Introduction Minister of State for External Affairs, Anand Sharma shared his perspective on how Indian foreign policy has evolved to suit the changing international, political and economic relations with developed nations while speaking at the round table conference organized by FICCI on 'Foreign policy-Implications for Indian Business' on 8th May 2008. Excerpts:

11

After independence, the factors, which changed the Indian foreign policy, were witnessed in the political scenario, negative effects of the partition and infrastructure rigidity. The main objective of the Indian foreign policy then was to sustain a high level of economic development and eliminate poverty. The challenges were weak in terms of connectivity, infrastructure and economic & political partnership with developed countries.

Imbalances in the socio-economic scenario of the time were reflected in the need for an international relationship where priority was to achieve political objective rather than economic objectives. This was a difficult period as developed countries denied sharing of technological development.

The late 80s saw a shift in the balance of power, end of the cold war, collapse of the Berlin Wall and the Soviet Union, a change for the better with a phenomenal technological growth. Political objectives took the back seat which affected the international relationship with developed countries as there were more technological exchanges. The leadership and initiatives of then Prime Minister Rajiv Gandhi helped India take a huge leap into the field of communication, technology, space sciences including India's generics particularly healthcare.

In the 90s, both political and economic content in foreign policy gained prominence. Economic diplomacy became as important as political diplomacy as both had to be pursued by nation states and had to co-exist to pursue national interest of the country. It was a dynamic phase, which witnessed rapid globalization, with modern modes of transport. Economic activities were intensive with China, Asia, South Africa, and America.

Indian economy was unshackled and ready to take the plunge. The Indian entrepreneurs were free to look for opportunities and investment outside of their country. India's foreign policy aimed for double-digit growth and sustained the same to ensure economic and technological development while education gained priority. These economic activities and industrialization lead to generation of wealth and employment.

Democracy strengthened the fundamental requirements like legal protection. This phase saw emergence of Indian multinationals who invested globally where investments abroad surpassed the investments within the country. The government encouraged investments in urban and rural infrastructure e.g. energy sector saw investments reach a new height of USD 550 billion.

Unlike the past, the foreign policies have to incorporate the economic policies as well as look into aspects like Climate Change, energy security and food security, all three of which have gained much prominence since the recent past. Thus, the Indian government sought to engage all the major powers of the world as external economic development cannot be isolated from internal economic development. The major problems faced were international rivalry and terrorism (especially faced by south Asian countries). This phase stressed on regional stability and growth. India being one of the world's largest economies committed to play a pioneering role in sharing its experiences in technology and political development.

Even though India has expressed its consternation to China on the Tibet issue and also on border issue, it has been encouraging the bilateral trade between the two nations. Indian Economic engagement with China has been growing rapidly. The bilateral trade with China reached USD 38 billion last year and is expected to touch USD 80 billion by 2010. The bilateral trade potential with Asia Pacific countries has grown rapidly to reach USD 60 billion in the last financial year and the bilateral trade with Africa increased to 32 billion dollar.

Significant investments were seen in each and every sector i.e agriculture, automobiles, information technology, communication and pharmaceuticals. The government has formed special divisions in foreign embassies to guide and facilitate investments in various countries. The key areas addressed by the foreign offices which need to be strengthened in various countries are agriculture, science & technology, aid concession, line of credit etc.

The economics of oil and other allied areas play a pivotal role in today's political economy. The Indian foreign policy has laid emphasis on the issue of energy security due to the rise in price of petroleum from USD 50 to 150 in last few years. While assessing the availability of sources of energy, hydrocarbon comes to mind but that too has its limitations. Seventy per cent of India's fuel requirement depends on imports. The government is also encouraging the use of renewable energy like solar, fossil etc.

The alternative energy resource, namely bio-fuel usage needs to be justified to ensure that food in not diversified. Today, we see that huge quantity of food is being diversified to produce bio-fuel e.g. corn which forms the staple diet of many countries. Demand for ethanol and other bio-fuels are "significant contributors" to soaring food prices around the world. Increases in bio-fuel production have contributed to the added demand for food. There is a clear linkage between food and economic security. Thus, foreign policy has to address food and health security issues.

Climate Change is the issue facing all countries in the world. There is a need to have long-term policies and mechanisms to ensure commitments from both developed and developing countries to combat Climate Change by adopting green house mechanisms. These policies need to be common to all and at the same time independent in nature. Indian foreign policy is working towards this goal.

Another important role of the foreign policy is to promote and develop strategic relations with major powers of the world. Today India is working to strengthen its relations with Russia, Japan United Kingdom, United States, Brazil, Germany, and African countries.

There is a visible shift from economic development to territorial security. It is precisely for this reason that several nations from Asia, Latin America and Africa have come together to create a conducive atmosphere in the United Nations (UN) in order to make it more democratic and all encompassing so that more nations can join. This effort is being led by the Indian government repeatedly making its stand clear that it does not support some nation's use of the veto power. Historically the relationship with Africa has evolved positively leading to partnership in education and capacity building in all fields.

Foreign Policy is committed to secure peace and harmony in the world. Indian Foreign policy has been instrumental in changing world economic and political attributions. New reforms in financial institutions are instigated taking into account the development and changes in the last 15 to 20 years. India is re-emerging as an international power.

Today, India has risen to an important position having all the components of a strategic partnership and the ability to forge a healthy relationship with any nation. This century will witness major transformations in countries which in turn will write their own stories.

Foreign Policy commits to peace and harmony in the world, while India makes its sole contribution to the economies mainly to Africa, Asia and Latin-American Caribbean. So in closing, I would say that India is re-emerging and contributes 26% to the world economy. So the Foreign Policy is coherent and well-balanced.