Time to Re-Think about India’s Foreign Policy

Initially, one has to understand what “Geo-economics” is. Geo-economics is the study of how economics functions in an international environment. Geo-economics also provides us with a list of economic powers; the states with the greatest economic strengths, and how that influences the structure of power. After living for more than a year and a half with the covid-19 pandemic, the world is recovering and bringing changes in the global economic domain.

India’s Foreign policy has been mainly focused on “Geo-Politics” like that of most other states it has given primacy to frictions and friendships relating to geopolitics such as “The Non-Aligned Movement” as a response to the Cold war, support for UN Peacekeeping, however, lesser importance was given to geo-economics. There are various challenges other than the pandemic that India currently is facing, i.e there are issues regarding human resources because migration and human mobility are the emerging issues. Then, there are issues regarding Science & Technology, as Antimicrobial resistance (AMR) is a growing global problem. Cybersecurity is also demanding deep & careful concerns.

China is also expanding its wings be it in the Indo-Pacific region or in Iran, Taiwan, etc. China’s announcement of 3rd aircraft career is a clear cut indication of its dominance in the Indo-Pacific region. When we have already started talking about ties then there is one more major concern, yes you thought it right, “The deteriorating ties between India & Russia”, even though both the countries share long strategic and economic cooperation., the post-cold war China and Russia convergence remains a foreign policy issue for India.
India’s closeness to the U.S has also weakened its links with traditional friends like Russia and Iran.
There is a need to think “Beyond Geo-Politics”, yes, India needs to look through the prism of a broader approach.

Geo-Economics inevitably impacts geopolitics. We have an example in front of us, yes, China’s Belt and Road Initiative (BRI). Climate, health security, and digital technologies are becoming aspects of geopolitical contestation of different kinds. India’s willingness to encompass these areas, which it previously considered beyond the pale of its foreign policy posture, will be key to its ability to navigate the coming wave of global changes.

India’s presidency of G20 in 2023 will allow weaving geo-economic themes with geopolitical interests. The way forward for the Indian foreign policy should be “strategic hedging” as said by various experts in clearer terms. “Strategic hedging” means bolstering domestic as well as external strategic capabilities and creating economic opportunities beyond India in other nations. For India to be true “Atmanirbhar”, India needs to focus on creating and fostering an environment of resilient supply chains that will enhance India’s position in the global supply chain.

Pandemic has already caused disruption in the supply chain as in the automobile sector, India imports 27% of its requirement of automotive parts from China. A wake-up call for India. India has an import dependency of 80% for medical devices. This is the right time to fill the gap through local manufacturing.

Geo-economics is the interplay between the Geo-politics, economics, & investments. India’s electronic sector was worth $120 bn in 2012 and can reach $400 bn by 2025, but major components are imported and only assembled. India needs to build a supply chain by attracting FDI, establishing manufacturing clusters, PLI schemes in automobiles, pharmacies, etc. With the pandemic, US-China trade war, China’s behavior, many big industries are focusing on relocating from China, India must seize this opportunity and attract foreign investments and make itself a GLOBAL manufacturing hub.