India Emerges as a Reliable Trading Partner Amidst Shifting Global Dynamics

International•1 Jul ’23 17:00Author: Bram van Eijndhoven

Now that China seems to be less and less a reliable partner for Western countries as a trading partner, the focus is shifting to neighboring India. That is not only the largest democracy in the world, but also the fastest growing economy. ‘India can benefit from the great attention it receives,’ says philosopher and political scientist Haroon Sheikh.

According to Sheikh, the West had better prepare for superpower India. According to him, both internal and external factors are currently driving India’s massive momentum on the global stage. ‘India is the largest country in terms of population and has been growing slightly faster than China for a number of years. The country also wants to manifest itself more, which we have seen, among other things, in relation to Russia’s war in Ukraine, where the country simply continues to act.

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As far as these external factors are concerned, the sharply increased tension between the US and China in particular means that all countries are looking for alternatives. India, according to Sheikh, is in the sweet spot. ‘The US wants stronger ties, and so do the EU, Japan and Russia. India can benefit from the great attention that is being paid to the country.’

Modi

It is therefore not for nothing that Indian Prime Minister Narendra Modi flew to America for the first time last week for a state visit. There he was received in the White House by President Biden, but also by leaders of the largest American tech companies. The visit resulted in several trade and cooperation deals for India, including chip manufacturing and aerospace.

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According to India correspondent Lisa Dupuy, Modi is good at presenting himself as ‘non-China’ to American politicians. It is also popular with the Indian diaspora in the US. Outside his hotel, Modi was met and serenaded by a crowd of fans. ‘I think they are very charmed by his conservative cultural policy. And also by the fact that he behaves like a prime minister who really wants to move India forward in terms of infrastructure, economy and modernization. He has been doing that for nine years and people are very happy with it.’

Independent

On the other hand, according to Sheikh, there are also plenty of things that draw India towards Western countries, although the country likes to follow its own course. “The reduction of Chinese dependence means that a lot of money can go to India, and all those investments are very welcome.”

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India is also increasingly concerned about China’s influence from a geopolitical point of view, especially in its own region in Asia, Sheikh said. India is therefore also open to partners with whom it can better balance China, although he emphasizes that India certainly does not want to become the ‘junior partner of the West’ in the anti-China alliance that America is building. It is a strong, independent country that wants to continue to benefit from all the relationships it has, without choosing. It will therefore continue to strengthen ties with Russia.’

Potential

India has a lot to offer the West, according to Dupuy. Like, for example, the largest labor potential of all countries in the world. The country already serves the world in sectors such as the clothing industry and the production of generic medicines, but recently India has also been emphatically open to investment from outside. ‘This should mainly lead to developments in the IT and software sector. India was already big in call centers. Slowly, that should move to the production of our telephones and laptops, and eventually also to the development of new software and products.’

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According to Sheikh, India can only partially be a fully-fledged alternative to the business we are doing with China in that respect. Only India could potentially replace the huge labor force of the Chinese, but its economy is quite different from China’s. ‘The question is whether they can really develop and open up the labor market. They still have a lot to do. But there are many forces at work to ensure that India will try something like this.’

US President Joe Biden and India’s Prime Minister Narendra Modi speak at the White House. Now that China seems to be less and less a reliable partner for Western countries as a trading partner, the focus is increasingly shifting to neighboring India. That is not only the largest democracy in the world, but also the fastest growing economy. ‘India can benefit from the great attention it receives,’ says philosopher and political scientist Haroon Sheikh. (AP / Associated Press)
2023-07-01 15:00:09
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