IFP Key Drivers
IFP Key Drivers
To cite this article: Varun Sahni (2007): India's foreign policy: Key drivers, South African Journal of International Affairs, 14:2,
21-35
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21
Introduction
Strategic autonomy
The roots of India's quest for strategic autonomy can be traced back
to 1991, and even all the way back to India's independence in 1947.
Non-alignment was the attempt of a large, but weak, post-colonial
state to maintain policy autonomy in a bipolar world. In 1971, in the
face of an emerging Washington-Beijing-lslamabad axis and in
Status transformation
The second driver of India's foreign policy is palpable even to
outsiders: India's desire for status transformation in the international
political system. This desire manifests itself most obviously in India's
overt bid to acquire a permanent seat with veto rights in the United
Nations Security Council (UNSC). In 2004-05, India was a committed
member of the Group of Four (C-4), an alliance of convenience with
Germany, Japan and Brazil formed for the exclusive purpose of
supporting each other's bids for permanent UNSC seats. Although the
G-4 gambit failed spectacularly in September 2005, India's desire for a
UNSC permanent seat remains a strong driver of Indian diplomacy.
It is worth noting that India's foreign policy has always exhibited a
dichotomy between principle and practice: an ideological opposition
both the capability and the willingness to manoeuvre their way into
great power status. Indeed, the emergence of India is now widely
recognised as one of the significant developments in world politics
over the past decade.
Access to technology
Although strategic autonomy and status transformation are
fundamental drivers of India's foreign policy, this does not imply that
India is either willing or able to 'go it alone' in the international system.
On the contrary, India needs to interact with the outside world for a
wide variety of reasons, not least of which is access to new
technologies that, in a globalised world, cannot germinate in any single
country in isolation. This imperative poses a significant challenge to
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Energy security
If access to technology has been a longstanding driver of India's
foreign policy, concerns about guaranteed access to energy supplies
has emerged in the past few years as a powerful foreign policy driver.
India has an enormous population that is growing and modernising
rapidly from a low socio-economic base. India's energy dependence is
expected to grow fivefold over the next 25 years.9 Its growing hunger
for energy is evident: it now has the sixth largest energy consumption
in the world and one of the fastest growth rates of increasing energy
consumption.
Energy scarcity, both in its burgeoning cities and its rural
hinterland, is emerging as an issue that could have an impact on India's
internal security. It therefore comes as no surprise that the search for
energy security has become a fundamental driver of foreign policy.
The frenetic search for energy will therefore drive India's
diplomacy in many parts of the world into the foreseeable future. In
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return for its civil nuclear co-operation agreement with India, the US
has attempted to wean India away from a possible gas pipeline project
that would connect Iranian supplies to the Indian market via Pakistan.
However, it is clear that India needs to diversify its energy basket.
Thus, it can be expected that all feasible energy options — building gas
pipelines, constructing nuclear reactors, diversifying oil supplies,
revisiting coal-fired thermal power stations, investing in alternative
fuels and renewable energy — will be considered and put into
operation in the coming years.
Regional consolidation
One of the most important drivers of India's foreign policy is the
imperative to integrate and pacify its own region. In South Asia, India
clearly is the regional power: its population,10 GDP11 and military
expenditure12 are three times larger than those of all its neighbours
combined. Military power in South Asia is also acutely concentrated.
India's military and paramilitary forces vastly outnumber those of its
neighbours,13 as do the weapon systems and platforms in its arsenal.
Unsurprisingly, India is a status quo power at the regional level.
Nevertheless, its dominance in South Asia is contested, often severely,
by its regional neighbours. This poses a serious challenge for Indian
policy: India cannot emerge at the global level if its neighbours keep
its policy attention focused on the region. For India, its region isn't a
launching pad, it's a constraint.
Over the past three decades, China has built strong political and
economic links with nearly all of India's neighbours in South Asia.
While India has failed to present a feasible regional vision and invest
heavily in it, China has worked in a systematic and piecemeal manner
to create an alternative incentive structure for India's neighbouring
countries. The net result, by Chinese design and Indian default, has
been to tie India down within a regional framework that is detrimental
to India's interests and ambitions.
Asian balances
Thus, a new driver of India's foreign policy is its search for a
continental role. As an Asian and Indian Ocean power, India has
always had a strategic geographic location. Furthermore, the shift in
the global centre of gravity from the Euro-Atlantic to the Asia Pacific is
increasing India's global weight, as it is doing for the other major Asian
states. The rise of China, emergence of India, normalisation of Japan
and staying power of the US will make the 21st century an
'Americasian' century.18 Unlike Europe, Asia is still living in the era of
political modernity; the principal political driver across the Asian
continent remains the sovereign territorial state perfecting its
sovereign territoriality.
Unless proactive diplomacy succeeds in preventing it, two
opposing axes of power in Asia will emerge over time due to the rise
of China and American attempts to contain Chinese power. For India,
this would not be a welcome scenario either externally or domestically
and would raise many troubling policy dilemmas. It is unlikely that
India will be drawn into the containment of China. India is simply too
Overseas Indians
The final driver that we will consider is very recent in origin. India has
launched a proactive diaspora policy to attract persons of Indian
origin. This initiative involved setting up a High-Level Committee on
Indian Diaspora, which submitted its report in December 2001.20 This
changed. For example, during the Gulf War of 1991, India airlifted
about 300 000 Indians from the region and brought them back to
India. In July 2006, at the height of the Israeli offensive in Lebanon,
four Indian Navy warships docked at Beirut in order to evacuate
12 000 Indians living in that country. What explains this dramatic
change in policy?
Three factors have contributed to the new diaspora policy. The
first is religious-cultural: the emergence of Hindu assertiveness in India
and in the diaspora has been simultaneous and mutually reinforcing.2'
The election of the Bharatiya Janata Party (BJP) to power therefore led
to a radical re-examination of India's policy towards overseas Indians.
The second is economic: the Reserve Bank of India reports that Indians
living abroad transferred $24.6 billion to India in the fiscal year
2005-2006, which amounts to 3.08% of the country's GDP (in
comparison, exports from India's booming software sector brought in
$23.6 billion in 2005-2006).22 But the final factor - politics - is
perhaps the most important one. The Indian government has realised
the impressive political influence that overseas Indians can bring to
bear in the policymaking process of other countries; lobbying by
Indian-American organisations in the US is easily the most important
example of this political influence.23
Nevertheless, the politics of extra-territorial incorporation also
poses novel challenges for India's foreign policy. What should India do
if persons of Indian origin were to clash with the government of a
country with which India has friendly ties? This question is far from
academic, as India learnt when it initially supported Tamil insurgent
groups against the Sri Lankan government. India faced an awkward
situation in December 2007, with the Hindu Rights Action Front, a
coalition of 30 Hindu non-governmental organisations in Malaysia,
openly taking on the Malaysian government. While there is
considerable sympathy in India for the Indian population in Malaysia,
the Indian government clearly decided not to get involved in a
diplomatic squabble with Malaysia on the issue.24
Culture
Socially plural and constitutionally inclusive, India will continue to be
extremely suspicious of battle lines drawn on the basis of cultural
extremism and exclusion. India has the world's second largest Sunni
and Shia populations, so its relations with the Ummah — the worldwide
community of Muslims — will remain balanced and moderate. India
can be expected to resist ferociously any foreign alignments resulting
from a 'clash of civilisations': its domestic social peace depends upon
it. This factor explains, for instance, why an India-Israel alliance against
the Islamic world in general and Pakistan in particular remains nothing
more than a figment of the fevered imagination of some Pakistani
analysts.27 Similarly, India's unwillingness to loosen ties with Iran,
despite significant US pressure, is also partly explained by the
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civilisation factor.
Geography
As India's energy dependence grows and as foreign trade captures an
ever-larger part of the Indian economy, India's dependence on sea
lanes of communication will surely increase. In other words, India will
soon have both a reason and the resources to build an authentic blue
water naval capability.28
As India's defence doctrine moves from territorial defence to
some form of extended defence, India can also be expected to
develop a limited ('one ocean plus') expeditionary capability. India's
security perimeter will slowly expand as well from the Strait of Hormuz
to the Strait of Malacca.
However, India's continental location and preoccupations will put
limits on its maritime power (as it will on that of China). In other words,
the constraints of geography will prevent India from becoming a first-
rank maritime power.
Markets
When India opened its economy in 1991, the fear that Indian
companies would be overwhelmed by overseas competition was
widespread and palpable. This fear was exemplified by the so-called
Bombay Club, an informal grouping of some of India's most prominent
business tycoons who came together to protect the interests of local
companies from foreign predators. Just 15 years later, it is clear that
many Indian companies are globally competitive across a range of
sectors and markets, more often predators than-prey in the global
jungle of mergers and acquisitions.
Perhaps the best example of this is the $11.3 billion buyout of the
British Corus Group by India's Tata Steel in January 2007. The shift in
weight is self-evident: in 1907, when Tata Steel was being set up, a
British colonial administrator had scoffed at the very notion that an
Indian company could produce steel.29
Although domestic demand still drives two-thirds of the Indian
economy, many Indian companies, especially in sectors such as
information technology and Pharmaceuticals, are increasingly outward
oriented. In 2004-05, foreign direct investment (FDI) by Indian
companies in other countries stood at $1.5 billion, nearly half the FDI
that India itself attracted in the same year.30 The apex industrial
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Norms
Finally, although it is still not very popular in India to say so, the
country is beginning to leave a negative footprint upon the global
commons. As India industrialises, it will become a major consumer of
energy and emitter of pollution.34 India is located between the Golden
Crescent and the Golden Triangle and has therefore become a major
transit country in the global narcotics trade.3S It will soon have the
world's largest number of HIV/Aids infected persons.36 Sooner, rather
than later, these concerns will become a major component of India's
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Endnotes
1 VARUN SAHNI is Professor of International Politics at the School of International
Studies, Jawaharlal Nehru University, New Delhi, India.
2 In 1960, Selig Harrison had suggested that India was living through its most
dangerous decades. See Harrison S, India: The Most Dangerous Decades. Princeton,
NJ: Princeton University Press, 1960. The 1990s, for India, were even more
dangerous than the 1960s.
3 According to the Rumsfeld Commission Report (1998), China supplied 30 M-11
missiles to Pakistan in 1991-92. See 'Pakistan's Nuclear Capable Missiles', The Risk
Report, 5, 1, January-February 1999, Wisconsin Project on Nuclear Arms Control,
[Link]
4 The text of the Brasilia Declaration (2003) can be downloaded from http://
[Link]/[Link].
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5 US Secretary of State Henry Kissinger proposed the creation of the Nuclear Suppliers
Group in London in 1975, immediately after India's first nuclear test in 1974.
6 The Symington Amendment to the Foreign Assistance Act of 1961, adopted by the
US Congress in 1976, prohibits American economic and military assistance to any
country delivering or receiving nuclear enrichment equipment, material, or
technology not safeguarded by the International Atomic Energy Agency (IAEA). The
Glenn Amendment to the Foreign Assistance Act of 1961, adopted by the US
Congress in 1977, prohibits US assistance to any non-nuclear weapon state (as
defined by the Nuclear Non-Proliferation Treaty) that conducts a nuclear explosion.
The Nuclear Nonproliferation Act (1978) prohibits the export of nuclear technology
to non-nuclear weapon states unless the recipient state accepts full IAEA safeguards.
These three laws were key to preventing 'dual-use' trade between India and the US.
7 Bagchi I, 'Indo-US Relations High on Tech', India Today on the Net, 24 November
2003, [Link].
8 US Department of State, 'US and India Release Text of 123 Agreement', 3 August
2007, [Link]
9 According to the Indian government's Planning Commission, India's total primary
commercial energy requirements are projected to increase from 403 Mtoe (millions
of tonnes of oil equivalent) in 2006-07 to 2 289 Mtoe in 2031-32. See Government
of India, Planning Commission, Integrated Energy Policy: Report of the Expert
Committee. New Delhi: Planning Commission, August 2006, Table 2.4, p.18,
[Link]
10 According to the latest available data, India's population in 2004 (1 085 million) was
3.4 times larger than the combined population of Afghanistan, Bangladesh, Bhutan,
Maldives, Nepal, Pakistan and Sri Lanka (321 million). United Nations Statistics
Division, 'Estimates of mid-year population: 1995-2004', [Link]
unsd/demographic/products/dyb/DYB2004/[Link].
11 India's GDP in 2006 ($906,268 million) was 3.6 times larger than that of all its South
Asian neighbours combined ($251,327 million). World Bank, World Development
Indicators, Washington DC: World Bank, 1 July 2006. Available at
[Link]
12 India's military expenditure in 2004 ($19,821 million) was 4.2 times larger than the
combined military expenditures of Pakistan, Bangladesh, Sri Lanka, Nepal and
Maldives ($4,771 million.) The International Institute for Strategic Studies, The
Military Balance 2006. London: Routledge, 2006, p.400 (Table 44: Comparative
Defence Expenditure and Military Manpower, 2002-2004).
13 In 2006, India had 1.3 million military and 1.7 million paramilitary personnel, which
was twice the size of the military and paramilitary strength of Afghanistan,
Bangladesh, Maldives, Nepal, Pakistan and Sri Lanka combined (1.5 million). Ibid.
14 See Kelegama S, 'The Bilateral Track: The Case of the India-Sri Lanka Free Trade
Agreement', South Asian Survey, 13, 2, 2006, pp.295-301.
15 See Kaul M, 'Regional Groupings: An Overview of BIMSTEC and MCG', South Asian
Survey 13, 2, 2006, pp.313-322; also Singh S, 'Mekong-Ganga Co-operation
Initiative: Analysis and Assessment of India's Engagement with Greater Mekong Sub-
region', Occasional Paper 3, IRASEC (Bangkok), 2007.
16 According to the Indian defence ministry: 'India is making every effort to enhance its
defence ties with its extended neighbourhood in South-East Asia, North-East Asia,
Central Asia, the Gulf and Middle East regions.' See Government of India, Ministry
of Defence, Annual Report 2006-2007, New Delhi: Ministry of Defence, 2007, p.11.
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17 See Malik M, The East Asia Summit: More Discord than Accord', YaleGlobal Online,
20 December 2005, [Link]
18 I first used this term in 2006. See Sahni V, 'India and the Asian Security Architecture',
Current History, April 2006, pp.161-166.
19 The diplomatic historian Paul Schroeder has suggested that states do not only
balance against rising powers, as suggested by neo-realists like Kenneth Waltz; they
could also choose to climb onto a bandwagon with the rising power, hide from
power politics or transcend the balance of power game by building institutions. See
Schroeder P, 'Historical Reality vs. Neo-realist Theory', International Security, 19, 1,
Summer 1994, pp.108-148.
20 Government of India, Report of High Level Committee on Indian Diaspora,
[Link]
21 See Jaffrelot C (ed), Hindu nationalism: A Reader. Princeton, NJ: Princeton University
Press, 2007, pp. 361-369; also see Jaffrelot C, The Hindu Nationalist Movement in
India. New York: Columbia University Press, 1997; Vertovec S, The Hindu Diaspora:
Comparative Patterns. London: Routledge, 2000.
22 Chishti M, 'The Rise in Remittances to India: A Closer Look', Migration Information
Source, Migration Policy Institute, February 2007, [Link]
org/Feature/[Link]?ID=577.
23 McIntire M, 'Indian-Americans hone their lobbying: Nuclear deal offers a test of their
sway', International Herald Tribune, 6 June 2006, [Link]
2006/06/05/news/[Link].
24 Mohan CR, 'Malaysian Indian row: PMs careful, there's room yet for some quiet talk',
Indian Express, 4 December 2007, [Link]
[Link].
25 Perlez J, 'Vast Rally for Democracy Opens in a Polish Castle', New York Times, 26
June 2000; see also US Department of State, 'Final Warsaw Declaration: Toward a
Community of Democracies', 27 June 2000, [Link]
[Link].
26 This leads to the reflection (with apologies to Leo Tolstoy and Anna Karenina) that
while all dictatorships are essentially alike, every democracy is a democracy in its
own special way.
27 See Hamid M, The Unholy Alliance: Indo-lsraeli Conspiracy against the Muslim World.
Lahore: Islamic Book Centre, 1978; Jafar G, '"Soul mates" come together: The
Brahmanic-Talmudist alliance', Regional Studies, 20, 2, 2002, pp.3-65.
28 See Barnett TPM, 'India's 12 steps to a world-class Navy', United States Naval Institute
Proceedings, July 2001, pp.41-45; also see Prakash A (Admiral), 'A Vision of India's
Maritime Power in the 21st Century', USI Journal, CXXXV1, 566, October-December
2006, pp. 555-564.