A Look At Challenges And Opportunities Of India’s Foreign Policy

India’s foreign policy is at an interesting juncture. As per experts, a coalition government in India for the first time in 10 years, may not prove to be a roadblock in meeting the foreign policy challenges India faces.

• Continuation of Policies: With no change at the top at the Ministry of External Affairs, a broad continuity is indicated. However, there will be some calibration and re-setting of the agenda for specific regions, depending on the changing global situation and Indian strategic imperatives.
• Guest at G7 Summit: India has been a guest country in 50th Group of Seven (G7) Summit, reflecting its rising global stature and the recognition of its role as a major economic and geopolitical actor. 

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Relations With the Neighbourhood

• Neighborhood First- Invitation in Swearing-in-Ceremony: The neighbourhood continues to be priority number one. Top South Asian leaders attended the oath ceremony, reflecting the government’s commitment to Neighbourhood First policy.
  • Bangladesh, Bhutan, Nepal, Sri Lanka, Maldives, Mauritius, and Seychelles attended the swearing-in of the new government. However, Pakistan, Afghanistan, and Myanmar were not invited. 
  • The visit of Maldives President, who rode to power on an “India Out” plank, was especially significant. 
• Change Observed: Unlike earlier, there was no substantive bilateral meeting with any neighbourhood leader.
  • Earlier in the 2014 swearing-in ceremony, India had invited the leaders of SAARC countries, including the Prime Minister of Pakistan. 
• Significance: India’s great strengths lie in its culture, people, and geography. If India aims to emerge as a leading world power, it must use the ‘Neighbourhood First’ policy or the ‘Act East’ policy. 
• Actions Required: Diplomacy can pay long-lasting dividends only when it is supported by its national culture and interests. India has turned several of its weaknesses into strengths in the last few years. Deeper engagement with sub-national states is yet to see much progress. 
  • India will have to be nimble in its diplomacy and be unilaterally generous without insisting on reciprocity. 
  • Several neighbours look forward to a restrained and sensitive Indian Foreign Policies.

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Relations With the Western Countries

• Strong Ties: The present government’s engagement with the West has been more transactional than several previous governments. It has also developed strong strategic ties with the US, Europe, Japan, and Australia.
• India-US Partnership: It will certainly witness a new phase of the relationship. India needs higher foreign investments and technology from the US. 
  • India’s ambition is to become self-reliant in the semiconductor industry. A deepening partnership with the US means higher American investment in the technology areas.
  • The alleged plot to assassinate Khalistani separatist Gurpatwant Singh Pannun has been a major sore point with the West, which views India as a democratic, rule-of-law-abiding partner. 
    • The visit of the US National Security Advisor will test the strength of Indo-US diplomatic ties, and perhaps indicate a path to unlocking this issue.
• Ties With European Countries: Economic and political ties with European countries such as France and Germany have improved, and the UK has been keen to conclude a Free Trade Agreement (FTA) with India. 
  • India and the EU too are keen to conclude an FTA to the mutual benefit of their economies.
• Concerning Ties with Canada: Canada accused India of having a hand in the murder of another Khalistani separatist and political relations are likely to remain strained at least until the Canadian elections of 2025. 
  • However, economic ties and student flows to Canada have not been impacted.
• Expectations: 
  • Western Countries: The West would like India to be less thin-skinned about criticism and comments, and be ready to engage and do business with them. 
  • India: The ideal scenario would be to secure Indian interests and benefit from Western capital and technology. The Indian PM’s engagements at the G7 in Italy might signal steps in this direction.

Relations With Russia

• Ukraine Episode: India’s ties with Russia are being tested by the war in Ukraine. India has dependency on Russia’s defence items and technology and the availability of cheaper oil.
  • Russia is India’s new source of energy. Projects like INSTC or Chennai-Vladivostok Maritime Corridor hold immense potential for transforming the partnership with Russia.
  • Russia has not collapsed under Western sanctions, and it is now widely seen as having the upper hand in the war.
• Next Action: Besides India, Saudi Arabia, South Africa, Thailand, Indonesia, Mexico and UAE were among countries participating at the Peace Conference on Peace for Ukraine but did not sign a final communique. 
  • India is expected to emphasise on dialogue and diplomacy. 

Relations With Latin American Countries

• This region is significant for India in order to achieve its global ambitions such as pursuing permanent membership of the UNSC, the NSG and at various other negotiations like climate change, terrorism, trade, etc.

Relations With Africa

• Realizing the importance of this region, India enabled the joining of the African Union in the G20. India is one the largest contributors to UN Peacekeeping Operations in Africa. India also extends grants and aid for the development of African Nations.

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High Stakes in Middle East

• Consistent & Progressive Relations: In the last 10 years, India built ties with countries and leaders in the region, from Saudi Arabia to Israel, UAE to Iran, Qatar to Egypt. 
  • India will continue to work to ensure security and political balances in the Middle East and elsewhere. 
• Scope: Energy security, investments, and the 9-million-strong Indian diaspora in the region have been the major stakes for India.
• Significance: The Middle East remained the mainstay of India’s foreign policy, offering both economic gains and geostrategic dividends. 
  • Today, the Red Sea attacks and blocking of the Suez Canal are heavily impacting India’s trade. Undoubtedly, peace in the Middle East is crucial for India’s trade and connectivity. 

Relations with Various Grouping

• The India-Middle East-Europe Economic Corridor (IMEC), I2U2, International North South Transit Corridor (INSTC): These are all thought to be game changers, but the Israel-Hamas conflict has introduced uncertainty.
  • The IMEC is a viable alternative to avoid the Bab El-Mandeb strait, which is a major chokepoint for maritime traffic and India will ensure speedy development of the IMEC corridor. 
• Push for Indo-Pacific Cooperation: The Indo-Pacific partnership will continue to flourish. India’s IPOI (Indo-Pacific Ocean Initiative) will gain greater attention and gas expectations for several new activities. Today, more than 12 countries are partners in the IPOI. 
  • If India’s vision of the Indo-Pacific to succeed, the IPOI must gain some credible momentum. India will continue actively participating in the IPEF and US-led Indo-Pacific programmes keeping the ASEAN centrality intact. 
• The Association of Southeast Asian Nations (ASEAN): Renewed partnership with ASEAN, India’s land and maritime neighbour, and also Japan, Korea and Australia will garner long-lasting strength in the strategic leadership. 
  • India has to deeply watch and act on the broader geopolitical developments, including US–China rivalry. 
• Act East Policy (AEP): The year 2024 demarcates the tenth anniversary year of the AEP. 
  • The AEP, which replaced the Look East Policy (LEP) in 2014, has laid the foundations for India’s engagements with the East. 
  • For its next phase, a new AEP agenda must come in the initial months of the Indian PM’s third term. 
  • The Act East policy seeks to strengthen India’s economic and strategic ties with countries in Southeast Asia and East Asia. 
• Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC): BIMSTEC is going to observe a higher pace, the Charter is already in place. Members are interested in deepening the relationship. 
  • The sixth BIMSTEC Summit is going to take place in Bangkok in September 2024. The BIMSTEC is likely to induct three new members (Malaysia, Indonesia, and Singapore). 
• Others:
  • South Asian Association for Regional Cooperation (SAARC): The SAARC requires gradual reactivation provided India-Pakistan relations become normal. 
  • BRICS or IBSA: Dealing with the Global South, India continues to drive developing countries interests through the BRICS or IBSA. 
    • It would be of great achievement if India ensured entry into the UN Security Council as a permanent member. 

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Trade and Economic Partnerships

• Free trade Agreement (FTA): FTAs are important for India to raise exports, attract FDI, and secure valuable technologies. India will continue with new FTAs and would like to conclude the one with the UK, the EU, Bangladesh, among others. 

• • Besides, a review of FTAs such as with ASEAN is likely to be concluded. 
  • India is becoming increasingly integrated with neighbouring countries and regions. Bilateral partnerships with Australia, Bangladesh, Bhutan, Brazil, Indonesia, Japan, Kenya, Korea, Mauritius, Oman, Tanzania, Singapore, etc. will continue to thrive. 
  • India might opt for more bilateral strategic partnerships and services-led FTA such as with the Philippines. 
  • The bilateral FTAs with Middle East Countries such as the India-UAE CEPA, and initiatives like I2U2 or the IMEC are going to play a larger role in securing India’s strategic interests on the Western front. 
  • Now countries are more interested in trade agreements in the areas of digital economy and e-commerce. 
• Russia, and China are the countries with which India does not have any FTA, whereas India heavily depends on them for security and economic reasons. 

Collaboration with Private Sector

• To Ensure Multiple Objectives: India’s foreign office will have to collaborate with India’s thriving private sector while ensuring India’s strategic and economic objectives. 
• Arenas: More and more public-private partnerships are likely to unfold in the coming days in the areas of physical and digital connectivity, space and under-sea explorations, science and technology cooperation, etc. 
  • This is an opportunity for the newly formed government that should not miss. 

Importance of India’s Foreign Relations

• To Achieve the Target: While ‘Vishwa Bandhu’ (India) is aiming for Viksit Bhart in the next 25 years, deepening global partnership would help achieve the US$ 5 trillion economy which will further strengthen the foundations for 2047. 
• For Better Global Governance: In a multipolar world, India’s strategic autonomy with a network of strategic partnerships will be central in the path towards better global governance. India needs the world, and the world needs India.
• To Play Significant Roles: As the fastest-growing major economy and the fifth-largest GDP globally, India’s priority is rapid economic development. The growth in capacity and capability is coupled with a willingness to play her due role in regional and global affairs. 
  • India is known for its rules-based institutions globally and continues to play a larger role in the global arena. 
• To Focus on Contemporary Issues: India’s leadership on global issues in this uncertain situation has been welcomed by all partners. However, specifics such as climate change, reforms of multilateral organisations, energy and food security, taming inflation, etc. need careful handling. 

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Conclusion

The Indian PM’s third term may be termed as “Sabka Saath Sabka Vikas Sabka Vishwas Sabka Samman”. To achieve the best of the potential, India needs to focus on the governance reforms in MEA-aided organisations, strengthening state capacity, new and reformed knowledge centers, and setting up centres of excellence on the maritime front.