Introduction
In a recent address at a corporate summit in Surat, India's External Affairs Minister, S. Jaishankar, provided a comprehensive overview of India's evolving economic landscape and diplomatic engagements. His remarks encapsulated transformative shifts in India-UAE relations, strategic emphasis on manufacturing, responses to border tensions, global engagement amidst economic resilience, and prospects for future engagement.
Transformed Relations with the UAE
Jaishankar underscored the remarkable transformation in India's relations with the United Arab Emirates (UAE) over the past decade. He noted a perceptual shift towards India and highlighted the signing of a free trade agreement as a pivotal milestone. Bilateral trade has surged to an impressive $80 billion, indicative of the deepening economic ties between the two nations. Moreover, the UAE's acceptance of India's request to build a temple signifies a broader commitment to fostering cultural understanding and cooperation.
Strategic Focus on Manufacturing
Recognizing the imperative to counter China's economic dominance, Jaishankar emphasized the strategic significance of prioritizing manufacturing. He commended the Modi government's proactive approach towards this critical sector, signaling a departure from past neglect. Jaishankar stressed that a robust manufacturing base is essential for enhancing self-reliance and competitiveness on the global stage, positioning India as a formidable economic force.
Jaishankar pointed out that India's approach to manufacturing has transformed under Prime Minister Modi's leadership. He highlighted that before PM Modi's tenure, manufacturing was not given much emphasis, but now there's a clear shift in priorities. Jaishankar underscored that manufacturing is central to India's economic response to China and essential for its competitiveness in the global market.
Border Tensions and Diplomatic Imperatives
Addressing the prevailing tensions along the Sino-Indian border, Jaishankar underscored the detrimental impact on bilateral relations and stressed the paramount importance of peace and stability. He reiterated India's steadfast stance against terrorism, advocating for international cooperation in combating this global menace. Jaishankar emphasized that peace and stability along the border are indispensable for fostering constructive engagement with
Jaishankar emphasized that unless there is peace and stability in the border areas, the ties between India and China will not improve. He highlighted the abnormality caused in New Delhi-Beijing relations due to border tensions. Jaishankar's remarks reaffirmed India's clear stance on maintaining peace and stability along its borders.
Global Engagement and Economic Resilience
Jaishankar highlighted India's resilience amidst the COVID-19 pandemic, attributing rapid economic recovery to substantive reforms and effective responses. India's robust growth trajectory has positioned the nation as an attractive investment destination, garnering global attention and reaffirming its status as a key player on the world stage. Jaishankar emphasized leveraging India's leadership, technological prowess, and strategic partnerships to navigate global challenges and capitalize on emerging opportunities. Jaishankar emphasized the role of reforms and policies in strengthening India's economic position amid the COVID-19 pandemic. He highlighted that India has emerged as the fastest-growing large economy, attracting global attention. Jaishankar's remarks underscored India's resilience and its ability to navigate challenges effectively.
Increasing Demand for Indian Collaboration
According to Mr. Jaishankar, these countries view India as an irreplaceable partner and are eager to collaborate with India regardless of the circumstances.
Mr. Jaishankar also mentioned that numerous countries are keen to establish Free Trade Agreements (FTAs) with India. However, he emphasized that India will only engage in such agreements when the benefits are clear, ensuring that the country is not disadvantaged by potential dumping practices. Highlighting the global demand for Indian doctors and engineers, Mr. Jaishankar stressed India's commitment to safeguarding the interests of its citizens working abroad. He mentioned the establishment of mobility agreements with various countries, including Germany, Austria, Italy, France, and Australia, over the past two years. These agreements aim to ensure that Indian expatriates receive fair and equal treatment while working abroad, reflecting India's proactive approach to protecting its citizens' rights beyond its borders.
India’s Growing Defense Industry
India's defense exports have expanded significantly, reaching more than 85 nations including Italy, the Maldives, Russia, Sri Lanka, the UAE, the Philippines, Saudi Arabia, Poland, Egypt, Israel, Spain, and Chile, among others. The surge in defense exports is evident, with figures rising from Rs 686 crore in 2013-14 to Rs 21,083 crore in 2023-24. Approximately 100 companies are involved in exporting defense products from India. In the 2024-25 fiscal year, the government has allocated Rs 6.21 lakh crore to the defense budget, reflecting a 4.3 percent increase from the previous fiscal year. Amidst challenges posed by neighboring nations Pakistan and China.
India is prioritizing the enhancement of its armament capabilities. While India remains the world's largest arms importer, efforts are underway to reduce dependency on imports by bolstering the indigenous defense industry, involving both public and private sectors. According to the Stockholm International Peace Research Institute (SIPRI), India accounted for 9.8 percent of global defense imports between 2019 and 2023. The United States leads in arms exports, with a 42 percent share, followed by France and Russia at 11 percent each, and China at 5.8 percent.
India's defense exports cover a broad spectrum of equipment, ranging from high-value BrahMos cruise missiles to artillery guns. According to the Economic Times, India's arms exports include Dornier-228 aircraft, radars, armored vehicles, rockets, launchers, torpedo loading mechanisms, alarm monitoring and control systems, lightweight torpedoes, fire-control systems, night-vision monoculars and binoculars, weapons-locating radar, HF radios, and coastal surveillance radar, among others. Offshore patrol vessels, personal protective gear, surveillance systems, and ammunition are also significant components of India's export portfolio.
Data from the defense ministry indicates that India supplies bulletproof jackets to 34 countries, including Australia, Japan, Israel, and Brazil. Approximately 10 countries, such as the United Arab Emirates (UAE), Egypt, Indonesia, and Thailand, have procured ammunition ranging from 5.56mm to 155mm from India.
India is also exporting defense electronics to the US, the UK, and France, while countries like Mauritius, Seychelles, and the Maldives have acquired fast interceptor boats. Vietnam has shown interest in procuring BrahMos supersonic cruise missiles, jointly developed by Russia and India, along with the Philippines. Indonesia is also exploring the possibility of purchasing these missiles. Botswana and Egypt have expressed interest in acquiring single-engine multi-role fighter jets. HAL aims to achieve export sales of Rs 2,500 crore in the coming years, according to Jayadeva EP, its director of operations, as reported by Reuters in February. Additionally, India has entered into a defense deal worth Rs 6,000 crore to export its anti-air system to Armenia, as per a Times of India report from last December. Bharat Dynamics Limited (BDL) will manufacture and deliver the Akash Surface-to-Air Missile (SAM) to the Asian nation.
Kalyani Strategic Systems Limited, an Indian defense firm, plans to supply artillery guns to Armenia for its 155mm weapon system by 2025. India had previously signed a deal in September 2022 to export various weapons, including Pinaka multi-barrel rocket launchers (MBRL), anti-tank missiles, rockets, and ammunition to Armenia. In August of the same year, Armenia received its initial shipment of India’s Advanced Towed Artillery Gun Systems (ATAGS). Reports suggest that New Delhi has offered the anti-air system for export to Vietnam and the Philippines, with Egypt also expressing interest in acquiring it.
Prospects for Future Engagement
Looking ahead, Jaishankar underscored the significance of nurturing strategic partnerships and promoting innovation to propel India's economic prosperity and global leadership. He emphasized harnessing India's demographic dividend and fostering bilateral and multilateral engagements to advance shared objectives. Jaishankar articulated India's commitment to charting a course towards sustained economic growth and leveraging its inherent strengths to realize its aspirations on the world stage.
Jaishankar emphasized the importance of strategic partnerships and innovation in India's future engagement. He highlighted the need to harness India's demographic dividend and foster bilateral and multilateral engagements to achieve shared objectives. Jaishankar's remarks signaled India's proactive stance in shaping its economic future and global engagements.
Conclusion
S. Jaishankar's address offers a comprehensive analysis of India's evolving economic diplomacy, encapsulating transformative shifts in bilateral relations, strategic imperatives, and global engagements. From fostering deeper ties with the UAE to prioritizing manufacturing and navigating border tensions, Jaishankar's insights underscore India's proactive approach to economic diplomacy. As India continues to assert its influence on the global stage, the imperative lies in leveraging strategic partnerships and fostering innovation to propel sustained economic growth and cement its position as a global leader. Through such deliberate efforts, India stands poised to navigate the complexities of an ever-evolving geopolitical landscape, realizing its aspirations while contributing positively to the global community.
Comments