In a swiftly-globalising world and driven by its own concerns, India is busy seeking its place in the sun where economic diplomacy is concerned. Acutely aware that economic diplomacy can be effectively used as a political instrument, New Delhi is focusing on this on the world stage in the hope that it will bring the country benefits.
Often described as “economic statecraft” in the corridors of South Block, which houses some of the external affairs ministry’s mandarins, New Delhi is trying various ways to forge ahead with this diplomatic tool.
What has added muscle to India’s economic diplomacy is the growing eagerness among countries across the world to do business in India in their search for more markets.
Of course, as an official points out, “diplomats are not economists, nor are diplomats businessmen. But they need to understand the dynamics of macro-economics, the dynamics of world economy...” Yet, with nearly 60 per cent of the work in most diplomatic missions being economic in content, there is no escaping the demands of a swiftly changing world order. “Economic diplomacy becomes an instrument of political diplomacy,” remarked an official. And it’s something that appears almost all encompassing, ranging as it does from trade and commerce to energy, food and fertiliser security. In food security, it’s Africa that India is increasingly looking at.
In its thrust on economic diplomacy, India is pursuing its goal of energy security where it’s looking at the relatively newer regions of Africa, Latin America and Canada to meet its requirements.
Fertiliser security and natural resource security too are “areas of over-riding interest and it’s something on which we are pushing very hard,” said sources.
Conversely, India is also looking to use exports as a tool of economic diplomacy.
For instance, wheat, of which it has a surplus, and even milk powder.
As far as world groupings go, India sees Asean as an important forum. Citing the success of the European Union (EU), sources said, the Asean is trying to emulate its success.