Monday, May 26, 2014

Beginning of the emergence of India as a World leader

When India became independent in 1947, the world was still recovering from the disturbing effects of the World War II. The newly formed Government of India, due to it's Socialist policies and inclinations, was seen inclined towards the Soviet Union, though we were officially non-aligned. In 1991, things have changed. World witnessed the dissolution of the Soviet Union and India too, under PV Narasimha Rao, saw a radical shift in it's economic policies. India had then just started opening up it's markets to the world due to the Liberalization, Privatization, Globalization (Dubbed as LPG policies) of Narasimha Rao government. This was when the US saw it's commercial interests in India and started coming closer to us. From 1991, till date, except for a brief period of time after the Pokhran Nuclear Tests by India, Indo-US relations have been continuously growing to new heights. Indo-US relations scaled to their all time high when Prime Minister Manmohan Singh signed the Indo-US Nuclear deal. 

Despite all this, there is a great amount of discontent among those Indians who closely follow our foreign policy. We appear as a soft state and haven't been able to exert pressure on the US to act tough against Pakistan. Though hundreds of thousands of Indians today work in the US and American companies employ thousands of Indians in India, we have to realize that it is the American economy which is benefiting out of India and not the other way round. We haven't been able to bargain strategic interests from America in lieu of the business opportunities which we are providing them.

With Prime Minister Narendra Modi taking charge, we are likely to witness a drastic shift in our foreign policy. Knowing PM Modi's Nationalistic approach, it will be difficult for the US to expect one sided gains in the Indo-US relations. India's priorities will be aimed at strengthening ties with those nations where we see mutual benefit, both commercially and strategically. Modi inviting all the heads of SAARC nations to his swearing-in ceremony marks the beginning of India's departure from it's earlier diplomatic positions. India now appears to be more aggressive in pursuing the "Look East Policy". With America reaching a point of economic saturation and the European economy in doldrums, India should first put in efforts to befriend all Asian nations. The combined power and potential of the Asian economies put together is yet to be recognized by the world. 

If we look at South-East Asia, both Japan and South Korea are deeply uncomfortable with China's aggressive posturing. So are we. Therefore, India's relations with Japan and South Korea will ensure China is kept on a back foot. This also gives us a strategic advantage in the South-China Sea where India's ONGC is involved in Oil Exploration. Strengthening ties with Japan also has an additional advantage for us. Japan is facing a challenge of aging population and inadequate productive population. This is where India can pitch in and help Japan. India's young population can actively be engaged on Japanese companies. On the other hand, we can seek the help of  the Japanese in building our manufacturing industry. Japan is a world leader in manufacturing and their help will be very useful to India. This will help us reduce our imports from China, thereby creating a self-driven, self-sustaining Indian industry and a subsequent reduction in our trade deficit. 

Let us hope that India, under the leadership of Narendra Modi, emerges as a Friendly-Yet-Assertive, Compassionate-Yet-Powerful nation in the world.