Due to the globalisation and liberalisation of global economies coupled with the rapid advancement in science and communication technologies, there has been an intensification of their socio-economic, political and cultural ties with their countries of origin. Diasporas have attained due importance at the international level as well as in the domestic political and economic affairs of home countries in the present scenario. They have started acting as an ‘inevitable link’ between their home and host lands resulting in major political and economic implications for both.

Diaspora as a Tool of Diplomacy in India’s Foreign Policy

The use of diaspora as a tool of diplomacy in Indian Foreign Policy is a relatively new phenomenon. The Indian diaspora is a major component of these concomitant worldwide and has increasingly become more influential over India’s foreign policy, becoming a highly strategic asset for India in the recent decades. India has been making concerted efforts to engage and leverage upon its diaspora estimated to be about 25 million, the second largest in the world, ranging from a mere 20 in Albania to over 2.2 million in the United States, dispersed in 136 countries.

The efforts of PM Modi regarding Diaspora Diplomacy and in cultivating the relationship with Indian diaspora signifies the importance of soft power in the foreign policy initiatives of the present government. To be fair, diaspora cultivation is not exactly a new phenomenon in IFP; the former governments had also invested a good amount of capital in resolving the underlying obstacles in the implementation of effective interaction between Non-Resident Indians (NRIs) with the Indian government.  

The union government in the year 2000 established a high-level committee on Indian diaspora to review the status of People of Indian Origin (PIOs) and Non-Resident Indians (NRIs) looking at the laws and rules that are applicable to them. This was an initiative to look at the role NRIs and PIOs may play in the social, economic and technological development of India.  Better rules favouring the PIOs like the ease of travel and stay were implemented and new categories created amongst its diaspora in 2006 for the NRIs, PIOs and Overseas Citizen of India (OCIs). The Indian parliament in August 2005, passed the amendment of Citizenship Act of 1955, allowing certain sections of the diaspora to gain specific citizenship rights. Eventually, there is a growth in outreach activities for the Indian diaspora like conferences and seminars, Pravasi Bharatiya Divas (Day of Indians Abroad) amongst other initiatives which show a concerted effort by the Government of India to showcase India as a place that is welcoming of its diaspora.

Diasporas: Effective Instrument in India’s Foreign Policy

The importance of diasporas does not end with remittances alone. It extends to knowledge transfer, the sharing of resources, diasporas acting as unofficial Indian ambassadors and pushing for India’s interests abroad. The diaspora has also helped in improving India’s image globally and they undoubtedly have considerable stakes in India’s development.

Diaspora is the oxygen to PM Modi’s foreign policy. Since day one, he has addressed concerns related to the Indian diaspora and makes it a point to address a gathering of Indian diaspora at any foreign visit. The task of such an interaction is to convince the diaspora that they can engage as effective stakeholders in the problems faced by India and that their contribution is imperative for India’s economic development and its rise as a global power. This also acts as a subtle but powerful message to the governments of the host countries. This “Diaspora Diplomacy” is a classic example of how the diaspora can act as an effective instrument of diplomacy in international affairs in the era of globalisation. The diaspora can greatly contribute to domestic economic development and attract FDI to India. Modi’s idea of diaspora diplomacy is to ensure a collective Indian voice in the host countries where they are simultaneously loyal citizens. While the diaspora certainly do not determine policy, they can effectively shape it and act as “bridge-builders” between their home and host countries.

While looking at the effect of diaspora Diplomacy in Indian Foreign Policy, some examples can be cited as diaspora plays a decisive role in the improvement of India’s foreign relations. Historically, India has benefitted from its diaspora. Two instances stand out: lobbying for the US-India Civilian Nuclear Agreement Bill in 2008 and their remittance inflow. The Indo-American community had a significant role to play in improving the image of Indians in the American minds as well as the Indo-US rapprochement. The lobbying efforts of the US India Political Action Committee (USINPAC) helped to get the Indo-US Nuclear Deal passed by the US Congress. While Bollywood films since Independence have enjoyed great popularity in the Middle East, the development of geo-economics has made the Indian diaspora as an important instrument, interest and indicator of India’s soft power in the region. The Indian expats working in the region contribute significantly to the remittances India receives. PM Modi has capitalised on the need for Middle Eastern countries to look for large markets because of the Shale Revolution and US Retrenchment, increasing India’s engagement with the region. The most important tool for PM Modi’s Middle East adventures has been the Indian diaspora.

However, certain political developments taking place within India do sometimes negatively impact the diaspora, for example, the negative impact of the diaspora is that there are also groups and individuals within the diaspora who continue to support various insurgent groups operating within India, while lending them both moral and material support through hawala operations, money laundering etc. and this can prove to be a colossal security threat for the nation.

Nevertheless, India has a pivotal role to play in world affairs as it is a rising power and a key stakeholder in the security dynamics of South Asia and Southeast Asia. Its role in East Asia is taking shape and while India is still not an economic power, its military capabilities, shared interests and willingness to explore beyond its rhetoric have raised expectations banking on its capabilities and the role India can play as an Asian power, in the region and globally. The large populations of Indian expatriates in countries like Thailand, Singapore and Malaysia provide India with an opportunity to develop nurturing and more cooperative relations in the region. In the past, diaspora policies have been inconsistent and often poorly implemented, to say in the least. Over the years, however, the diaspora populations have become an increasingly important factor in international relations and politics. The Indian diaspora have a direct engagement and influence on the economies and polities of both the origin country and the host country. This provides for a ripe environment for India to tap on the potential they offer.

Conclusion

However, the present foreign-policy strategy of a strong outreach to the Indian diaspora stands out and must be nurtured. The diaspora can provide the requisite strategic impulse and strengthen strategic relations.  In the present times, the global reach of media and revolutionary changes in communication has helped create diaspora networks and instant connectivity with the motherland. It is important to constantly engage the diaspora and develop policies as the destinies of India and the diaspora are intertwined. Therefore, it serves the interest of both to develop a mutually beneficial relationship and is an important tool for India’s soft power diplomacy which would help India in achieving its aspirations to be a developed country and a knowledge superpower in the international arena.

References

Chaudhury, D. R., & Duttagupta, I. (2020). India steps up Gulf diplomacy for its diaspora. The Economic Times.

Haider, S. (2020). The ambit and the limits of ‘diaspora diplomacy’. The Hindu.

Ok, Y. E. (2018). “DIASPORA DIPLOMACY” AS A FOREIGN POLICY STRATEGY. IFAIR.

Rana, K. S. (2009). India’s Diaspora Diplomacy. The Hague Journal of Diplomacy.

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Current Situation

Over time, the process was expected to create a robust global economic powered by the mutual economic and social cooperation. However, this expectation soon became a distant concept as the world’s economy struggled to overcome disturbances caused by a number of political and economic setbacks that permanently disturbed the socio-economic fabric of society. Most recent of these events being the novel Coronavirus. The crises we face today is unlike any other we have experienced earlier, forcing us to question the existing international systems, and with that the concept of globalisation. On the other hand, there are those that have come to coin the present situation as, ‘Globalisation’, signalling a return to globalised world post the pandemic. There exists no doubt about the fact that the Globalisation has connected not only industries and business, but it has done away with social, economic and political borders, that has allowed for the free flow of intellect, capital and resources. While this has acted to the benefit of many nations, a number of people have been extremely vocal about the fact that the process has enhanced the vulnerabilities of nations by making them over-dependent on the global supply chain. Loopholes and drawback of this nature have been further highlighted by the COVID 19 pandemic, as underdeveloped and developing nations have been left struggling to meet the demand of essential items such as masks, sanitisers and medicines. In the past few months itself, we have recorded a 13-32% decline in merchandise trade, a 30-40% reduction in FDI and 44-80% reduction in International air travel. 

Future of Globalisation

Seeing the present situation, that has resulted in a major role back on the gains made by globalisation in the previous two decades and a fundamental collapse of the international market integration, many have come to envision the world in the post-pandemic days. The most obvious answer to these questions seems to be that, leader shave to plan for and shape a world where both globalisation and anti-globalisation pressures remain enduring features of the business environment. 

It is too early to say, if whether the world is done and dusted with the concept of Globalisation. However, recent statistics and forecasts, predict that the concept should be in currency following the end of the pandemic. However, the nature of the same might be different from what we have experienced previously. The pandemic that had a universal impact, left all national economies in shackles, then whether it be the United States or some of the richest European nations. The economic recovery has been the top priority for all countries. However, such robust economic growth can only be pursued once the pandemic has been brought under control. Viewing the economic trends prior to the pandemic, it is clear that globalisation is an important agent in the growth and health of nations. Countries higher up in the DHL Global Connectedness Index tend to record faster economic growth. There is well-founded evidence to the fact that well-connected countries have a more advanced medical system, making them less susceptible to infectious diseases and put them in a better place to deal with the same. This goes to show that the negatives of globalisation, can just as easily be turned into positive contributions, by investing in health, growth and international cooperation. 

Global Growth

The COVID 19 pandemic has added fuel to the fire, by further destabilising an already fractured world. The pandemic introduced new levels of complexity, an example of which is the national restrictions and differing government response policies, which have further highlighted the differing ideological grounds. However, it is but natural to assume from here on forth that the global socio-economic environment will be driven more by factors based on regional competition, domestic self-sufficiency and when it comes to transnational companies and organisations, the country of their origin will decide the nature of policies they will adopt. Even as the lockdown restrictions have begun to ease we have seen that short distance and domestic trade have recorded a stronger comeback than international trade, hence the importance of regions should not be underplayed and the possibility of stronger domestic and regional trade flows should not be completely forgone while envisaging a new world order.

Technological Advancements

As the pandemic disrupted the status quo, forcing us to adapt to and adopt new ways, it invariably led to the creation of new technology and adoption of e-commerce, videoconferencing and robotics. Before we were faced with the challenge of dealing with a world pandemic, it was a commonly held belief that strides in technological development may not lead to an increase in global flows. However, recent times are a complete antithesis to that belief, as the cross border, e-commerce has come to expand export opportunities for smaller companies, and forced experimentation with remote work could spur more service offshoring. In planning ahead, for the post-COVID 19 scenario, business leaders have to think creatively by taking a structured approach to consider both internal and external implication. For most companies, technological trends should lead to more globalisation in some areas and less in others, rather than a uniform shift in one direction or the other.

Public Perception

Public Opinion towards globalisation has taken a hit, calling back the strong support trends as international trade and immigration had received in the last two decades in particular. The fact that international travel has led to the spread of the virus and the increasing economic stress has resulted in trade protectionism, politicians have used this in their favour to consolidate support against globalisation and the evils that it has introduced into our polities. In these uncertain times, citizens and more important customers and employees have turned to corporate leaders to make a statement regarding globalisation. The rise of anti-globalisation and anti-capitalist movements, as the virus spreads globally has further complicated the role of businesses in the public debate about globalisation. The need of hour requires us to focus on the real economic contributions and how they can help support a healthier form of globalisation. 

Conclusion

A tremendous challenge lies ahead of us, to transform the current world order by regulating and weakening the burdens of globalisation. As the days have passed it has become clearer to us that we have to create a mechanism to respond to diseases through effective international cooperation, without retreating back to the evil of ethnocentrism. Covid-19 effect on the globalisation can be seen more as a bend, rather than a permanent break. Attention to the drivers of globalisation, can lead and navigate companies through and even profit from the turbulence. It is now that the value of globalisation in the form of international cooperation can be portrayed to ensure a suitable and stable future.

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China is a one-party state with power lying mainly in the hands of the Chinese Communist Party. Moreover, it is one of the five permanent members of the UN’s Security Council and thus possesses tremendous power and reach.

History of China’s Economy

The trade reforms introduced in 1978 have changed the economic position of the country on a gigantic level. 

After the reforms were introduced, the country began to open and its economy has seen tremendous growth. GDP growth averaged over 10% per year, making it one of the world’s fastest-growing-economies.

Recently, however, due to several imbalances, comparatively low growth rate of institutional development and fast pacing economic development, there have been several reform gaps that have kept the GDP growth rate at 6% per year and it has been decreasing continuously. The country has made Innovation its top priority while working on the strategy for the 2020-25 growth model catering to the current scenario.

China’s Strategic Advantage

China is an upper-middle-income country and a major supplier of raw materials to the rest of the world. It observes major investment from MNCs globally. Most of the products that we use in our daily life are labeled as either made in China or assembled in China.

Apple iPhone, which is considered a revolutionary product, gets its product assembling done in China. Low labour costs were considered the main reason initially but there has been a shift in recent years. Since countries like India, Vietnam, etc. can provide even cheaper labour, hence the question arises, what makes China different?

The answer is the quality of labour and the type of skill provided. As said by Tim Cook “You find in China the intersection of craftsman kind of skill, and sophisticated robotics and the computer science world. That intersection, which is very rare to find anywhere, is very important to our business.”

Thus, comparatively low labour costs, highly skilled labour, the ability to produce big consignment daily due to the strong labour force and a large home market make China an ideal country for product assembly. 

Trade Relations with India

Economic relations between India and China date back to ancient times with the Silk Route being the major trade route then. China is a major exporter of raw materials like pharmaceutical ingredients, steel, electronic devices, fertilizers for India, thus making India as China’s biggest trading partner after the US. India too runs a huge trade deficit with China.

The major inability of Indian companies to produce products at low rates arises because of a lack of research and development facilities, poor infrastructure and incompetent labour policies.

In a survey of about 90 people, it was asked: “What is the main reason that encourages you to buy foreign goods?”

The following were the observations:

Due to this Chinese goods gain an edge and find a huge market in India. Moreover, the Indian population forms a large base for many Chinese apps. These do not mainly contribute to revenue but they help in boosting the reach of the product which is even more beneficial for the companies.

However, with the recent clashes and increasing deficits, the Indian government has banned several Chinese applications and has been constantly focusing on promoting the ‘Made in India’ campaign.

Impact of the Current Situation

With the advent of the current pandemic, almost all economies have come to a standstill. While some of the countries have been able to deal with the situation efficiently and have already observed the peaks, others like the US and India are the worst struck and their economies have faced a major shock. 

China has been accused of hiding information about the virus which eventually led to the pandemic. Markets crashed and the price of crude barrels fell to such an extent that they became negative for the first time in history. Many people have been laid off from their jobs, causing them to fall into debt traps.

However, the current border tensions with China have induced an even greater hatred among Indian citizens towards Chinese goods and services. Many Chinese contracts and tenders have been reworked and the suppliers have been changed. These have vastly affected China’s economy.

Nevertheless, the economic interdependence of the two nations is way too important to be ignored. An all-out boycotting of Chinese goods would force people to buy expensive goods in this period of recession. This would just worsen the situation and the governments would have to further moderate the policies to accommodate the situation.

Conclusion

 It can be rightly said that the expansionist and influential regime of the Chinese government is at an all-time high. China might be taking this course of action to drive the attention of the world away from COVID allegations by having disputes with other nations. However, with this course of action, it is losing a huge consumer base in India. Though low priced quality goods might still prevail in the markets as Indians don’t have good homemade alternatives.

India and China have been embroiled in border disputes since 1962 after the Indo-China talks failed. China has always been intruding in the territorial sovereignty of India, this has been very common but the international community never held China liable because of its veto in UN and structural hegemony in international markets but the advent of COVID-19 has led to an international bias against China. The factual matrix has created a situation in which China might be held liable for the very first time for violating the ceasefire agreement on LAC as it has lost support in the international arena and the CCP is facing extreme criticisms for its violations and misuse of authority.

The first step towards the long turn process of improving the efficiency of production in India should be taken immediately. Trade shouldn’t be stopped but the trade deficit needs to be brought to a balance to prevent other nations from exerting dominance in the future.

China needs to take into account the possible isolation by other countries in the long run which might bring down the already decreasing GDP growth and the scenario before 1978 might come into the picture again. China should acknowledge the need of the hour and help its subordinate countries with the current pandemic, help in building their economies to ensure healthy trade relations, the welfare of mankind and stability. History is evident, Wars cease to create any good, rather are a great way to destroy the global economy, loss of life and property and leave the world in a state of regret and despair. 

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Some major updates to cover in today’s Indian Foreign Policy Report are as follow:

India’s Mission Sagar in the Indian Ocean Region

With that spirit in mind, India has recently launched, ‘Mission Sagar’ on the 10th of May. The mission is India’s way of assisting nations in the Indian Ocean Region, in their fight against COVID-19. In this mission, assistance was provided by the INS Kesari, that sailed to the Maldives, Mauritius, Madagascar, Comoros, and Seychelles, to deliver material assistance and in particular, medical assistance to Mauritius and Comoros. The successful completion of the mission can be seen as a major milestone, in terms of India’s new foreign policy of increased engagement in the Indo-Pacific and the Western Sectors of the Indian Ocean. The mission is also in line with the Prime Minister’s policy of SAGAR (Security and Growth for all in the Region). Mission Sagar is one particular example of increased Indian activities in the spheres of maritime security, cooperation, and navigation security, as the country transitions from a passive maritime actor to an exceptionally active one, with an equally important say in the Indo-Pacific, one of the most coveted and disputed regions in the world.

Bi-annual Exchange of Prisoner List Between India and Pakistan

As India has constantly tried to increase its presence on the international stage, it has found itself at an impasse with its neighbours on a multitude of issues. However, amidst this highly taut and tense environment, India and Pakistan recently exchanged a list of prisoners on the 1st of July. The exchange of lists is in accordance with the 2008 agreement, where the nations exchange a list of prisoners bi-annually, which is on the 1st of January and the 1st of July. The Indian lists contain 265 Pakistani civilians and 97 fishermen. On the other hand, the list issued by Pakistan contains 54 Indian civilians and 270 fishermen. Furthermore, to expedite the process, the Indian government has provided the nationality verification details of 7 civilians and 106 fishermen. Lastly, to show India’s commitment to the bilateral process, the central government has asked the Pakistan authorities to confirm the nationality status of 88 Pakistani prisoners in Indian custody.

India-China Dialogue Between Special Representatives

As mentioned earlier, India finds itself in an extremely precarious position when it comes to both its neighbours. However, the statement is especially true regarding its relationship with China over the Actual Line of Control. The escalation in violence in the Galwan Valley and the loss of life of Indian and Chinese soldiers was the first since 1975. This extremely volatile situation has both the governments scratching their heads as to what needs to be done next to diffuse the simmering atmosphere. China has chosen to strike a blow against India when it is busy dealing with the surge in casualties as a result of the COVID pandemic. However, in the last few months, India has chosen to follow a hardline stance against the Chinese. This has visibly resulted in increased violence on the border regions and has led to a campaign within the Indian polity advocating the ban of all Chinese products and applications.

However, recently there was a dialogue between the special representatives of the two countries. During the conversation, Ajit Doval, India’s National Security Advisor and H.E Wang Yi, State Councillor and Minister of Foreign Affairs for China, had an in-depth exchange of views on the border issue. During the discussion, several important points were highlighted, the first among them being that peace and tranquillity were essential for the further development of bilateral relations. Hence, it was agreed upon to disengage and pull back all troops from the Line of Actual Control and complete de-escalation on the India-China border. Secondly, both sides agreed to respect the Line of Actual Control and vowed to not take any unilateral action in the region.

India-Russia Bilateral Relations

In a further effort to strengthen bilateral relations, the Indian Prime Minister had a telephonic conversation with the President of the Russian Federation, wherein they discussed several strategic topics of interest to both nations. Mr Modi also used this opportunity to congratulate the President on the successful completion of the parade, marking the 75th anniversary of the end of the Second World War. More importantly, Mr Modi felicitated President Putin on the recent constitutional vote, through which President Putin has consolidated his power till 2036. The Prime minster further recalled the participation of an Indian contingent in the parade in Moscow, as a sign of friendship. Lastly, the Indian Government expressed their enthusiasm for hosting President Putin, later in the year during the bilateral summit.

India’s Participation at the ‘Strengthening Consensus for Peace’ in Afghanistan

Afghanistan over the last many decades has been turned into a complete war zone, with the presence of uninvited international actors. However, in the last two years, there have been constructive steps taken by both the Afghan government and the United States of America to bring the Taliban to the negotiation table in an effort to end the violence and bring lasting peace to the region. Lately, the Islamic Republic hosted a regional meeting, by the name of, ‘ Strengthening Consensus for Peace’. The meeting was chaired by the Afghan President, H.E Dr Mohammad Ashraf Ghani. The conference recorded participation by 20 countries and international organizations. During the conference, India expressed support for establishing a constitutional order in Afghanistan and unequivocally stated the importance of putting an end to terrorist sanctuaries and safe havens for destructive forces in Afghanistan.

Indian Nomination to the United Nations Security Council

Lastly, India recently secured its position as a non-permanent member of the United Nations Security Council, with a vote of 184 out of 192. However, to fill in the seat of the Ambassador/Permanent Representative to the United Nations and other international organizations in Geneva, Shri Mani Pandey, who currently serves as the Additional Secretary in the Ministry of External Affairs has been appointed.

Conclusion

Looking at India’s foreign policy from a macro perspective, we come to see that India has consistently tried to create an environment of inclusiveness then whether it be in the Indo-Pacific or the Western sectors of the Indian Ocean Region. India’s willingness to corporate and emerge as a regional power is a visible thought of its efforts in Afghanistan and its strategic partnerships with countries like the Russian Federation and France. In the last two decades, China has developed by leaps and bounds and has emerged not as a regional power but as a global hegemon. This has overshadowed nations like India, owing to China’s aggressive policies. Hence, while India tries to extend its reach globally, it has locked horns with China recently in the Galwan Valley region. The Indian and the Chinese sides seem to be ideologically clashing with each other over the Indo-Pacific, one of the most disputed regions of the world. It is India’s capabilities to fight off both the COVID 19 and the Chinese aggression, that will define the India that emerges in the near future.

Also Read: INDIA’S FOREIGN POLICY REPORT – EDITION #2

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