Economic Relations

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  • BRICS: In Search of Unity?

    While their growing economic clout has brought Brazil, Russia, India, China and South Africa together, translating the hand holding gestures at the end of each summit into real unity is likely to remain a daunting task.

    April 03, 2012

    The Eurozone Crisis and India-EU Ties

    In the absence of even an FTA, the main challenge before policy makers from India and the EU will be to continue justifying the relevance of a strategic partnership to their respective constituencies.

    February 07, 2012

    Shijith Kumar asked: After a decade of negotiations, why the Doha Round has not succeeded?

    Jagannath P. Panda replies: The Doha round of talks has not been primarily successful because of the invariable differences between the developed and developing countries on the WTO settings, and about the rules and regulations of the IMF and World Bank. The developing countries mostly argue that the current rules and regulations in most of the global financial bodies are more in favour of the developed or industrialised countries. Also, the developed countries are not forthcoming when it comes to trade concessions for the developing countries or the rising economies. They conduct their business dealings as usual through customary ways i.e., by subsidising their agricultural sectors and setting the market conditions that suits their needs, without caring much about developing countries’ needs. On the contrary, the developed countries/blocs like the US and the EU have been of the view that the developing economies have failed to agree and converge with the developed countries’ demands for near zero-tariffs in important sectors, like agriculture and services.

    These fundamental differences in the Doha Round of talks have increased the divide between the developed and the developing countries. Most of the talks in Doha so far have pressurised the developing countries to open their markets further, overlooking the need for bringing transparency to the rules and regulations in the global financial bodies, like the WTO, IMF and the World Bank. Though it seems that the main reason behind the failure of the Doha Rounds are systemic problems, linked to rule and regulations of the global financial bodies; but the process of discussion has been politicised gradually among the two mainstream blocs- developed and developing countries. Further, there seems to be a lack of coherent strategy among the developing countries to form a credible union which would help put more pressure on the Western or developed powers to bring transparency and make amendments in the rules in the WTO, IMF and the World Bank.

    Hans Raj Singh asked: What is the impact of Arab uprisings on India, politically and economically?

    Prasanta K. Pradhan replies: The uprisings in the Arab world do not seem to have any direct political impact on India as India does not play a proactive political role in the region; rather, it poses a challenge for India’s foreign policy. India is opposed to any kind of intervention in the affairs of other states and believes that the problems should be resolved taking into account people’s aspirations. Thus, India abstained from voting in the United Nations Security Council over draft resolutions on Syria and Libya. However, with huge stakes involved in the region – political, economic and security - the Arab uprisings are a test case for India’s policies and approach towards the region.

    Economically, the Arab uprisings have led to a sharp increase in oil prices as oil production and supply were affected by the protests. The oil prices increased from around US$ 89 per barrel in December 2010, when the protests started, to over US$ 120 per barrel in May 2011. This can be attributed as one of the reasons for the rising oil prices in India. The impact of the uprisings on trade and investment has not yet been properly ascertained. But it has been reported that a number of Indian companies who have invested in several projects in the region, particularly in North Africa, are concerned about their investments and the future security environment in the affected countries. Also, there may be some marginal fall in remittances as number of Indian workers from Libya and Egypt have come back home.

    Prospects and Challenges for Expanding India-Japan Economic Relations

    A new tide is visible in Japan for expanding Indo-Japan relations based on mutual complementarities.

    October 03, 2011

    Integrating India with the Global Export Controls System: Challenges Ahead

    The rising economic and political profile of India is making it to search for a new pattern of interaction with global forces. India's unique relationship with export controls is passing through a new and positive phase. In recent years, India is trying to integrate itself fast with global best practices for export controls. However, it is facing roadblocks in its integration with the existing system.

    May 2011

    Giving away our best and brightest

    The present state of affairs indicates that India will continue to be a reservoir of talent for other countries to power their growth, than the global innovation powerhouse that it aspires to be.

    March 21, 2011

    India-US High Technology Cooperation: Moving Forward

    The amendment of the EAR is intended to realign US export policy towards India and expand cooperation in civil space, defence and high technology sectors.

    February 16, 2011

    Wen Jiabao’s India visit: A Strategic Review

    The success of the visit was limited to strengthening links of economic diplomacy between the two Asian giants, ignoring the geo-political and strategic issues that act as de-stabilisers in Sino-Indian relations.

    January 07, 2011

    India-China Relations: It’s the economy, and no one’s stupid

    This Brief uses irony to communicate five propositions, that can be found in several discourses on Sino-Indian ties. It evaluates these propositions in the light of the tangible and intangible gains from Premier Wen Jiabao’s second official visit to India.

    December 28, 2010