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81. Impact of China Slowdown on India

Author:
Geetima Das Krishna and Ankit Bhardwaj
Publication Date:
02-2016
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
After three decades of double-digit growth, China is slowing as it is rebalancing its economy from export-driven to less-volatile domestic consumption driven economy. The paper looks at the impact of China slowdown on India through different channels. Even though India is usurping China as the fastest growing major economy in the world, Indian economy being a fifth of the Chinese economy and also less material intensive can hardly substitute for China as a global growth driver. China has emerged as the largest trading partner of India but India’s trade still remains less vulnerable to Chinese slowdown directly as India’s services exports account for as much as 50% of India’s overall exports (merchandise and services). On the other hand, China’s total FDI investment in India has been miniscule $1.2 billion till September 2015 and India’s infrastructure sector, with its massive investment needs, can be the natural destination for Chinese investments. India reaped the indirect benefit of lower commodity prices in terms of narrower CAD, softening inflation, lower interest rate, increased government fiscal bonanza, all of which contributed to greater macro-stability in India. It was also found that a 50bps decline in China’s growth rate is likely to lower India’s growth by 30bp in the short run.
Topic:
International Trade and Finance, Bilateral Relations, Economy, Economic Growth, and Regional Integration
Political Geography:
China, South Asia, India, and Asia

82. India’s Reinvigorated Relationship with Africa

Author:
Rani Mullen and Ashish Arora
Publication Date:
12-2016
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
The 21st century is witnessing a substantial re-engagement of India and Africa. Though India and Africa have a history dating back millennia, bilateral relations for most of the 20th century were tepid as each focused inward, first on anti- colonial struggles and then on building up their independent countries. However, since the turn of the century India has re-engage with Africa as both experienced significant economic growth and face similar development challenges on their path towards sustained progress. Acknowldeging the importance of mutual cooperation, both India and African countries have been engaging with each other through bilateral and multilateral initiatives, including the Pan-African e-network, India- Africa Forum Summits, such initiatives signal India and Africa's mutual interest in strengthening their relationship and South-South cooperation. Furthermore, in a changing global order where OECD countries are experiencing low growth trends and with the emergence of new multilateral institutions such as the BRICS countries-led New Development Bank, these rising powers are influencing global governance, geoeconomics, as well as the global development architecture. This report analyzes the changing India- Africa relationship, with a special focus on development partnerships between the two regions and the future potential of the relationship.
Topic:
International Relations, Development, Diplomacy, International Cooperation, Bilateral Relations, Geopolitics, and Economic Growth
Political Geography:
Africa, South Asia, and India

83. India-Japan Brief

Author:
Rani Mullen and Kashyap Arora
Publication Date:
11-2016
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
Japan and India constitute two of the oldest democracies in Asia and also stand among Asia’s three biggest economies. It was in the year 1952 that India and Japan signed their first treaty and six years later in 1958, India received its first official development assistance from Japan. However, a major breakthrough in the bilateral ties took place only in the year 2000 when Japanese Prime Minister Yoshiko Mori visited India. The visit witnessed establishment of ‘Global Partnership between India and Japan’. This relationship was elevated to ‘Global and Strategic Partnership’ in 2006 which was later followed by up gradation of the bilateral partnership to the status of ‘Special Strategic and Global Partnership’ in 2014. In December 2015, both Indian and Japanese leaders also laid out the future roadmap of India-Japan ties in a joint statement referred to as ‘Japan and India Vision 2025: Special Strategic and Global Partnership Working Together for Peace and Prosperity of the Indo-Pacific Region and the World’. Both the economies also find themselves in a mutually beneficial situation with Japanese economy finding it difficult to sustain economic growth due to its ageing and shrinking population size, whereas India suffers from infrastructural bottlenecks. More importantly, stronger India-Japan alliance also provides impetus to balance and counter the growing Chinese influence and ensure freedom of navigation and multilateralism in the Indo-Pacific. Both the countries also constitute a strong source of mutual support at multilateral level on global issues including each other’s candidature as a permanent member of an expanded United Nations Security Council (UNSC) as well as India’s membership in the four international nuclear export control regimes among many others.
Topic:
International Trade and Finance, United Nations, Bilateral Relations, Partnerships, Economies, and Multilateralism
Political Geography:
Japan, South Asia, India, and East Asia

84. EU-India Strategic Partnership Needs a Reality Check

Author:
Patryk Kuglel
Publication Date:
10-2015
Content Type:
Policy Brief
Institution:
The Polish Institute of International Affairs
Abstract:
The EU-India Strategic Partnership launched in 2004 has made only modest achievements and needs a thorough rethink. Both sides must reset cooperation and base it on a more realistic footing centred on common interests, such as economic cooperation, global governance, development cooperation, and defence. The resumption of free trade negotiations, the organisation of a long overdue bilateral summit, and more frank dialogue on contentious issues is necessary in order to utilise the partnership’s potential. Poland may use this strategic drift to revitalise bilateral cooperation and play a more active role in reviving EU-India dialogue.
Topic:
Economics, International Trade and Finance, Politics, Bilateral Relations, and Governance
Political Geography:
Europe and India

85. India—Pakistan Relations: Does Modi Matter?

Author:
Frédéric Grare
Publication Date:
03-2015
Content Type:
Journal Article
Journal:
The Washington Quarterly
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
As the new Indian government has settled in, what will happen to its relations with Pakistan? While some take comfort in the idea that the strong nationalist credentials of the new Prime Minister could facilitate a peace agreement with Pakistan, others argue that the risk of communal violence created by the Hindutva ideology of the new government could be a potential impediment to better India–Pakistan relations. But the evolution of the bilateral relationship is unlikely to depend on either of these considerations; it is also unlikely to depend primarily on New Delhi.
Topic:
Bilateral Relations
Political Geography:
Pakistan, India, and New Delhi

86. Working With a Rising India

Author:
Charles R. Kayne, Joseph S. Nye Jr., and Alyssa Ayres
Publication Date:
11-2015
Content Type:
Special Report
Institution:
Council on Foreign Relations
Abstract:
“A rising India offers one of the most substantial opportunities to advance American national interests over the next two decades,” asserts a new Independent Task Force report sponsored by the Council on Foreign Relations (CFR), Working With a Rising India: A Joint Venture for the New Century. Over the past ten years, India, the world's largest democracy, has lifted more than 130 million people out of poverty. The country has rebounded from a recent economic growth slump, surpassing China this year to become the world's fastest-growing major economy. “If India can maintain its current growth rate, let alone attain sustained double digits, it has the potential over the next two to three decades to follow China on the path to becoming another $10 trillion economy,” notes the Task Force. With Indian Prime Minister Narendra Modi's prioritization of economic growth and foreign policy revitalization, the country now has a window of opportunity to either make the necessary reforms or risk being left behind. “[India] will have to decide whether it wants to become a major part of global trade flows and deeply integrated into global supply chains. Doing so would boost India's efforts to grow its manufacturing sector and its economy; choosing not to will make that ambition harder to achieve.” Because India does not seek an alliance with the United States and closely guards its policy independence, U.S.-India relations will not resemble those Washington has with its conventional allies. For that reason, the Task Force recommends that “U.S. policymakers [should] explicitly emphasize a ‘joint-venture’ model for U.S.-India relations, focused on a slate of shared pursuits on which interests converge—and with clear mechanisms for coordinating and managing the known and expected disagreements.” The bipartisan Task Force is chaired by Charles R. Kaye, co-chief executive officer of the private equity firm Warburg Pincus and former chairman of the U.S.-India Business Council, and Joseph S. Nye Jr., distinguished service professor and former dean of the Harvard Kennedy School. Directed by CFR Senior Fellow for India, Pakistan, and South Asia Alyssa Ayres, the Task Force is composed of sixteen prominent experts from government, academic, nonprofit, and other sectors.
Topic:
Diplomacy, International Cooperation, International Trade and Finance, Bilateral Relations, Democracy, and Economic Growth
Political Geography:
India, Asia, North America, and United States of America

87. Back in the Same Orbit and Back on Earth

Author:
Satu Limaye
Publication Date:
05-2015
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
Given the drift and depths to which the US-India relationship has succumbed throughout much of 2013 and the early part of 2014, visits by the two heads of government in the span of a few months constituted something of a return to the same orbit, symbolized by the fact that the two countries’ Mars orbiters (Mangalyaan and Maven) had entered the planet’s orbit within a couple of days of each other. Prime Minister Modi visited Washington in late September 2014, just four months after taking office. President Obama followed up with an important visit to India in January 2015 as the “Chief Guest” for India’s Republic Day, the first US president to be accorded this honor. But as always with US-India relations, positive symbols are suffused with caution. In the event, there were no major run-ins during the period of US-India relations covered by this article. Though, there were few major breakthroughs either. The relationship did recover very soon after the resounding election victory of Narendra Modi following India’s national elections in May 2014. The pace at which high-level US-India ties were reestablished under a Modi administration was something of a surprise given the unusual situation of his being barred from traveling to the US due to allegations about his role in the communal riots between Hindus and Muslims in the Indian state of Gujarat that he once led as chief minister. The improbable dilemma of the US government banning an official visit by a democratically elected leader, who had not been convicted of illegal acts by his own country or any international body, was finessed by simply removing the ban and issuing a message of warm welcome by President Obama himself. Prime Minister Modi thus visited Washington in late September 2014, just four months after taking office and on the back of an appearance at the annual UN General Assembly meeting in New York. President Obama followed up with an important visit to India in January 2015 as the “Chief Guest” for India’s Republic Day, the first US president to be accorded this honor. Obama also became the first US president to visit India twice while in office. Another first was the appointment in December 2014 of a US ambassador to India of Indian origin, Richard Rahul Verma. Given the drift and depths to which the bilateral relationship has succumbed throughout much of 2013 and the early part of 2014, the two heads of government visits constituted something of a return to the same orbit, symbolized by the fact that the Indian Space Research Organization’s (ISRO) and National Aeronautics and Space Administration’s (NASA) respective Mars orbiters (Mangalyaan and Maven) had entered the planet’s orbit within a couple of days of each other. Indeed, PM Modi alluded to the connection at a joint media conference with President Obama in September saying “I’m happy that we are meeting here just a few days after the Indian and the U.S. missions reached Mars around the same time. So after the India-U.S. summit on Mars, we are meeting here on Earth. This happy coincidence captures the potential of our relationship.” But as always with US-India relations, positive symbols are suffused with caution. While also noting the “pleasant coincidence” of the two orbiters proximate trip to Mars, Assistant Secretary of State for Arms Control, Verification and Compliance Frank Rose suggested to an Indian audience in March 2015 that the time might be right for a “Space Situational Awareness” information sharing agreement, implying to listeners the need to avoid accidental collisions. In the event, there were no major run-ins during the period of US-India relations covered by this article. Though, as will become clear, there were few major breakthroughs either.
Topic:
Diplomacy, International Cooperation, Bilateral Relations, and Elections
Political Geography:
India, Asia, North America, and United States of America

88. Reorienting U.S. Pakistan Strategy: From Af-Pak to Asia

Author:
Daniel S. Markey
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
After 9/11, the global fight against al-Qaeda and the related war in Afghanistan forced the United States to reassess its strategy in Pakistan. The exigencies of counterterrorism and counterinsurgency established Washington's primary goals and many of its specific policies. Now, however, the impending drawdown of U.S. troops from Afghanistan, along with significant U.S. successes in operations against al-Qaeda, require the United States to take a fresh look at its Pakistan strategy and to move beyond the "Af-Pak" era.
Topic:
Security, Foreign Policy, Defense Policy, Development, Diplomacy, and Bilateral Relations
Political Geography:
Pakistan, South Asia, and India

89. The U.S.-India Relationship: Cross-Sector Collaboration To Promote Sustainable Development

Author:
Michael J. Fratantuono, Dr. David M. Sarcone, and John D. Colwell Jr.
Publication Date:
09-2014
Content Type:
Book
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
In August 2012, my colleague, David Sarcone, and I learned that a proposal for a workshop entitled, “The U.S.-India Relationship: Cross-Sector Collaboration to Promote Sustainable Development,” that we had submitted to the Strategic Studies Institute (SSI) of the U.S. Army War College (USAWC) had been selected for funding under the Academic Engagement Program of SSI. The workshop, which we coordinated and directed in conjunction with SSI, was held at our home institution, Dickinson College, from March 12- 14, 2013. The roster of participants was diverse and impressive: It included leading scholars, military officers, government officials, and representatives from the for-profit and not-for-profit sectors from India and the United States. The purpose of this volume is to share formal contributions made to the workshop by participants, and to convey some of the insights that surfaced during workshop sessions.
Topic:
Development, Treaties and Agreements, and Bilateral Relations
Political Geography:
United States, South Asia, and India

90. TSG IntelBrief: The U.S.-India Relationship Reinvigorated

Publication Date:
10-2014
Content Type:
Policy Brief
Institution:
The Soufan Group
Abstract:
Indian Prime Minister Narendra Modi's September visit to the United States allowed for the "soft reset" of a strategic partnership that has been in search of greater focus in recent years The smiles and handshakes served to ease the anxieties that had been building on both sides and had contributed to increased squabbling in the bilateral relationship Mutual frustrations are likely to continue in areas such as intellectual property rights and multilateral trade negotiations, where there has been no reconciliation in the two countries' largely incompatible points of view The U.S. and India share clearly convergent interests in both combating Islamist militancy and in balancing against a rising China Although the partnership's full potential is far from realized, these two geostrategic issues are sufficient to keep the trajectory positive and to sustain widely-held hopes that ties between the world's two largest democracies will continue to deepen.
Topic:
Foreign Policy, Diplomacy, Economics, International Trade and Finance, Markets, and Bilateral Relations
Political Geography:
United States, South Asia, and India