New Delhi
It goes without saying that the major driving force in today's foreign policies across the globe is the promotion of international economic relations. Having said this, it also ought to be understood due to multiple forms of geo-strategic challenges even the G20 as an economic platform is soon forced to give more prominence to issues like war and health.
But it will be imperative to underline that G20 in effect reflects the economic order of contemporary setting. But it will never be a case to argue that G20 is an alternative to the United Nations. India took over presidency of G20 in December 2022 and will host the Summit this year.
India is a fast growing economy with high rates of growth. Let us look at the seven top economies in the world. While the United States tops the list, India ranks 5th with 7 percent growth figures and India is at present above the UK and France. The Chinese economy has faced challenges and so has the American economy. Now taking a closer view of Indian economy, it may be pointed out that India needs a policy to boost manufacturing and exports.
The endeavour is to achieve a five trillion dollar economy. Experts say at least 35 to 40 percent of the same should come from global trade. Of course in pursuance of the global economic relationships, there are two components. One is multi-platforms and the mission is to get greater market access. India has pledged to articulate the concerns of the global South. The key layer is more crucial one, that is bilateral economic relationships. Things are a bit complex in this sector.
India sees a lot of potential of good economic relationships with some countries but the scope of a sound political relationship is less. On the other hand, notwithstanding fantastic political relationships, the economic ties have remained weak. Analysts would readily say that economic diplomacy is the flavour of the season; but it is also true that the economic diplomacy must be premised on a win-win formula both at multi-platforms such as WTO and also while pushing strong economic bilateral relationships.
On this backdrop, there is a sense to underline that India's foreign policy must be geared up to seek trade openings. These essentially drive the debate to the significance of engaging more openly with global economy to foster economic'growth. Suresh Prabhu as Union Commerce Minister in Modi-1.0 Govt had said that in the new world order diplomacy will increasingly be driven by "economic considerations".
Now at the next stage comes use of technology in economic diplomacy. But before dwelling further on these, there is a need to understand that the principal move behind economic diplomacy should be to garner good investments. This helps boost domestic growth and infrastructures and in turn brings in more revenues and investments.
Technology in diplomacy can scale up promotion of exports. Here the results can be good in more ways than one.
A huge pool of people will be created from two or more countries who get to know each other through multiple economic activities. In such situations, we can find other things develop like education, culture and the soft powers in general sense.
There are important features which came up for deliberations between BJP office bearers and Prime Minister Narendra Modi. It was stated that in 'domestic investment and manufacturing', India's performance has been relatively better than the west. Post the pandemic crisis, while India displayed strong resilience, a few neighbouring countries Pakistan, Sri Lanka and Bangladesh were faced with bigger challenges.
Morgan Stanley, the well known financial services company, says "India will surpass Japan and Germany to
emerge as the third largest economy by 2027". Moreover, analysts agree that India plans to take on China as South Asia's favourite lender; and in this endeavour the private sector is also contributing its part.
While India’s state-owned companies have long operated in neighbouring countries, analysts say Modi’s
government has realised it needs more corporate economic firepower than they can provide.
India has used a mixture of policy and diplomacy, they say, to encourage private corporate champions to pursue deals
that offer commercial opportunities in fast-growing markets and help advance New Delhi’s interests, says BJP
national vice president M Chuba Ao quoting global market watchers.
These should lead us to the debate of inherent strengths of the Indian economy.
G20 Summit will also provide a global platform to offer India as a growing democracy which pitches for
clean economy. The GST was a rightful reform trajectory. Over the last eight years, the Modi government
has focused on the fight against corruption. The Black Money Imposition Tax Act 2015 was one such step.
Demonetisation in 2016 also played its part. Corruption is a menace and thus fighting it by catching the bull
by the horns can actually contribute to the growth of the economy.
The G20 mega event is also an occasion to nurture dreams. India's repositioning in the comity of nations starting 2023-24 and its transitions into an era between 75 years and the 100th year; it will be actually a transition that will swing the entire GDP of the world. Let us thus focus on shared prosperity, as they put it.
ends
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