Economics in Narendra Modi’s Foreign Policy

Narendra Modi became the 15th Prime Minister of India on 26 May 2014 after leading the Bharatiya Janata Party (BJP) to a spectacular victory in India’s last general election. With a strong political mandate and an almost unchallenged leadership, Modi has begun putting in place his and the BJP’s vision of modern India. Modi’s first year in office witnessed his pursuing a vigorous external engagement policy. He travelled to countries far and wide leaving lasting impressions of his visits through passionate efforts to establish India as an attractive destination for global capital. His charisma was noticeable and reflected in the striking bonhomie with his counterparts. Some of his addresses to the foreign audiences, particularly the overseas Indians, were comparable to the glamour and intensity characterizing performances of top entertainers. The energy that Modi has brought to the conduct of Indian foreign policy in his first year in office was clearly noticeable. He was successful in producing a major shift in the global perception on India by generating positive sentiments about the outlook of the Indian economy and the constructive and proactive role that India could play in global and regional affairs. Indeed, it is evident that India’s foreign policy under Modi would be driven by economic objectives and would primarily enable the latter. This paper analyses the emerging patterns, economic objectives and drivers of Modi’s foreign policy. The policy is based on the BJP’s vision of India as a major actor in global affairs on the basis of the strategic influence flowing from strong economic performance. The paper identifies domestic economic growth, access to energy, engaging the diaspora and deeper foothold in global and regional forums as the key drivers of the Modi government’s external engagement strategy. It concludes by highlighting some of the challenges likely to be encountered by the strategy in the days to come.

Keyword: Narendra Modi, Diaspora, External Engagement, Domestic Economic Growth, Foreign Trade Policy

Amitendu Palit

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