Asian countries are seeking more attention from New Delhi because they believe the latter is too West-centric in matters of both diplomacy and trade. A Modi Government can re-shape the narrative and shift focus on them
Congress leader and Union Minister for Finance P Chidambaram recently remarked that BJP’s prime ministerial candidate Narendra Modi’s knowledge of economics can be written on the back of a postage stamp. Under Mr Modi, Gujarat has recorded double-digit growth rates, developed roads, generated power, improved industrial production, transformed agriculture and created employment. Mr Modi’s economic record is impressive and is the reason why people are supporting him.
On the other hand, Mr Chidambaram’s record at the helm of the Indian economy is disastrous. Mr Chidambaram has presided over populist schemes, runaway inflation and rising unemployment. His performance at the annual World Bank and IMF meetings have been pathetic,since he has been unable to hold a candle to the likes of Brazilian Finance Minister Guido Mantega. While Mr Mantega has taken on both the US and the EU to protect interests of the emerging economies, Mr Chidambaram has largely deferred to the West and said nothing of note on the world economy.
Insecurity is behind Mr Chidambaram’s bitter outburst. So far, left-leaning Oxbridge and Ivy league types have presided over India. Mr Modi’s rise threatens their applecart and has implications that go far beyond India’s shores. The country’s foreign policy, that has long been misguided or has sputtered along aimlessly, will change dramatically if Mr Modi comes to power. Under his charge, Indian foreign policy shall primarily serve the country’s economic interests.
Indian diplomats have been largely illiterate about business, trade and economics. Ministries of External Affairs and Finance spend little time interacting with each other. Moreover, just as the Chidambaram-led Finance Ministry has bungled India’s economy, the Salman Khurshid-led External Affairs Ministry has destroyed Indian diplomacy. Under his reign, it is rumoured that a threadbare team of barely 700-odd diplomats spends more time chilling champagne for visiting dignitaries then defending India’s interests abroad.
Mr Modi is markedly different from prime ministerial candidates of the past. He hails from Gujarat, which has long been home to trade, commerce and entrepreneurial activity. Unlike semi-feudal States such as Uttar Pradesh and Bihar, Gujarat does not obsess about politics or the administration. Gujaratis go into business and can be found from Kenya to Canada, plying some trade or the another. It is a reality that in the US, that most motels are owned by Patels, a Gujarati community.
Every leader since Independence has followed the Nehruvian foreign policy paradigm. For the first time, Mr Modi represents a break from the Nehru doctrine. He has taken a leaf out of Deng Xiaopeng’s book by betting on rapid economic growth as a solution to many of India’s seemingly insurmountable problems. To increase growth in Gujarat, Mr Modi has been courting investment not only from India but across the world. Under his aegis, the ‘Vibrant Gujarat’ summits have attracted hundreds of billions of dollars as investment. Countries like Canada, Japan, Mozambique and even the UK have flocked to invest in the State. Mr Modi has also led business delegations to Australia, China, Japan, Malaysia, Singapore, South Korea, Taiwan and Thailand. With China, Japan and Singapore, he has established close relations and has endeavored to emulate these countries in developing Gujarat.
India’s economic ties with emerging economies outside Asia are also likely to improve. A huge Gujarati diaspora lives in Africa. lest we forget, Mahatma Gandhi began his political career in South Africa. This diaspora has long been under-utilised by incompetent and arrogant diplomats. This will change under Mr Modi. Closer relations with African economies, from Kenya to South Africa, will most likely be forged. Similar developments can be expected in latin America. Mr Modi’s focus on the economy is likely to go down well with a region that has long lived in the shadow of the US.
Even in the Middle East, relations with some nations are likely to improve. Gujarat has imported Iranian oil in the past, and a Modi Government will be less likely to support US efforts to isolate Iran. An oil deal with Iran would be a win-win for both Iran and India. Iran needs cash and a growing Indian economy needs cheap oil. Besides, both countries have common strategic interests in Afghanistan in countering both Pakistan and the Taliban.
Finally, unlike the US, most Asian countries are looking forward to a Modi-led India. Southeast Asian countries have been deeply influenced by India and have long craved its attention. Asian countries are seeking to increase trade ties, boost economic growth and generate employment. India’s trade potential with Asian economies is enormous, and these countries are looking forward to an Indian leader who will look East and put business first.