Gandhinagar: A robust economy forms the foundation of a strong foreign policy and India must grow faster and increase its share in global trade to gain respect on the world stage, said economist and former NITI Aayog vice-chairman Rajiv Kumar on Wednesday. Economic strength decides a country's position in global politics, he emphasised.
Kumar, currently serving as chairperson of Pahle India Foundation, a not-for-profit policy think tank, was speaking at the Rashtriya Raksha University (RRU) in Gandhinagar. "Economics is the foundation of geopolitics. Our External Affairs Minister S Jaishankar has rightly said that the best foreign policy for India is to strengthen its economy. If you don't grow your economy, you don't have the leverage to talk about anything," he asserted.
Kumar pointed to China, the world's second largest economy, as an example of how economic growth brings global influence. "Today, China is leading in 47 out of 53 frontier technologies. The Chinese are now leading, not the Americans. That is what gives China the ability to stand up to the US," he maintained. Countries which are weak economically are not taken seriously on the global stage, Kumar insisted.
"You may believe and play the games on the table (of diplomacy), but nobody takes you seriously. They will take you seriously only when you are economically strong," he told the gathering which mainly consisted of students. Talking about India's role in the coming years, Kumar affirmed the country must increase its share in the global economy if it wants a bigger voice internationally.
Kumar noted that India's share in global merchandise trade has remained below 2 per cent for the last three decades, a figure he described as inadequate for meaningful global influence. "In the last 30 years, our share in global merchandise trade has been less than 2 per cent. If you can make it 10 per cent, then we will have a role on the global stage. Just 2 per cent (share) doesn't matter," he said, calling it one of India's biggest economic challenges.
In the services sector, India's global share stands at around 4 per cent, he maintained stressing that ambitions for global leadership must be backed by a much stronger economic base. "Let's not attempt to have a big global role unless we make our economy much stronger," Kumar said. Speaking on India-US relations amid global policy transitions under the Donald Trump administration, Kumar advised patience and firmness in safeguarding national interests.
"This time will also pass. The second thing is to stick to your guns for your national interest. India is not a country which can be taken lightly," he opined. He recalled how India weathered international pressure and sanctions following the 1998 nuclear tests conducted under then-Prime Minister Atal Bihari Vajpayee. "There was massive uproar (after the nuclear tests) and sanctions were imposed (on India), but we rode through that," he stated, highlighting India's resilience.
Kumar emphasised the need for pursuing what he termed as "real strategic autonomy", urging India not to depend excessively on any single country. "In this context, it is important to review our own relations with China. Time has come to review that relationship," he said. To achieve true strategic autonomy, Kumar argued, India must empower its private sector, which he described as the "engine of economic growth". "We have to strengthen our private sector and give it all the support it needed, because India can build its economy through the private sector," he added.
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