Download India-foreign policy profile

Ljubljana, 5. 11. 2007
UNIVERZA V LJUBLJANI
FAKULTETA ZA DRUŽBENE VEDE
FOREIGN POLICY PROFILE OF INDIA
Political science – International relations
Primec, Urška, index number: 21040738
Menthor:
Šabič, Zlatko, Ph. D.
Subject:
International organizations
1
The Republic of India is becoming a country of more and more influence in the international
arena, a country which is viewed by others as a major power and also a country with all the
potentials to become a superpower. India was historically always open to collaborate with
other countries and is now considered to be a leader of the developing world. 1
India’s foreign relations reflect a traditional policy of nonalignment, the exigencies of
domestic economic reform and development and the changing post-Cold War international
environment. After the British colonial period (1757-1947), when India became independent,
the country spread its ties around the world making it sure the rest of the world would
consider it a significant player especially in its own region. On independence in 1947, few
Indians had experience in making or conducting foreign policy. However, the country's oldest
political party, the Indian National Congress, had established a small foreign department in
1925 to make overseas contacts and to publicize its freedom struggle.2
As already mentioned, during the Cold War India adopted a foreign policy which emphasized
nonalignment with any major power bloc. Obviously the policy did not come right since the
country developed relations with the Soviet Union and so consequently received significant
military support from the latter. This strong military relationship with Russia continues to this
date. 3
The primary goal of India’s foreign policy is to ensure an external environment that is
conducive to India's transformation and development. Broadly there are three sets of
challenges: firstly, ensuring a peaceful periphery; secondly, relations with the major powers;
and, thirdly, issues of the future, namely food security, water, energy and environment.
Regarding the diplomatic and economic relations with the rest of the world, India wishes to
strengthen them, especially with the United States, the People's Republic of China, European
Union, Japan, Israel, Latin America, and the Association of Southeast Asian Nations. Also,
India nourishes ties with the African Union, the Commonwealth states and the Arab World.4
1
U.S. Department of state (2007) Background note: India, available on:
http://www.state.gov/r/pa/ei/bgn/3454.htm (3.11.2007)
2
Ministry of external affairs (2007) India profile, available on: http://meaindia.nic.in/index.htm (3.11.2007)
3
U.S. Department of state (2007) Background note: India, available on:
http://www.state.gov/r/pa/ei/bgn/3454.htm (3.11.2007)
4
Ministry of external affairs (2007) India profile, available on: http://meaindia.nic.in/index.htm (3.11.2007)
2
India is very active in the international organizations from the very beginning of their
establishment, namely it was one of the founding members of the United Nations. It is also
active in other important international organizations, such as WTO, ADB, SAARC, G8+5,
East Asia Summit and G20.
Bilateral and Regional Relations
Due to its growing economy, strategic location, friendly foreign policy and large and vibrant
Diaspora, India is considered a country with more allies than enemies. Not only it
continuously preserves relations with the countries in the region it also seeks to ensure close
relationship with all of the major powers, even though it is not part of any major military
powers.
Relations with Pakistan
With Pakistan, India has consistently pursued a policy seeking to improve relations under the
framework of the Simla Agreement signed in 1972 which provided for the resolution of
outstanding issues peacefully and bilaterally and for establishing durable peace in the Subcontinent. This dispute triggered wars between the two countries in 1947 and 1965 and a
limited conflict in 1999. The state remains divided between the two countries by the Line of
Control (LoC), which demarcates the ceasefire line agreed upon in the 1947 conflict. Pakistan
refers to its part of the state as Azad Kashmir. India terms it Pakistan Occupied Kashmir
(PoK). Bilateral discussions with Pakistan have resumed recently and India would continue
efforts to have good neighborly relations with Pakistan. 5
Relations with South Asia
An important achievement of India's foreign policy has been the strengthening of regional cooperation. India is an active member of the South Asian Association for Regional Cooperation
(SAARC) which was launched in December 1985. Its members are Afghanistan, Bangladesh,
Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. SAARC encourages cooperation in
agriculture, rural development, science and technology, culture, health, population control,
narcotics control and anti-terrorism. With India's full support, SAARC has recently taken
significant steps in accelerating the pace of economic co-operation. The South Asian
5
U.S. Department of state (2007) Background note: India, available on:
http://www.state.gov/r/pa/ei/bgn/3454.htm (3.11.2007)
3
Preferential Trade Arrangement (SAPTA) became operational in December 1995. At the 9th
SAARC Summit in Male in May 1997, which was chaired by India, a historical decision has
also been taken to strive for a South Asian Free Trade Area (SAFTA) latest by the year 2001
AD. The emergence of the Indian Ocean Rim Association for Regional Co-operation (IORARC) in March 1997, as a major instrument of cooperation in the larger region, has also had
the active support of India.6
Relations with China
With China the aim of Indian foreign policy has been of developing a relationship of
friendship, cooperation and good neighborliness, exploiting the potential for favorable growth
wherever it exists, even as they seek to find a fair, reasonable and mutually acceptable
solution to the outstanding border issue. Towards this aim, a series of high level visits have
been exchanged, bilateral trade and economic cooperation is growing, and an Agreement on
Confidence Building Measures, as part of a wider dialogue on security, has been signed.7
Relations with Russia
Indian foreign policy received a major impact after the collapse of the Soviet Union and the
emergence of the Commonwealth of Independent states. Substantial trade with the former
Soviet Union suffered considerably after the Soviet collapse and has yet to recover. Also, the
supply of military goods was suspended due to questions over financing. However, it remains
that Russia carries on to be India's largest supplier of military systems and spare parts. The
relationship between two powers is not what is used to be, since they have not renewed the
1971 Indo-Soviet Peace and Friendship Treaty. As they describe it, a more pragmatic, less
ideological relationship is being followed.8
Relations with the European Union (EU)
EU-India relations go back to the early 1960s, when India was amongst the first countries to
set up diplomatic relations with European Economic Community (EEC). The institutional
basis for EU-India political dialogue is a Joint Political Statement signed simultaneously with
6
South Asian Association for Regional Cooperation (SAARC) (2007), available on: http://www.saarcsec.org/main.php (3.11.2007)
7
U.S. Department of state (2007) Background note: India, available on:
http://www.state.gov/r/pa/ei/bgn/3454.htm (3.11.2007)
8
U.S. Department of state (2007) Background note: India, available on:
http://www.state.gov/r/pa/ei/bgn/3454.htm (3.11.2007)
4
the 3rd generation Co-operation Agreement. It fixed annual ministerial meetings, and opened
the door to a broad political dialogue.
The European Community (EC) has developed a cooperation strategy which seeks to help
India to build its "human capital" by dedicating its resources to making elementary education
universal, improving health services in favor of the hitherto deprived population groups and
restoring and safeguarding a healthy environment. Due to the historical conditions there is a
special relation between the United Kingdom (UK) and India and these two still have many
enduring links, like substantially large Indian Diaspora living in UK and the fact that the
English language is widely understood and spoken in India. Also, the economic relationship
between them is strong, namely India is the second largest investor in Britain after the United
States of America (US) and Britain is one of the largest investors in India.9
Relations with the United States of America (US)
India and the US represent two of the largest democracies. After India became independent
and as India dominated the Non-Alignment Movement, the relations between them became
somewhat cold. The US clearly did not like the attempt by India to pursue even-handed
economic and military relations with the Soviet Union. For most of the Cold War, the US
tended to have warmer relations with Pakistan, primarily as a way to contain Soviet-friendly
India and to use Pakistan to back the Afghan Mujahideen against the Soviet occupation of
Afghanistan. An Indo-Soviet twenty year friendship treaty also positioned India against the
US. Relations between India and the US deteriorated during the early 1970s, because the
latter showed no effort to discourage the Pakistan President and the Pakistan Army from
committing atrocities allegedly being perpetrated in East Pakistan by Pakistani forces.
However, the end of the Cold War brought fresh air into their weak relations. The reason for
this shift lies in the increasing recognition, in both India and the US, of each country's
strategic and economic importance to the other.10
9
The EU's relations with India (2007), available on: http://ec.europa.eu/external_relations/india/csp/index.htm
(4.11.2007)
10
Embassy of India, Washington D.C (2007) India's Foreign Policy - 50 Years of Achievement, available on
http://www.indianembassy.org/policy/Foreign_Policy/fp(intro).htm (4.11.2007)
5
International disputes
One of the important issues that compose India's foreign policy are territorial disputes with
neighboring Pakistan and People's Republic of China which have played a crucial role in its
foreign policy. India is also involved in minor territorial disputes with neighboring
Bangladesh, Nepal and Maldives. India currently maintains two manned stations in Antarctica
but has not made any official territorial claims.11
Trade and liberalization
The Indian economy comprises a wide spectrum of activity, ranging from high technology to
subsistence agriculture. After decades of failing to realize its full economic potential, India
was one of the world's fastest growing large economies between 1994 and 2006. Indian
economic engagement with the rest of the world has increased, particularly in the services
sector. Despite recent progress, significant challenges remain, including addressing the fiscal
deficit and government debt and improving infrastructure. Another challenge is to ensure that
the benefits of economic growth are experienced more widely. Despite the emergence of tens
of millions from poverty during the 1990s, average incomes and literacy levels remain low
and India is one of the largest recipients of World Bank lending. India's score in the United
Nations Human Development Index has increased marginally over recent decades, but it is
still very low, at 126th in 2006. While selective economic reform was attempted from as early
as 1960, the reform process began in earnest in 1991 due to a balance of payments and foreign
currency reserve crisis. This reform process has focused on liberalizing the economy through
increased openness to financial and technology transfers, reform of the financial sector, trade
liberalization and reduced government administrative controls. GDP growth has been strong,
with an annual average growth of 5.8 per cent from 1994-2004 and growth of 9.4 per cent in
2006-07. Capital inflows have increased, contributing to a significant rise in foreign exchange
reserves, making India better placed to withstand external shocks. The structure of the
economy has changed over the past decade, with services playing an increasingly important
role. This dominance of services is unusual for a low-income country such as India. It
demonstrates the difference between India's services-led economic growth and the
manufacturing-led development model followed in much of east Asia, including China.
However, this reliance on services may be difficult to sustain and some economists argue that
11
The World Factbook, CIA India (2007), available on: https://www.cia.gov/library/publications/the-worldfactbook/geos/in.html(.5.11.2007)
6
India will have to generate stronger manufacturing growth to continue current levels of
economic performance.12
Human Rights
Due to the facts that India is large in size and so holds tremendous diversity, has status as a
developing country and has a history as a former colonial territory, the situation of human
rights is multilayered. Caste system in India still exist and it is often argued, especially by the
Indian human rights groups and activists, that the members of Untouchable caste have
suffered and continue to suffer substantial discrimination. Although human rights problems
do exist in India, the country is generally not regarded as a human rights concern, unlike other
countries in South Asia. India also has an influential, independent and vibrant media which
has played a crucial role in upholding human rights in India.13
India and the United Nations (UN)
As a founder member of the United Nations, India has been firmly committed to the purposes
and principles of the United Nations and has made significant contributions to its various
activities, including peace-keeping operations. India has been a participant in all its peacekeeping operations including those in Korea, Egypt and Congo in earlier years and in
Somalia, Angola and Rwanda in recent years. India has also played an active role in the
deliberations of the United Nations on the creation of a more equitable international economic
order. It has been an active member of the Group of 77, and later the core group of the G-15
nations. Other issues, such as environmentally sustainable development and the promotion
and protection of human rights, have also been an important focus of India's foreign policy in
international forums. India has been pushing for reforms in the UN and WTO with mixed
results. India's candidature for a permanent seat at the UN Security Council is currently
backed by several countries including United Kingdom, France, Germany, Japan, Brazil and
African Union nations.14
12
Ministry of external affairs (2007) India in business, available on:
http://www.indiainbusiness.nic.in/economy/economic_snapshot.htm (5.11.2007)
13
National Human Rights Commission New Delhi, India, available on: http://nhrc.nic.in/ (5.11.2007)
14
United Nations (2007) India and United Nations, available on: http://www.un.int/india/india_un.html
(5.11.2007)
7
Proliferation
India has yet to sign the Comprehensive Nuclear-Test-Ban Treaty (CTBT), or the Nuclear
Non-Proliferation Treaty (NPT), claiming the discriminatory nature of the treaty that allows
the 5 declared nuclear countries of the world to keep their nuclear arsenal and develop it using
computer simulation testing. Prior to its nuclear testing, India had pressed for a
comprehensive destruction of nuclear weapons by all countries of the world in a time-bound
frame. This was not acceptable to the US and other countries. Presently, India has declared its
policy of "no-first use of nuclear weapons" and the maintenance of a "credible nuclear
deterrence". In 2005, the United States signed a nuclear co-operation agreement with India
even though the latter is not a part of the NPT. The US argued that India's strong nuclear nonproliferation record made it an exception and persuaded other Nuclear Supplier Group (NSG)
members to sign similar deals with India.15
Globalization
The implications of globalization for a national economy are many. Globalization has
intensified interdependence and competition between economies in the world market.
Although there is a preposition amongst many critiques that globalization leads to the
disintegration of the economy and destabilization of the economy, it can still be argued that
globalization has helped the Indian economy. The liberalization of the domestic economy and
the increasing integration of India with the global economy have helped step up GDP growth
rates. Even though poverty declined, India still badly suffers from it.
However, while India's money-spinning industry of taking service jobs from overseas is
turning out to be a source of discomfort for U.S. and European politicians, the subcontinent is
fast realizing that its now-famed success in so-called Business Process Outsourcing may have
come at the cost of a generation's mental well-being.16
15
U.S. Department of state (2007) Background note: India, available on:
http://www.state.gov/r/pa/ei/bgn/3454.htm (3.11.2007)
16
U.S. Department of state (2007) Background note: India, available on:
http://www.state.gov/r/pa/ei/bgn/3454.htm (3.11.2007)
8
List of References:
Embassy of India, Washington D.C (2007) India's Foreign Policy - 50 Years of Achievement,
available on:
http://www.indianembassy.org/policy/Foreign_Policy/fp(intro).htm (4.11.2007)
Indian Ministry of external affairs (2007) India profile, available on:
http://meaindia.nic.in/index.htm (3.11.2007)
National Human Rights Commission New Delhi, India, available on:
http://nhrc.nic.in/ (5.11.2007)
Ministry of external affairs (2007) India in business, available on:
http://www.indiainbusiness.nic.in/economy/economic_snapshot.htm (5.11.2007)
South Asian Association for Regional Cooperation (SAARC) (2007), available on:
http://www.saarc-sec.org/main.php (3.11.2007)
The EU's relations with India (2007), available on:
http://ec.europa.eu/external_relations/india/csp/index.htm (4.11.2007)
The World Factbook, CIA India (2007), available on:
https://www.cia.gov/library/publications/the-world-factbook/geos/in.html (.5.11.2007)
United Nations (2007) India and United Nations, available on:
http://www.un.int/india/india_un.html (5.11.2007)
U.S. Department of state (2007) Background note: India, available on:
http://www.state.gov/r/pa/ei/bgn/3454.htm (3.11.2007)
9