authors
Peethala Jayanand Kumar

abstract

India’s economic diplomacy has undergone a significant transformation between 2010 and 2024, emerging as a critical pillar of its foreign policy. This article explores the multifaceted strategies employed by India to enhance its global economic influence, focusing on bilateral and multilateral trade agreements, Foreign Direct Investment (FDI) policies, and regional collaborations. Notable initiatives such as the Act East Policy, Make in India, and Neighborhood First Policy have played pivotal roles in driving economic growth, increasing trade volumes, and strengthening connectivity within South Asia and beyond.

The review highlights India’s success in leveraging agreements like the Comprehensive Economic Partnership Agreements (CEPAs) with Japan and South Korea, as well as its cautious approach to the Regional Comprehensive Economic Partnership (RCEP). The role of FDI reforms in attracting over $500 billion in investments is examined, showcasing India’s capability to align domestic priorities with international opportunities. Furthermore, India’s active participation in global forums such as BRICS, G20, and WTO underscores its commitment to shaping equitable global trade policies.

While the outcomes have been largely positive, challenges such as regulatory inefficiencies, infrastructure deficits, and geopolitical tensions persist. This review identifies these limitations and provides actionable recommendations to address them, including strengthening regional connectivity, promoting inclusivity in global engagements, and sustaining FDI reforms. With comprehensive tables, graphs, and insights from 30 authoritative references, the article offers a detailed evaluation of India’s economic diplomacy, highlighting its potential to sustain its influence in an increasingly competitive global environment.