India's Economic Development and Foreign Research Paper

Pages: 8 (2436 words)  ·  Bibliography Sources: 10  ·  File: .docx  ·  Level: College Junior  ·  Topic: History - Asian

Hypothesis 2: Changes have occurred in the foreign policy of India and these have been generated by the development of economy.

As it has already been proven, changes have indeed occurred in India's approach of its foreign relationships and policy and the cause for these changes has commonly been represented by changes in the international setting, such as globalization or the changing roles of different global powers (the Soviet Union vs. The United States). While these macroeconomic movements have been the sources of policy changes, a question remains of whether the very economic development of India has represented a cause of policy changes in the country's foreign relationships.

Directly linked to the fall of the Soviet Union, India changed its economic strategy and made it more opened to the Western Hemisphere. The Indian economy had been secondary in the national interest and this had caused it to become less competitive than other economies in the region, namely China. This realization and the new needs of the Indian economy then reshaped the foreign policy, which became more economy-oriented (Mohan, 2006). In other words, the country sought to promote its economic interests at the global level and to develop strategic partnerships that supported its economic goals.

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Gradually, the more interest placed on economy oriented foreign policy helped India to develop more fruitful relationships with its regional rivals, such as Pakistan and China. In other words, the "reforms unleashed the potential of the nation, generated rapid economic growth and provided a basis to transform its relations with great powers" (Mohan, 2006).

More recently, the country's economic growth has revealed an increased economic potential, which can only be capitalized upon if India continues to open up its international relations with other countries (Ganguly, 2012). In this setting, the second hypothesis of the economic influence in the changes in India's foreign policy is validated.

Research Paper on India's Economic Development & Foreign Assignment

Hypothesis 3: Changes have occurred in the international relations of India but these have been generated by elements other than the economic growth of the country.

The past two decades have witnessed some notable changes at the level of India's foreign policy and these have resulted from various and complex movements in both the national and the international community. For instance, the world had been impacted by the end of the Cold War, which detensified international relationships. Additionally, with the fall of the Soviet Union and its decreasing influence in Asia, India found itself more exposed to globalization. In such a setting, it was forced to reshape its international relations policy.

"Much as the ascent of Deng Xiaoping in the late 1970s produced radical changes in Chinese foreign policy, India's relations with the world have seen a fundamental transformation over the last decade and a half. A number of factors were at work in India. The old political and economic order at home had collapsed and externally the end of the Cold War removed all the old benchmarks that guided India's foreign policy. Many of the core beliefs of the old system had to be discarded and consensus generated on new ones. The collapse of the Soviet Union and the new wave of economic globalization left India scrambling to find new anchors for its conduct of external relations" (Mohan, 2006).

In this context then, it is concluded that there existed several factors that led to the changes in India's foreign policy throughout the past two decades. These factors were of both economic nature, as well as other nature. Mohan pointed out the external forces that generated change in India's foreign policy. In this setting then, the third and final hypothesis of the liberal theory of international relations is validated.

5. Conclusions

India is currently one of the leading economic powers of the globe. The country is following a continually ascendant path, despite the ongoing existence of numerous internal problems, such as corruption, weak infrastructure or high poverty rates.

At the level of its foreign policy, the roots of the principles are set in the 1940s decade, when the country gained its independence. Since then however, the approach to international relations has suffered some modifications, and these were generally due to the changes in the macro economy. From the internal level, the development of the economy also represented a source of change for the foreign policies of the country as the economic advent required political support. This trend is expected to maintain in the future due to the high economic potential of India.


Ganguly, S. (2012). Think again: India's rise. Foreign Policy. accessed on November 2, 2012

Jayapalan, N. (2001). Foreign policy of India. Atlantic Publishers 7 Dist.

Lamba, D. (2006). Indian foreign policy. Digvijay and Ridhima's blog. / accessed on November 2, 2012

Mohan, C.R. (2006). India's new foreign policy strategy. accessed on November 2, 2012

Moravcsik, A. Liberalism and international relations theory. Princeton University.[[?]????X???K?X??[?W????[?˜?X????Y???[X?? K ? L????[?K??

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"India's Economic Development and Foreign."  2 November 2012.  Web.  30 May 2020. <>.

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"India's Economic Development and Foreign."  November 2, 2012.  Accessed May 30, 2020.