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12. India — Expert Comment: Kashmir attack stokes tensions along the India-Pakistan Line of Control
- Author:
- Pearl Pandya
- Publication Date:
- 04-2025
- Content Type:
- Commentary and Analysis
- Institution:
- Armed Conflict Location & Event Data Project (ACLED)
- Abstract:
- On 22 April, separatist militants fired at tourists in the resort town of Pahalgam in the Kashmir Valley, killing at least 26, including one foreign national. This was the deadliest attack on civilians in nearly two decades, and a rare attack against tourists, who have thus far been largely spared from separatist violence.1 Local reports attributed the attack to The Resistance Front (TRF), believed to be an offshoot of the Pakistan-based Lashkar-e-Taiba, an Islamist separatist group.2 While the group has focused its activities against Indian security forces, ACLED data show the TRF’s involvement in at least 21 attacks targeting civilians in Kashmir since the group’s founding in 2019. Similar to Tuesday’s attack, non-Kashmiris and Hindus have borne the brunt of the TRF’s violence.
- Topic:
- Territorial Disputes, Violence, Separatism, and Armed Conflict
- Political Geography:
- Pakistan, South Asia, India, and Kashmir
13. Dismantling the License Raj: The Long Road to India’s 1991 Trade Reforms
- Author:
- Douglas A. Irwin
- Publication Date:
- 01-2025
- Content Type:
- Working Paper
- Institution:
- Peterson Institute for International Economics (PIIE)
- Abstract:
- In July 1991, India began to dismantle its long-standing, highly restrictive import control regime and move toward a more open economy. How were policymakers able to dislodge and replace an entrenched system with powerful vested interests behind it? Standard explanations for policy change—pressure from domestic producer interests, shifts in political power, or conditionality by international financial institutions—do not explain the dramatic transformation that took place. Instead, reform-minded technocrats persuaded political leaders to reject what had been a standard response to balance of payments pressure (import repression to avoid a devaluation) and embrace a new approach (exchange rate adjustment and a reduction of import restrictions). This paper explores the economic and political context behind the country’s dramatic policy transformation. India’s experience highlights the crucial link between exchange rate policy and trade policy
- Topic:
- Foreign Exchange, Reform, Tariffs, Trade, Imports, and Exchange Rates
- Political Geography:
- South Asia and India
14. India and the World Economy: Policy Options at a Time of Geopolitical Drama, Technological Shifts, and Rising Protectionism
- Author:
- Fredrik Erixon, Dyuti Pandya, and Vanika Sharma
- Publication Date:
- 03-2025
- Content Type:
- Policy Brief
- Institution:
- European Centre for International Political Economy (ECIPE)
- Abstract:
- What trade policy should India pursue? Geopolitical drama and a faltering multilateral system have made choices of trade policy harder for many countries. Rising protectionism, economic nationalism, and growing scepticism towards globalisation eat into most trade relations. Technology-driven innovation and rapid changes in the composition of trade have added additional layers of complexity, forcing governments to develop new policies for cross-border economic integration. This is the inflection point for India’s trade policy: its traditional approach is increasingly unable to respond to new economic and political realities, and new approaches may be needed to deliver better economic outcomes. Using India’s external trade strategy as a starting point, this policy brief presents three strategic options for India, each reflecting varying degrees of trade openness as a means to drive economic development. Using categories from the world of soft drinks, we call them “Trade Zero”, Diet Trade” and “Trade Regular”. First, the Trade Zero approach allows India to maintain its defensive stance on trade, focusing primarily on the growth of its domestic market and demand. Trade only serves as a means to manage production surpluses. Second, the Diet Trade approach pushes India to softly enhance trade with its already well-established trading partners, ideally by focusing on high-value-added goods and services. The model emphasises deepening diplomatic relations through trade: however, not at the cost of domestic policy priorities. And lastly, the Trade Regular approach encourages the adoption of a more ambitious trade strategy with the aim of establishing India as a central hub connecting major global economic regions. This would happen through upgrading existing trade agreements, signing new multilateral trade agreements, as well as adopting significant domestic reforms for further economic liberalisation. India’s trade performance provides the actual context of the realities of India’s trade policy. There are some notable features in India’s trade performance: its trade sector is small (international trade as a share of the GDP); it has a large services export sector compared to the export of goods; exports of high-value added goods and services has increased substantially; there is a consistently large share of big economies such as the United States and the European Union in India’s exports. All these features point to India’s position in global trade as a relatively high-value added economy. India, therefore, not only has an opportunity to leverage its trade capacity to significantly improve economic growth but can also adapt to newer forms of trade and increasingly engage with the global economy. Moreover, given the shifting global context and the increasing trade reciprocity demands from larger economies, India will also need to strengthen its trade relations with a diverse set of partners. In a way, India’s economy has already made the choice of which model that suits it best. Given the key features of the country’s trade sector, India’s real economy is already moving towards a Trade Regular model. However, there is a gap between the actual performance and policy positions, which remain defensive. Future trade growth, however, will likely depend on India becoming more pro-active in its trade policy and better equipped to negotiate trade agreements that respond the ambitions of its outward-oriented companies.
- Topic:
- Science and Technology, Geopolitics, and Trade Policy
- Political Geography:
- South Asia and India
15. The impact on developing economies of WTO dissolution
- Author:
- Lloyd Barton
- Publication Date:
- 07-2025
- Content Type:
- Special Report
- Institution:
- Oxford Economics
- Abstract:
- This report revisits the analysis presented in our April 2024 paper on the potential impact of WTO dissolution, drilling down to quantify national-level impacts for a sample of ten developing economies. Our previous report (The economic impact of abandoning the WTO) focused on presenting aggregated results for developing countries by region and income level. This report drills down to quantify impacts for a sample of ten individual countries: Brazil, Cameroon, China, Egypt, Guatemala, Indonesia, India, South Africa, Turkey, and Vietnam. These countries provide a rich, varied sample that captures the complexity of trade policy in the developing world. Their diversity in geography, economic size, policy orientation, and development stage allows for a nuanced analysis of how WTO dissolution could potentially influence pathways to higher incomes, poverty reduction and economic resilience. Our analysis reinforces the importance of ensuring the WTO can adapt to new trade realities and continue to function as an effective global trade body.
- Topic:
- Economics, Poverty, Trade, Economic Development, and WTO
- Political Geography:
- China, Indonesia, Turkey, India, South Africa, Brazil, Vietnam, Egypt, Guatemala, and Cameroon
16. Friends and Foes in the Indo-Pacific: Multilateralism Out, Minilateralism In?
- Author:
- Axel Berkofsky and Guido Alberto Casanova
- Publication Date:
- 03-2025
- Content Type:
- Special Report
- Institution:
- Italian Institute for International Political Studies (ISPI)
- Abstract:
- Minilateralism is already among us, and it is here to stay. The well-known shortcomings of the multilateral system of governance are pushing individual states in the Indo-Pacific to come up with new and different solutions to deal with the security and prosperity issues that current institutions are unable to tackle. Amid growing geopolitical rivalries and the uncertainty provoked by the re-election of Donald Trump, this report aims to shed some clarity on an emerging trend that is already affecting the foreign policy of great powers in a region that is central to global affairs.
- Topic:
- Security, Alliance, Multilateralism, Institutions, and Cooperation
- Political Geography:
- Russia, Japan, India, Asia, North Korea, Philippines, United States of America, and Indo-Pacific
17. India-China rapprochement: what are the long-term prospects?
- Author:
- Nayanima Basu and Alicia Garcia-Herrero
- Publication Date:
- 05-2025
- Content Type:
- Working Paper
- Institution:
- Bruegel
- Abstract:
- China-India relations, which have long been fraught, were further complicated by the 2020 military standoff on the Himalayan border. The political disruption had a significant impact on Chinese companies’ presence in India. And yet, India’s dependence on Chinese imports has increased since. The Indian economy is decelerating at a challenging time for Prime Minister Modi, who governs in a coalition. China could offer a partial solution to India’s economic woes by providing manufacturing FDI and creating jobs. The Modi-Xi ‘rapprochement’ after their encounter at the October 2024 BRICS summit signals that relations could improve. India may be willing to accept targeted investment from China, but relations are unlikely to fully normalise, particularly since the 2025 India-Pakistan military stand-off. There are three main reasons for this. First, the Indian army remains cautious about the situation at the border and security risks relating to China. Second, the United States under President Trump will exert pressure on Modi not to depend further on China. This is even more relevant in the context of Trump’s threat to impose tariffs on India. Third, Indian public opinion on China and the Belt and Road Initiative remains negative. India is predicted to experience greater growth than China in the coming decades, meaning China could lose its upper hand in economic relations between the two countries. This, however, will depend on how dependent India might have become on China for imports or for jobs through FDI and other channels. The militarised border, India’s asymmetric economic dependence on China and China’s leadership in the Global South will still shape the relationship even if the Indian economy grows to a similar size to China’s. India-China ‘rapprochement’ is possible but will remain fragile and unlikely to be maintained in the long run.
- Topic:
- Bilateral Relations, Governance, Economy, Economic Growth, Investment, and Trade
- Political Geography:
- China, India, and Asia
18. The time is right to make a European Union-India trade deal happen
- Author:
- Ignacio Garcia Bercero and André Sapir
- Publication Date:
- 07-2025
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- Nearly 20 years have passed since the EU and India started negotiations on a bilateral trade and investment agreement. After seven years of intense negotiations, the process stalled in 2014, primarily because of the failure of the respective political leaders to make difficult choices. Talks restarted in 2022 and now offer a reasonable chance of delivering a bilateral free-trade agreement “within the course of the year”, as Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen declared in February 2025. The EU and India both rank among the world’s five largest economies in terms of GDP. Yet much separates the two economically. India’s GDP per capita is much lower than the EU’s, and its level of trade and investment protection is much higher than that of the EU or even its middle-income peers. However, India has recently enjoyed faster growth than any other large economy, including China. The EU and India are also being brought closer by the global geopolitical situation and their common pursuit of strategic autonomy and economic security. The two sides should learn the lessons from past failure and reach an ambitious agreement in areas that previously proved difficult, such as goods tariffs and services, and in new areas, such as climate protection, that could again derail the revived negotiation if not managed well. A deal by the end of 2025 will have economic benefits and will also reinforce the broader economic and political links between the EU and India at a time when world affairs are under severe strain. An ambitious agreement could also help reconstruct a rules-based global order for the new multipolar world. This is particularly important for the multilateral trade and climate regimes, where converging EU and Indian positions could have a major influence on the redesign of international institutions and rules.
- Topic:
- Treaties and Agreements, Bilateral Relations, Governance, European Union, and Trade
- Political Geography:
- Europe, South Asia, and India
19. Beijing’s Aggression Behind Emerging India-Philippines Defense Relationship
- Author:
- Peter Chalk
- Publication Date:
- 10-2024
- Content Type:
- Journal Article
- Journal:
- China Brief
- Institution:
- The Jamestown Foundation
- Abstract:
- The People’s Republic of China’s increasingly assertive stance on affirming its territorial claims in the Indo-Pacific is informing the evolution of a closer defense relationship between New Delhi and Manila. On September 25, the Philippine Coast Guard removed a floating barrier that China had installed at Huangyan Dao (黄岩岛, an island in the Scarborough Shoal) in the South China Sea (SCS) the previous day. Responding to questions about the incident, PRC Foreign Ministry spokesperson Wang Wenbin (王文斌) maintained that “China Coast Guard did what was necessary to block and drive away the Philippine vessel,” and that “Huangyan Dao has always been China’s territory. What the Philippines did looks like nothing more than self-amusement” (FMPRC, September 26; FMPRC, September 27). Earlier in September, New Delhi’s Ambassador to the Philippines Shambu Kumaran expressed solidarity with Manila by pointedly rejecting the Chinese Communist Party (CCP)’s new extended ten-dash map of its sovereignty claims in the South China Sea (SCS) and Line of Actual Control (LAC). He criticized the move from Beijing as unhelpful “cartographic expansionism” (Manila Times, September 3). These two incidents, occurring in the space of less than a month, are only the most recent in a string of aggressive acts in recent years. The reactions of both India and the Philippines are indicative of growing unity among some of China’s neighboring countries as a direct response to the security threat that China poses. In recent years, these two partners have increased the areas of engagement for security collaboration and expressed an intent to further such initiatives. The PRC lambasts the Philippines for choosing “to ignore China’s goodwill and sincerity” (MOFA, August 8), but this rhetoric only reaffirms Manila’s shifting calculus. There are limits to how close the Indo-Philippines defense relationship will get, but there is still ample room to explore various forms of cooperation short of a mutual defense treaty. The coming years will see much more of that exploration start to materialize. The PRC has several options in terms of responding to this emerging dynamic. These range from economic coercion, influence operations, and leveraging its relationship with Russia to put pressure on India. It is unclear which combination of these the PRC will ultimately pursue, though the PRC has made it abundantly clear that backing down in the South China Sea is not an option it is willing to entertain.
- Topic:
- Defense Policy, Bilateral Relations, Coercion, and Aggression
- Political Geography:
- South Asia, India, Philippines, and Asia-Pacific
20. Global IR Research Programme: From Perplexities to Progressions
- Author:
- Deepshikha Shahi
- Publication Date:
- 01-2024
- Content Type:
- Journal Article
- Journal:
- All Azimuth: A Journal of Foreign Policy and Peace
- Institution:
- Center for Foreign Policy and Peace Research
- Abstract:
- Our basic expectations vis-à-vis ‘the international’ have turned our phenomenal existence into two seemingly irreconcilable cognitive prisons: ‘one world’ with homogenizing propensities (dominated by the West) and ‘many worlds’ with heterogenizing predispositions (embodied by the non-West). Every so often, these cognitive prisons—oscillating between the extreme homogenizing propensities of the West and heterogenizing predispositions of the non-West— become obstacles in implementing effective global partnerships that are required to tackle the challenges thrown by global crisis-situations, e.g., the likelihoods of world war, financial crisis, climate change, pandemic, and the like. The agenda of the ‘Global IR research programme’ has emerged to demolish these cognitive prisons. To this end, this agenda finds rational support from multiple auxiliary theories that derive stimulus from hitherto denigrated knowledge-forms thriving in different corners of the world: e.g., Tianxia (all-under-heaven) from China, Advaita (non-duality) from India, and Mu No Basho (place of nothingness) from Japan. Nevertheless, the conditioned reflexes of many IR researchers compel them to receive the emergent knowledge-forms by correlating their ‘source’ and ‘scope’: generally, the knowledge-forms having their source in the West are granted a global scope, whereas the knowledge-forms having their source in the non-West are given a local scope; it is often suspected that the local non-Western knowledge-forms cannot grasp the larger global scenario. Philosophically, these conditioned reflexes emanate from Kantian dualism, which forms disconnected opposites of phenomena-noumena, science-metaphysics, West–non-West etc. This article reveals how the Global IR research programme—inspired by the Chinese, Indian and Japanese cosmovisions—strives to demolish the cognitive prisons of ‘one world versus many worlds’, thereby ensuring the prospective progressions of this research programme.
- Topic:
- International Relations and Research
- Political Geography:
- Japan, China, India, and Global Focus