• The Parliamentary Committee on External Affairs (2022-23) has observed that despite an increase in the overall Union budget allocation, the allocation made to the Ministry of External Affairs in percentage terms has been decreased to 0.44% in 2022-23.
• India ranks 180 out of 180 in the Environmental Performance Index 2022, 126 out of 136 in the World Happiness Index 2023 and 132 in the Human development index 2022.
• With so low ranking in each sphere of the development, India cannot become an example for other countries to follow.
• India is an import dependent country for majority of its sector such as energy, semiconductors, pharmaceuticals, electricals, and solar PV cells among others.
• With so many sectors depending upon import, India cannot become self- reliant and hence an economic power.

Shall India strive to become a world power?

• India shall aspire to be a great power and assert its growing power internationally as a nation with World’s largest population and an emerging market.
• However, India shall also focus on the upliftment of millions of its people above the poverty line, improve governance and reconciliation within the country before venturing to make a better world.
• Both hyper-nationalist and pessimistic narratives on this issue must be proactively and critically engaged before devising any strategy.
• Because the kind of power India would become will not only define the future of the world but will also shape the destiny of its citizens.

Rise of India:

India in 1991:

Economic condition:

• India was a country in a very difficult situation, with a foreign exchange reserve of $5.8 billion and a nominal gross domestic product (GDP) of $270.11 billion.
• Nominal gross domestic product (GDP) is GDP given in current prices, by taking into account factors such as inflation, price changes, interest rates, and money supply.
• Almost 50% of its population was poor.

Defense and Security concerns:

• There were fears of a nuclear war between India-Pakistan, and violence in Kashmir was at its peak.
• Collapse of the Soviet Union who was India’s trusted partner, and strained relations with the United States further weighed on the Government.
• American officials used to keep close watch on India’s nuclear plans.

India in 2023:

Economic condition:

• India’s foreign exchange reserve has grown to around $600 billion.
• India’s nominal GDP is about to touch $4 trillion.
• The reforms initiated after the 1991 economic crisis has not only led to higher GDP growth but also led to significant poverty reduction.

Defense and Security concerns:

• War with Pakistan is not much of a concerned, but China has taken its place.
• India has one of the largest militaries in the world with over a hundred nuclear weapons.

Geopolitical arena:

• The U.S. is now one of India’s closest allies.
• India enjoys strong relationships with several powerful states around the world.
• India is also one of the pivotal swing powers of the contemporary international system, strategically located, and often playing neutral sides with great enthusiasm.
• The great power politics around the Ukraine war has brought renewed focus on India’s role in the world politics.
• The U.S. and the West wants India to be on their side.
• Russian Federation is doing everything to ensure India does not turn its back on them.
• India is in a position where it can help mediate between Russia and Ukraine.
• India uses the language of mediation in global crises.
• India can act as a bridge between the northern and southern, eastern and western countries due to its neutral position, indicating that India is a major ‘pole’ in world politics.  

What is holding India back from becoming a great power?

Weak domestic economy:

• The presence of a weak economy tempers the India’s appetite for external engagement.
• India can only allocate limited attention to foreign and security policies if the country is economically weak and large sections of the population are living in poverty.
• Weak domestic economy prevents government from allocating adequate resources for foreign policy objectives.

Poverty:

• India despite being the fifth largest economy in the world, its GDP per capita in 2021 was less than Bangladesh, even though Bangladesh is the 40th largest military in the world.
• GDP and military strength do not equal the well-being of India.
• If India focuses reduce poverty and improve the well-being of millions of Indians living under the poverty line, it has the potential to divert its attention to serious external engagements.

Infrastructural concerns:

• India is also beset with a major infrastructural and governance issues.
• Ease of doing business may have been improved, but starting a business in India without a bribe is still not easy.
• India’s domestic challenges will continue to distract the attention of its political leaders from attending to global problems.

Even though India’s domestic inabilities will continue to moderate its ability to influence the world order befitting of its size and ambition, being unwilling to engage and shape it, would be a strategic blunder. If you are not a rule shaper, you are a rule taker. India has no choice but to influence and shape the global order to meet its foreign policy objectives which would have significant impact on its economic growth, security environment and geopolitical and geo economic interests. India’s impact on the world order is a given, and, in a globalized world, the relationship between a state’s global influence and domestic growth is an unavoidable one. India’s ability to shape international politics must also be a reflection of its domestic context, and its global engagement must necessarily be geared towards the well-being of its people. Neither is strategic isolation from the world an option nor is India’s assertiveness on the global stage a matter of nationalistic pride.