India’s diplomatic success

India has established mutually beneficial bilateral and multilateral relations with various countries; it is a member of pertinent alliance systems like BRICS (Brazil, Russia, India, China and South Africa), Quadrilateral Security Dialogue (QUAD), which includes Australia, Japan, and the US, and the Association of SouthEast Asian Nations (ASEAN).

India’s tactful handling of international relations has transitioned the country from a ‘non-allied’ country to an ‘ally’ of all. India is going to be part of a new alliance in the making, the I2U2, which includes Israel, the US and the UAE.

Inclusion in alliance systems has benefitted India in three ways. First, the perception of India as a non-allied country has been changed; second, its trade relations with ally countries have improved, leading to foreign investments; third, India’s ‘say’ in international politics has become meaningful.

Other than becoming part of alliances, India has adroitly developed bilateral relations with various countries. India has free trade agreements (FTAs) with 13 countries, including economic giants like the US and Australia. It is also in the process of negotiating an FTA with Israel. India has preferential market access and economic cooperation agreements with over 50 countries.

India’s ‘Act Asia’ policy opened up India with countries in the Far East. In 2021, Singapore was the top investor in India with investments worth $15. 7 billion. In pursuance of the ‘Act Asia’ policy, India concluded FTAs with ASEAN countries, Japan and Korea. Indian exports to Korea alone stands at $8 billion.

Most interestingly, despite targeting the Muslim minority within, India is vigorously improving its relations with Muslim countries, including Afghanistan; it is the first country to conclude a strategic partnership agreement with Afghanistan in 2011. In the post-US-withdrawal scenario, India is keenly looking at developments in Afghanistan and is fervent to establish relations with the country. It facilitated a regional dialogue on Afghanistan in 2021 to bring all stakeholders to the table. China and subsequently Pakistan did not take part in the moot.

Other than Afghanistan, India is successfully engaged in terms of trade with various other Muslim countries. Indian exports to Saudi Arabia are nearly $8 billion. Its exports to Iraq are $2 billion; UAE, $28 billion; Bangladesh, $16 billion; Qatar, $1 billion; Nigeria $4 billion; Malaysia, $6 billion; and Indonesia, $8 billion.

India is maintaining ‘strategic autonomy’ in its relations with all countries. Notwithstanding the pressure from the US, it is astutely maintaining its relations with Iran. In early June this year, Iran’s Foreign Minister Hossein Amir-Abdollahian visited India. Also, the country is all set to attend the maiden I2U2 summit along with the UAE, Israel and the US. On the one hand, it is engaging with Israel, Saudi Arabia and the US, and on the other, it is solidifying its relations with Iran. India is the only country to get a waiver from sanctions on Iran to buy crude oil.

This shows India’s success in diversifying its relations and keeping the ability to proceed internationally on its terms. India also has good relations with Russia. Its exports to Russia are around $3 billion. And, according to ‘Reuters’, Russia remained a top supplier of crude oil to India in April 2022. Despite the fact that the EU and the US are vehemently opposing Russia on the Ukraine situation, India has adamantly refrained from doing so.

India abstained from the UN vote to remove Russia from the Human Rights Council and various other procedural votes against it. Surprisingly, the West, including the US, has accepted India’s stringent behaviour regarding its relations with Russia and Iran. In a recent press conference, Spokesperson of the US Department of State Ned Price said, “[The] US has sought a partnership with India, has sought to be a partner of choice for India, including when it comes to the reality realm”. And he added that the US had made it clear to “our Indian partners that we are there for them, we are ready and able and willing to partner with them, and we’ve done just that.”

Even China is keen to have working relations with India. China has been the largest trading partner of India, other than the US. The two countries’ bilateral trade reached $31 billion in the first quarter of 2022, indicating an increase of about 15 per cent from the previous year. This again is a success of Indian diplomacy; that despite being used as a ‘counterweight’ of China by Western nations, India is actively engaged in economic relations with China.

India has transitioned from a protectionist country to a global trading partner. It has improved the procedures of doing business in the country. In a report prepared by the World Bank, ‘Ease of Doing Business’, India stands at 63rd position. Pakistan is at 108th position, out of 188 countries. This improvement in the ranking is partly due to the fact that India had attracted foreign direct investment of around $572 billion between April 2000 and December 2021.

The question is: why are countries eager to establish security and economic relations with India? The two-pronged answer to this question is: first, India appears to be an eligible country that can be ‘prepared’ against the Chinese economic expansion which threatens the Western order. Therefore, the US and other Western countries are more than willing to establish security and economic relations with India. Second, countries that are investing in India, irrespective of the global competition, are doing so because of the country’s investment-friendly procedures and political stability.

For investment to take root, stability is the first prerequisite. In order to generate economic activity, internal capacity constituting stability and investment-friendly mechanisms need to be built. With stability within, India is now on the road to become the third biggest economy.

The writer is a research analyst at the Institute of Regional Studies, Islamabad.