May
In my last post, I discussed about the China US relationship and how it will/may undergo a change in the coming decade. In this relationship, India I believe is a prime stakeholder as well. I say this statement because the role India takes on the global stage will determine how and where will this relationship shape up. In this context, a few perspectives need to be considered – I underline 3 of those below -
1. India as an alternative to China - First question is, whether this is possible? If yes, on what scale and sectors? Currently, the China-US relations are so tightly intertwined, this will take some doing. However there are indications that steps towards this have already been taken post the re-election. Here’s an excerpt from a DNA report about it
“Our task is be to strengthen the partnership that exists between US and India, to base that on our converging values and interests,” said assistant secretary of state for South Asia Robert Blake. “The nuclear deal is going well…but there are still a couple of steps that India has to take to implement the agreement.”
The US is thrilled that Singh may not have to rely this time round on scrappy support from Communist parties. They quit the government in opposition to India’s deal with the US on N-deal– the signature achievement of Singh’s five years in office.
2. Expertise building within - I believe India needs to develop expertise in sectors other than IT or outsourcing. Probably that would be the single most important factor that may shape India’s fortunes in the coming future. It has to be done quickly and it won’t be easy as well, since organisations like WTO are already pressuring India to take steps against protectionism as indicated here
The World Trade Organization (WTO) chief urged the United States and India to start talks as soon as possible to tackle protectionism and called on Gulf Arabs to open up to international business. “The U.S. and India are at odds with protectionism in agriculture. Now the elections of both countries are over, we expect them to start engaging in talks,” Pascal Lamy told reporters.
3. Taking a stand on issues - In the past, India has been avoiding taking stands on critical issues. If India wants to get counted on a global level, India would have to take stands on critical issues – such as Global warming, nuclear proliferation, even on countries like North Korea conducting Nuclear tests. India as a country, has not reacted in a way a major power should have reacted to a mini-invasion like 26/11 . This has to change from an Indian perspective, and fast.
An economic times report gives views of US special envoy for Pakistan and Afghanistan Mr. Richard Holbroke
“We can’t settle issues like Afghanistan and many other issues without India’s full involvement,” Holbrooke had said. “India is a vital leader in the region,” added Adm. Mike Mullen, chairman of the US Joint Chiefs of Staff, who accompanied Holbrooke.
Clearly, India’s importance and relevance in the world context is growing by the day. But, for India to capitalize on it, the government and corporates need to become proactive. For decades, ‘In-action is the best action’ has been a mantra for India. Would that work in the future? Write your comments about the same below.
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Related posts:
- China flexing its muscles around India?
- China US relationship (1/2)
- South Block (MEA) holding India back?
- US- China Trade Relations: Lessons from History
- India, which way to go?
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6 Responses to “China US Relationship (2/2) – How should India react?”
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I think the nuclear deal was a turning point in this regard. But the cooperation that started there, should continue, even increase.
Another factor can be India as an alternative to Pakistan as a military base for US. Will India agree to it? Not sure.
India due to its sheer size is a huge market for foreign goods. To keep this market alive there would be investment in various sectors like power,automobiles for instant. This investment would establish a base for India from which local industry can learn a few things and grow independently. On the whole India has got a bright future.
I absolutely agree with shyam , India is a huge market for foreign goods . Now we are done with elections and as told by shyam ,India should should be more active on sectors like automobiles, power other than IT and outsourcing .
@vijay @travelfreak @maximus and @Shyam Thanks for the inputs firstly!
The problem Vijay is the dilemma with regard to timing of investment. Currently, with the world is going through a recessionary phase, industries requiring heavy investments may not be the best place to park your limited reserves. However, those sectors need to develop and fast – that aspect also needs to be kept in mind.
I agree with Siddhesh but one good aspect about India is that it is more independent (than other developing countries which are mainly export oriented) of the world economy and also there is enough internal demand in India to with stand this recession and buoy Indian industry.With new and stable govt at the center let us hope there are proactive steps taken to keep the economy growing.