India's stature as a strong and influential nation on the global stage has grown markedly in the last 10 years.
In an interview with NDTV, External Affairs Minister S Jaishankar said India's G20 presidency has been unique and special in a world that is far more complicated because of a once-in-a-century pandemic and an ongoing conflict.
"In such a situation, who can step forward and find a middle ground? There are east-west and north-south divides. Who can bridge this? The country should not be neutral, but command respect and have something to show to the world. That is India," said the Foreign Minister.
India has emerged as a trustworthy and dependable leader of the countries of the Global South and has also displayed its collaborative spirit by reaching out to 125 countries to co-create the G20 agenda during its presidency. A two-day virtual meet of the Global South countries was organised in January. India initiated the idea of granting permanent status to the African Union to become a member of the G20.
A lot was expected from China, which has been claiming to advocate the cause of the Global South but in reality, has been acting in strange ways through policies like the BRI (Belt and Road Initiative) and the notorious "debt trap" for nations seeking funds. Over two dozen countries in Asia and Africa are victims of China's bullying. As part of BRI, there are many cases of countries losing possession of assets like Hambantota port in Sri Lanka, Mombasa port in Kenya, several areas in Pakistan, Tajikistan, and Kyrgyzstan. The Chinese image has taken a beating," says Srikanth Kondapalli, Dean, School of International Studies, JNU.
India has been resolutely championing the cause of Global South, as much as its own problems. The Foreign Minister explained the spirit of the Global South as countries who, with their limited resources, will do for other countries what they will do to solve their own problems. Citing it as a family unit, he placed India in that category. India's success with the Chandrayaan has been celebrated the world over and many nations in the Global South have basked in the reflected glory of this achievement, which is an example of this familial spirit.
In its presidency year, India highlighted and made concerted efforts to address economic challenges like the crippling food and energy crisis due to the ongoing Ukraine war. The export of wheat, hampered due to the ongoing war, has aggravated the food crisis in many countries. Prime Minister Narendra Modi, as a solution, propounded the merits of millets - the healthy, green and better substitute of wheat.
Developed countries have tasted China's economic coercion in the form of trade embargoes and sanctions. After Australia last year called for an international investigation into the outbreak of the COVID-19 pandemic, Beijing responded with a barrage of tariffs and restrictions on its exports. The world has seen the fragility of global supply chains during Covid and the Russia-Ukraine war. The pandemic and post-pandemic disruptions to the supply chain have diminished China's appeal. To reduce their strategic vulnerabilities, foreign investors are looking for alternative destinations to shift their manufacturing locations.
The Foreign Minister says India can fill the gap as he feels manufacturing is over-concentrated in China and a situation like a pandemic can disrupt economies. "India has an advantage as its quality of soft power is better than China. Indeed, in the post-Covid scenario followed by China's belligerent foreign policy, the world wants to manufacture in India. India now has the opportunity to pitch itself as the next factory-of-the world. Unlike many competitors, India has the capacity, skills, low production costs and the scalability to make-in-India for the world," says Atul Aneja, editor-India Narrative, formerly China correspondent (The Hindu).
India, riding on its advancement in technology (even the West benefits from India's strong digital talent), high demographic dividend, and large consumer market, is perceived as the counterweight to China. The western world also has been trying to counter China by manifesting a tilt towards India. "It means that the world is not decoupling but de-risking from China, by forging alternative supply chains and manufacturing. India is well-poised to benefit from this post-Covid global strategy," says Mr Aneja.
India has a huge domestic market of 1.4 billion people, and an expanding middle class with growing purchasing power. In the last 10 years, India has progressed considerably. We have a large pool of skilled and educated people who are employable across sectors, from technology, manufacturing to healthcare, services and heavy engineering. Indian has a thriving entrepreneurial ecosystem with a mix of start-ups and established companies across various industries. These start-ups predominantly serve global clients, underscoring that the nation is no longer viewed solely as a hug for (low-cost) labour arbitrage, but as a pivotal destination for value-addition in the life cycle of global corporations.
Even our young population of below 35 will continue to yield demographic dividends to our advantage, unlike China, which will soon be short of a young, employable workforce. Mr Jaishankar's comment on the strong link between jobs creation, infrastructure growth and ensuring private capital from abroad can easily access manufacturing opportunities in the domestic market, stands true in this context.
A WEF (World Economic Forum) report states that one of the countries most likely to benefit in South Asia is India because it attracted among the highest FDIs at $83.6 billion in the financial year 2021-22. In terms of market and cost effectiveness, India is as lucrative as the US or China.
India is on the verge of emerging as a market leader in specific sectors, notably in the critical domain of renewable energy, in which the country is poised to become the largest solar energy producer in the world. Green transportation, and green mobility were the other areas of focus for India, as Mr Jaishankar said. To lessen the country's dependence on China, the government has cleared a 10-billion-dollar package to boost the semiconductor industry.
However, India is grappling with major challenges. Ease of doing business, eliminating red tape, labour law reforms, objective tax regime, better infrastructure to cater to supply chains, and global work and living standards, are areas needing urgent attention. "India has two main problems - one is massive red tape and corruption, and two, poor quality skills of labour. Surely, India will attract investment more to cater to the domestic market than become a manufacturing hub for exports as China did for nearly four decades. So, despite all the hype, one should be realistic. That Japan, India's Special Strategic Partner, has been investing more in Vietnam than in India, gives an idea about what's happening," says GVC Naidu, former founder chairperson, Centre for Indo-Pacific Studies, JNU.
The world is keen to support a strong democracy as a viable business alternative. The West is experiencing what is to be on the receiving end of China's bullying behaviour. India must not waste this opportunity. It's a large country with transparent and strong democratic institutions. India should not be seen as China Plus One, as Mr Jaishankar says. Definitely not, when its growth has been cushioned by domestic consumption despite the global slowdown.
(Bharti Mishra Nath is a senior journalist)
Disclaimer: These are the personal opinions of the author.