Foreign Policy of India – success or failure

06/07/2017

How does one assess whether the foreign policy of India in recent years is a success or failure? If we go by the number of Indian VVIPs’ visits abroad or foreign VVIP’s visits to India, India’s foreign policy is a success. But mere visits and signing of agreements do not necessarily mean success or failure. Success of foreign policy also cannot be concluded by the number of international organizations in which the country becomes a member or of which the country is a co-founder. Common approach to or identity of views on international issues also do not mean success of foreign policy. Extending assistance, grants and loans to other countries through various programmes or Eximbank etc also does not mean the foreign policy is a success. Successful foreign policy should lead to expansion of the country’s exports, industrial, technical and scientific cooperation between the countries,spreading of Indian culture, increased arrivals of foreign visitors, creation of interest in foreign countries in India’s history, culture. languages, way of life etc.

Foreign policy should also not be under the control of only the Ministry of External Affairs. The inputs from other Ministries of the union and from the states should also be solicited and considered carefully.

Advertisements

Loans from International Organisations

13/09/2009

There is news that the Government of India is seeking a loan of US$3 billion or Rs.15,000 crores from World Bank for converting about 6,000 kilometers of single-lane national highways into two-lane highways.

For road works foreign exchange is not required too much. If the government wants money in Rupees, it can raise loans in India itself. If it difficult to raise loans from the public, it can borrow from Reserve Bank of India (RBI). If RBI has any difficulty, it can create a special purpose fund by printing currency and lending to the government. The amount can be recouped over a period of time, say 10 or 15 years.

If the government wants some quantum of foreign exchange, it can withdraw from the country’s foreign exchange reserves. These reserves are over $260 billion and have been deposited in foreign government bonds and in foreign banks yielding very low interest.

Thus, there is no need to seek loan from World Bank or any other international organizations.