
Collaborative Research and Development:
India has used its economic diplomacy to foster technology partnerships, encouraging
innovation and digital transformation.
Example: Partnerships with countries like the USA (iCET)(2023) and Israel in defense (MoU
2017), space technology, and healthcare research have led to significant technology transfers.
Digital Diplomacy:
Initiatives like “Digital India” not only drive domestic digital transformation but also open
avenues for collaboration in information technology and cybersecurity with other nations.
Example: India’s cooperation with European and ASEAN countries in developing smart cities
and digital infrastructure reflects its commitment to a global digital economy.
AND, adoption of UPI Singapore, Malaysia, UAE, France, Nepal, UK, Mauritius, Sri Lanka to
name a few.

14. 4. Financial and Economic Cooperation
Multilateral Financial Institutions and Forums:
India plays a significant role in global financial institutions such as the World Bank, International
Monetary Fund (Voting share: 2.63% ), and the Asian Development Bank(Voting Share: 6.34%),
using these platforms to influence economic policy and secure funding for development projects.
Example: India's leadership in the BRICS grouping (Brazil, Russia, India, China, South Africa) has
led to initiatives like the New Development Bank (NDB), which aims to finance infrastructure and
sustainable development projects in emerging economies.
Economic Policy Dialogue:
Bilateral economic dialogues with countries like the United States, Japan, and the EU allow India to
negotiate issues ranging from trade imbalances to regulatory cooperation, fostering a stable
investment climate.

15. Source: Wikipedia, Economic Times

16. India’s Development Assistance & Humanitarian Aid

Grant-in-Aid and Lines of Credit (LoC):
Over US$ 30 billion worth of LoCs extended to 64 countries, including:
Bangladesh: US$ 8 billion for railways, electricity, ports.
Nepal: Assistance for post-earthquake reconstruction.
Myanmar: Kaladan Multimodal Transit project and Trilateral Highway.
Sri Lanka: US$ 4 billion assistance during 2022 economic crisis.
Capacity Building and Technical Aid:
ITEC (Indian Technical and Economic Cooperation): Training programs for civil servants, engineers, doctors from
ASEAN, BIMSTEC, and SAARC nations.
Support in solar tech, fintech (UPI adoption), and e-governance platforms.
Humanitarian & Disaster Relief:
Operation Dost (2023): Humanitarian aid and rescue to Turkey and Syria after earthquake.
Operation Maitri (2015): Earthquake relief in Nepal.
COVID-19 Vaccine Maitri: Supplied over 22 million vaccines to Asian nations including Bangladesh, Bhutan,
Maldives, Myanmar, Sri Lanka, and Nepal.

17. Recent Trade & Investment
Patterns – A Global Lens
Recent trade and investment patterns reveal a growing interdependence between
India and its partners. Trade volumes have increased significantly, driven by sectors
such as technology, manufacturing, and services.
Rise of Knowledge-Based
Exports
Intellectual Property (IP) services & R&D
exports grew 13% in 2023, especially in
pharmaceuticals, biotech, and AI.
Indian pharma companies now supply 60%
of global vaccine demand (e.g., Serum
Institute of India).
India's Role in Global
Corporate Supply Chain

Apple, Foxconn, Samsung relocating
manufacturing to India – part of
“China+1” strategy.
Exports of mobile phones crossed $11
billion in FY23, up from $0.3 billion in
2017.
Green Economy & Climate
Finance Diplomacy
Leading global investment destination for renewables: attracted $10.5
billion in 2022–23.
Over 42% of India's electricity now from non-fossil sources (ahead of
target).

18. Shaping Global Partnerships &
Collective Growth
(Conclusion)
?????? From Connector to Catalyst: India has moved beyond traditional diplomacy
to become a shaper of global frameworks—economic, digital, environmental,
and geopolitical
?????? Championing the Global South: India amplifies the voice of developing
nations through development partnerships, capacity building, and leadership in
the Voice of Global South Forum.
?????? Digital for Development: Through the export of scalable Digital Public
Infrastructure (like UPI, Aadhaar, CoWIN), India is driving digital inclusion
globally, backed by G20 and World Bank support.
?????? Green Diplomacy in Action: India is a founding force behind coalitions like
the International Solar Alliance and Mission LiFE, promoting climate-resilient
infrastructure and sustainable living.
?????? A Vision for Multipolarity: Advocating multi-alignment, India maintains
balanced ties with diverse powers while strengthening multilateral platforms
such as BRICS+, QUAD, SCO, and G20.

19. “India’s foreign policy is no longer just
a bridge between East and West—it is a
platform for global equity, innovation,
and sustainability.”
Thank you!

20. References and Sources
Researches
Deloitte. (Year). Slower Holiday Sales but E-Commerce to Grow.
Coresight Research. (2023, August 9). US Store Closures Surpass Openings for First Time This Year.
World Bank Report: "Digital Public Infrastructure: A Global Driver of Growth" (2023)
Books
Pant, H. V. (2020). India's Foreign Policy: An Overview. Oxford Research Encyclopedia of Politics.
Mohan, C. R. (2018). India and the Great Power Rivalry. Journal of Strategic Studies, 41(1-2), 169-190.
“India’s Foreign Policy: Coping with the Changing World” by Muchkund Dubey
“The Oxford Handbook of Indian Foreign Policy” edited by David M. Malone, C. Raja Mohan, and Srinath Raghavan

21. Government Publications:
Ministry of Commerce and Industry, Government of India – Annual reports and trade statistics that provide insights into
bilateral trade figures, FDI trends, and policy initiatives.
Ministry of External Affairs (India) – Official press releases, policy documents, and speeches that often discuss India’s
“Neighbourhood First” policy and regional cooperation efforts.
Think Tank and Research Institute Reports:
Observer Research Foundation (ORF) – Regular analyses on India’s economic diplomacy and regional cooperation in South
Asia.
Institute for Defence Studies and Analyses (IDSA) – Articles and briefs that sometimes cover economic dimensions of India’s
foreign policy.
International Organization Reports:
World Bank and International Monetary Fund (IMF) – Publications that examine India’s economic trends, investment flows,
and broader implications for the South Asian region.
WHO Vaccine Supply Data – Serum Institute of India is the world’s largest vaccine producer
NASSCOM Tech Industry Factsheet 2023
BloombergNEF: Climatescope 2022
Official sites of Regional corporations
ASEAN portal
BIMSTEC.org