Global Optimism Towards India: RSTV- Big Picture

Rajya Sabha TV programs like ‘The Big Picture’, ‘In Depth’ and ‘India’s World’ are informative programs that are important for UPSC preparation. In this article, you can read about the discussions held in the ‘Big Picture’ episode on “Global Optimism Towards India” for the IAS Exam.

Global Optimism Towards India:- Download PDF Here

Anchor: Frank Rausan Pereira

Guests:

1- Manjeev Singh Puri, Former Ambassador

2- Prof. Swaran Singh, Chairperson, Centre for International Politics, JNU

3- Patrick Gerard Buchan, Director, Center for Strategic & International Studies

What’s in the news?

  • India offers a perfect combination of openness, opportunities, and options for other nations to invest in a variety of sectors in the country.
  • In the post  Covid-19 new world order, there is global optimism towards India.
  • The world is looking towards India to play a major role in the Indo-pacific region and beyond, to look for multi-faceted solutions in the short and long term.
  • Bilateral meetings and summits addressed by the Indian Prime Minister have  created  fruitful outcomes.

Why are several nations around the world looking towards India?

  • India has become the fifth largest economy in the world.
  • The International Monetary Fund (IMF) projects India to be the fastest growing major economy in 2020.
  • India has developed closer relations with other major democracies of the world.
    • India is negotiating dialogue with QUAD plus grouping.
    • It has welcomed the idea of the US for convening an expanded gathering of the G-7 leaders including Australia, South Korea along with India.
  • India is becoming an attractive economic destination globally.
    • Owing to the anti-China sentiment in the US and other nations,  leading multinationals are shifting bases from China to India, Vietnam and Taiwan.
  • What makes India an attractive destination for economic investment ?
    • Nearly 18% of the global population stays in India.
    • Before the Covid-19 pandemic,  India had reached the highest mark of Foreign Direct Investment (FDI) of about  49 billion dollars already.
    • China was the second largest FDI recipient in 2019. After the pandemic India is likely to attract more foreign investment in various sectors.
    • New wave of economic reforms being introduced in India like revised labour laws, relaxations for the MSMEs, corporate tax reductions to 22% and only 15% taxation for new manufacturing companies (which will be set up after October 1, 2020) makes India an attractive destination for investment.
    • The Covid-19 pandemic is estimated to shrink the world GDP output by 3% in 2020. India has a relative advantage of 1.9 % growth. It is among leading economies of Asia besides China.

India in the global perspective:

  • The US considers India as a major strategic partner and acknowledges the huge success of the Indian diaspora in the US.
  • The US is keen on a strategic and multi-faceted  partnership with India in the Indo-Pacific region. It also wants  to involve smaller powers like Japan, South Korea and Australia.
  • India has currently adopted a flexible foreign policy instead of its post independence non alignment stance, by associating with other nations with similar interests.
  • India has become more active in participating in various bilateral and multilateral forums.
  • Geographically India is situated between two oceans which make it an ideal geo-strategic power.
  • The US considers India, a perfect partner in its efforts towards offsetting rising Chinese expansionism.

India’s relationship with it’s neighbours in the present scenario:

  • The Reserve Bank of India (RBI) has signed a currency swap agreement with the Central Bank of Sri Lanka.
    • The agreement was signed under the SAARC Currency Swap Framework 2019-22 would be valid till November 13, 2022.
  • India has signed a trans-shipment deal with Bangladesh for trans-shipment of goods to its North-eastern states through Bangladesh’s Chattogram (Chittagong) port.
  • India demonstrated its “neighbourhood first” policy by sending medical aid and food supplies to Maldives, Mauritius, Seychelles, Madagascar, and Comoros onboard Indian Naval Ship ‘Kesari’ in its Operation Samudra Setu.
  • India presents an attractive investment market to the neighbouring countries. It is also a huge consumer market for goods and services from these nations.
  • India is a major supplier of medical assistance to neighbouring countries, especially  Nepal.
  • A  high level trade and investment dialogue underway to oversee the finalisation of India – EU Free trade agreement.
  • India has become the second-largest source of foreign direct investment (FDI) in the United Kingdom
  • India is growing  both in terms of outflow and  inflow of FDI and  transfer of  technologies across various platforms.
  • India  is taking up FTA negotiations with the US in the defence and energy sectors.
  • The first batch of the Rafale fighter jets from France ( under the  inter-governmental agreement with France for 36 Rafale to boost the IAF’s combat capabilities)  has  reached India.

The best way forward:

  • In the new global scenario, India could consider reviving Free Trade Agreement (FTAs) like the Regional Comprehensive Economic Partnership (RCEP).
  • India should continue to expand its economic potential and carve out an important strategic position in the world.
  • The Indian PM highlighted during the US  Business Council’s Ideas Summit 2020, that India is focusing on ‘Openness, opportunities and options’ when it comes to the Indo- US  relations.
  • The US must acknowledge the contribution made by Indians to the growth of the US economy and must revamp it immigration rules for Indians.
  • India could become the factory of the world, as Indian MSMEs are rapidly scaling innovation and manufacturing to take advantage of the new opportunities.
  • Countries like Japan and Australia should cooperate with the US and India in the Indo-Pacific region to push back China.

Global Optimism Towards India – RSTV:- Download PDF Here

Read previous RSTV articles for the IAS exam here.

 

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