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The Indian government and businesses should stay away from giving an overly “mercantile” attitude to foreign policy and investments abroad. A deal secured by only economic heft and preying on weakness is likely to produce only bitter fruit later on.
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The world has witnessed a number of upheavals in the past few years, precipitating widespread global political turbulence stemming from geo-economic instability. Over the next couple of months, Gateway House experts will attempt to deconstruct these events and how India and its foreign policy can work to take advantage of these trends.
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Is China actively building up its maritime presence in the Arabian Sea, to dominate vital sea lanes and perhaps encircle India with a chain of naval bases? There can be little doubt that China views Gwadar as a potentially useful asset. China, however, will know better than anyone that Gwadar has two considerable limitations.
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Low GDP growth numbers and the tumbling Shanghai Composite are not enough to judge China’s economic management strategy. It is the long-term, structural, and geoeconomic challenges that will determine the country’s economic future
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India’s merchandise exports have now contracted for 13 months in a row, reflecting the global slowdown and impact of China’s economic recalibration. But, therein lay new opportunities and challenges for India’s economic diplomacy
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During Japanese PM Shinzo Abe’s recent visit to India, both countries made important progress in strengthening their security engagement focused on maritime security, defence purchases and counter-terrorism. Nonetheless, Indian policymakers are conscious of regional concerns about Japan’s renewed nationalism and of balancing this relationship with that of China
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The Chinese Renminbi is now the first in the developing world to find a place in IMF’s basket of reserve currencies. But the road to its inclusion becoming effective is still almost a year away. In this time, China will likely further integrate its currency with global markets
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The U.S.-driven Trans Pacific Partnership agreement between 12 countries, which is aiming to become the new standard of world trade, impacts domestic systems globally. For India, it will skew investment and intellectual property rights, and especially the debate over the Investor State Dispute System which allows companies to challenge sovereign rights and public policy.
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As the discussions at a recent meeting on sustainable infrastructure hosted by the Economic Policy Forum showed, many of the building blocks are already in place. The challenge now is to focus on macro public policy issues, and ask if the short-term compulsions of governments and the private sector will continue to create infrastructure that is unsustainable.
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The recent U.S. and China agreement to contain cyber espionage will not only impact their bilateral relationship, it will also create norms in international cyberspace. But implementation remains a challenge, and businesses, including in India, that have faced cyber threats must proactively plug their vulnerabilities