Role of Foreign Policy in Extending International

Transcript:Role of Foreign Policy in Extending International:
Role of Foreign Policy in Extending International Footprint of Indian Business Dr Jaimini Bhagwati 3 August 2016 Economic Diplomacy Economic diplomacy has always been integral to India’s foreign policy After the game changing industrial and import delicensing economic reforms plus devaluation of the Rupee post 1991 when Narasimha Rao was PM a more conscious approach was taken Partnership with Private Sector India’s private sector has lobbied for government to push its cause with international trading and investment (FDI and portfolio investment) partners For example, Confederation of Indian Industry (CII) and FICCI have sought the Indian government’s support in engagement with/through the Indian diaspora and development cooperation programmes e.g. in Africa, South and Central Asia Multilateral Bodies & Trade Agreements Ministry of External Affairs and the nodal Ministries concerned have strengthened aid and lending linkages and engagement with and via the World Bank, IMF, AIIB, BRICS New Development Bank, G 20 and SAARC Additionally a number of bilateral and multilateral trade agreements have been signed e.g. with Sri Lanka, ASEAN, Afghanistan and Chile Bilateral Trade in Goods* (US$ billions) – 2014 *Goods exports of country in top most row to country in extreme left column Source: UNCTAD Bilateral Trade in Goods 2014 (Contd.) In 2014 India’s two-way trade in goods with the US (India’s exports of $45.2 billion plus US exports to India of $22 billion) was 10.8 per cent of China’s trade with the US (China’s exports of $466.7 billion and US exports to China of $159.8 billion). Similarly, in 2014 India’s two-way trade with Japan was a mere 4.9 per cent of China’s trade with Japan Why is the European Union not mentioned? Two-way Bilateral Trade as percentage of Total Trade – 2014 Two-way trade of country in top most row with country in extreme left column as a percentage of top row country’s global trade Source: UNCTAD Two-way Bilateral Trade as percentage of Total Trade – 2014 (Contd.) India’s two-way trade with China was 9.7 per cent of India’s total global trade while India accounted for only 1.7 per cent of China’s global trade Bilateral trade for USA, Japan and ASEAN with China is a larger fraction of their global trade than the corresponding numbers for China Energy Security The priority accorded to Energy Security has resulted in ONGC-OVL making investments in countries such as Sudan, Iran, Nigeria and Kazakhstan Civil nuclear power cooperation has been given importance