- Home
- Prelims
- Mains
- Current Affairs
- Study Materials
- Test Series
EDITORIALS & ARTICLES
(a) Would you concur with the view that of late, India’s foreign policy has been in a transition mode from Nehruvianism to Neoliberalism? Support your answer with the help of suitable examples. 20 Marks 6. (b) Does the idea of the 21st century as ‘Asian century’ continue to remain feasible given the growing friction between India and China? 15 Marks 6. (c) Discuss the potential role that India could play as the leader of the Global South in realising the goal of establishing a new international economic order in the 21st century. 15 Marks (UPSC CSE Mains 2024- Political Science and International Relations, Paper 2).
(a).
India was probably the country that went further in the direction of economic planning and state intervention without breaking with Third World capitalism. The development of a national industry, a commitment towards the State and a secular policy, and the defense of non-alignment in the Cold War were fundamental pillars of the political horizon established in the country under the leadership of Jawaharlal Nehru and prevailed in India from independence in 1947 to the neoliberal inflection in the 1990s. The shift to Neoliberalism began in the early 1990s, particularly after India’s economic liberalization. The 1991 economic reforms marked a departure from Nehruvian policies, with India embracing open markets, trade liberalization, and foreign investment. As a result, India''s foreign policy began to prioritize economic interests over ideological stances. For example, the Look East Policy (1991), which later evolved into the Act East Policy, focused on strengthening ties with Southeast Asia, driven by economic considerations rather than purely political ideology.
‘Neoliberalism’ advocates a free market, laissez-faire economy. Neoliberal institutionalism lays emphasis on economic interdependence which has been a marked feature of international politics in the post-Cold War period. Such interdependence leads to inter-connectedness and linkage that ensures peace and reduces the probability of conflict between states. The concept of geo-economics that seems to guide foreign policy behaviour of states today is occasioned by the interlocking of interests that lead to what some writers have termed as ‘complex interdependence’. A neoliberal foreign policy warrants cooperation in the economic sector irrespective of political and ideological differences among states. In recent decades, India has shown its inclination for neoliberalism as far as its foreign economic policy is concerned. There is an underlying optimism that such interaction would create a web of interdependence that would engender greater mutual understanding and harmony.
In its relations with the outer world, India has emphasised free trade agreements (FTAs) and expressed its desire to toe a neoliberal line. India is in the process of signing FTAs with many countries, often privileging trade and commerce over political considerations. India has either negotiated or signed FTAs with more than 35 countries and consultations are on with many other counties. Neoliberal foreign policy has been the trend the world over in the days of globalisation and hyper-communication. However, despite the advent of neoliberalism, most countries including India do resort to soft-protectionism in the name of cushioning the domestic economy or in their dealings with states perceived as hostile. Even powerful countries like the United States have also demonstrated their selective aversion to free trade. The smaller neighbours of India continue to talk about non-tariff and para-tariff barriers being raised by India to disallow commodities from the neighbourhood in the name of protecting domestic producers. Thus, while India’s foreign policy may be taking an inevitable neoliberal turn, its pace and progress will continue to be delimited by realist considerations that define its national interest.
India’s foreign policy has undergone significant transformations since its independence, with a notable shift from Nehruvianism to Neoliberalism in recent decades. While Nehruvianism emphasized non-alignment, self-reliance, and a strong focus on maintaining India''s sovereignty without aligning with any major power bloc, Neoliberalism is characterized by a greater emphasis on economic globalization, market-oriented policies, and deeper integration into the global economy.
Nehruvianism: Nehruvian foreign policy was defined by principles such as Non-Aligned Movement (NAM), anti-colonialism, and promoting world peace. The primary objective was to ensure India''s independence from the Cold War power politics and maintain a stance of neutrality in global affairs. For instance, Nehru was deeply involved in shaping the Non-Aligned Movement, which sought to create a third path for newly independent countries, separate from the superpower rivalries between the U.S. and the Soviet Union.
While the Nehruvian ideals of independence and sovereignty still resonate, the neoliberal approach focuses more on pragmatic economic growth and international collaboration.
(b).
The idea of the ‘Asian Century’ argues that the 21st century international order is going to be defined by Asia’s pre-eminence, the way the US pre-eminence defined the international order in the 20th century and Europe in the 19th century. It is also seen as Asian countries’ mutual rediscovery in terms of reconnection and reintegration. It seeks to repair artificial divisions in the Asian social, economic and cultural space that colonial interventions created. This idea appeared in the early 1990s when the world began sensing Asia’s economic resurgence. The end of the Cold War facilitated it.
India-China relationship in realising Asian Century
- Economic development: Asia is experiencing robust economic performance over the three decades, spearheaded by India and China. Asian century can’t be realised without economic development of the two countries and moving out millions of people in the region out of poverty. Both nations must enhance bilateral relations in a positive way leading to a path of development.
- Demographic dividend: Population growth in Asia is expected to continue for at least the first half of the 21st century. This will result in huge demographic dividend in the region. Thus coordination between two nations by providing opportunities and employment driven by economic growth is necessary.
- Investment: India and China relations has not reached full potential due to lack of bilateral investments. Where China can provide market for India to invest in the pharmaceutical industry, agricultural products, software industry; India is a market for China for its technological industry. Creation of New Development Bank, Asian Infrastructure Investment Bank, and Asian Development Bank are new engine of growth in the region. These institutions would fail without cooperation among New Delhi and Beijing.
- Success of new organisations: New Organisations like Shanghai Cooperation Organisation and economic deals like Trans Pacific partnership and RCEP are indicator of Asia emerging as a centre for geo-economics and geo-politics. These platforms as a centre of Asian century would be successful only when two engines of growth cooperate with each other and work together.
- Regional Stability: Asian century can’t be realised under the threat of terrorism. It has impacted regional structures in South Asian countries in a negative way. It is very important for two countries to stand together against terrorism to promote stability in the region. Regional stability would ensure mutual growth.
- Trade: China is India’s largest trading partner. Chinese imports from India amounted to $16.4 billion or 0.8% of its overall imports, and 4.2% of India’s overall exports in 2014. The fact that both these countries are the two big Asian giants, it is imperative for both of them to be allies so as to support each other and continue their bid for the strongest power.
Steps to boost bilateral relations among two nations
- Establishment of bilateral group with experts from both countries who would workout a plan for further cooperation.
- Capacity building in combating terrorism of intelligence, police, military and para-military forces through training.
- Promotion of greater coordination to resolve boundary disputes among two nations.
- Correction of bilateral trade balance to ensure mutual economic development.
- Legal and moral support to each other at all international platforms.
- Increase people to people contacts through tourism and cultural exchange.
Without Chinese cooperation and change in attitude it is tough to realise progress on bilateral relations. India should push China for better relations and should try to establish trust among among two nations.
(c).
Global South refers to technically and socially less developed countries which are located in Southern Hemisphere, primarily in Africa, Asia, and Latin America. Brandt Report proposed a division between North and South countries based on various parameters such as technological advancement, GDP etc.
- At the Sixth Special Session of the United Nations General Assembly in 1975, a declaration was made for the establishment of a New International Economic Order (NIEO). It is regarded as “a turning-point in the evolution of the international community.”
- NIEO is based on “equity, sovereign equality, common interest and co-operation among all States, irrespective of their social and economic systems, which shall correct inequalities and redress existing injustices, make it possible to eliminate the widening gap between the developed and the developing countries and ensure steadily accelerating economic and social development and peace and justice for present and future generations.”
India as the voice of Global South
- India, with its history of a leading role in the Non-Aligned Movement and G77 through the Cold War, has taken a considerable lead in assuming a leadership role and representing the collective interests of the Global South countries. This was demonstrated during India’s presidency of the G20 in 2023.
- Following the assumption of the G20 presidency on December 1, 2022, India convened a landmark virtual Global South Summit, themed “Unity of Voice, Unity of Purpose”, in January 2023. With leaders and ministers from 125 countries of the Global South in attendance, Prime Minister Narendra Modi stressed the need for collective action to reshape the emerging global order. He highlighted that the Global South holds “the largest stakes in the future” as three-fourths of the world population “lives in our countries”.
- However, alongside India, China too has staked claims to lead the Global South consensus on major international issues. The two countries have consistently advocated for a renegotiation of the global economic and political order. Nevertheless, Beijing has attracted criticism for pursuing predatory economic policies, especially under its Belt and Road Initiative (BRI), adding to the economic distress of dozens of countries across the Global South.
- India, on the other hand, has accrued significant diplomatic capital to buttress its claims of leadership for the Global South through its persistent calls for collective action and development. For instance, during the G20 Summit in Delhi in September 2023, India succeeded in its efforts to induct the African Union as a permanent member of the major economic bloc. The expansion, the first since the formation of G20 in 1999, allows the African countries to voice their economic concerns directly to the world’s most influential countries.
- Secondly, during the COVID-19 pandemic, India distributed around 163 million doses across 96 countries under the ‘Vaccine Maitri’ humanitarian drive between January 2021 and February 2022. This symbolises India’s commitment to go beyond rhetoric to take tangible actions for the collective welfare of the Global South.
The recent resurgence of the Global South hence reflects the evolving geopolitical landscape and the growing influence of developing nations in global affairs. India’s leadership exemplifies this transition through its championing of the interests of the Global South and advocating for a recalibration of the global economic and political order.