Index

1. Introduction

2. Historical Perspective

3. India's Economic Transformation

4. Military Capabilities and Strategic Importance

5. Scientific, Technological, and Digital Development

6. India’s Diplomatic Influence and Global Role

7. Cultural Diplomacy and Soft Power

8. Socio-Political and Environmental Challenges

9. Vision 2047: India @100

10. Conclusion

11. References & Bibliography

1. Introduction

India, the world’s most populous democracy and a land of rich historical legacy, is increasingly
recognized as an emerging global power. With a rapidly expanding economy, strategic geopolitical
positioning, a robust democratic framework, and active international diplomacy, India is transitioning
from a regional actor to a major player in shaping the 21st-century world order.

Today, India plays a central role in addressing global issues ranging from climate change and digital
security to food security and peacekeeping. This project explores the key dimensions of India's rise as a
new centre of global power.

2. Historical Perspective

Ancient and Medieval Periods:

 India was a major global economic power until the 17th century, contributing over 20% of global
GDP.

 Known for its advanced mathematics (invention of zero), astronomy, medicine (Ayurveda), and
urban planning.

 Cities like Nalanda and Takshashila were ancient hubs of global education.

Colonial Period:

 British colonialism (1858–1947) drained India's wealth and disrupted its socio-economic fabric.
  Post-colonial India faced widespread poverty, partition violence, and low industrial
development.

Post-Independence Developments:

 1947–1991: India adopted a socialist economic model with strong state control.

 1991 Economic Reforms: Liberalization opened the Indian economy to the world, leading to
rapid growth.

 21st century: India positioned itself as a knowledge economy, digital innovator, and diplomatic
leader.

3. India’s Economic Transformation

1. Economic Evolution Since Independence

1947–1991: The Planned Economy

 India adopted a socialist-inspired mixed economy, emphasizing state ownership, centralized

planning, and import substitution.

 The Five-Year Plans, modeled after the Soviet Union, prioritized heavy industry, agriculture,
and infrastructure.

 Despite some industrialization, the economy suffered from low growth—often referred to as
the “Hindu rate of growth” (around 3–4% per year).

 Strict licensing rules and protectionist policies led to economic inefficiencies, limited
competition, and a bureaucratic business climate.

1991: The Economic Liberalization

 Triggered by a balance of payments crisis, India introduced wide-ranging reforms in 1991

under PM P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh.

 Key reforms included:

o Deregulation of industries

o Reduction of import tariffs

o Privatization of state-owned enterprises

o Liberalized FDI policies

 These reforms marked the transition from a closed to an open-market economy, laying the
foundation for modern India's growth trajectory.

2. Sector-Wise Economic Growth

A. Services Sector – The Powerhouse

 Contributes over 55% of India’s GDP.

 India became the global hub for IT and business process outsourcing (BPO) in the 2000s.

 Companies like TCS, Infosys, Wipro serve global clients, boosting foreign exchange and
employment.

 Financial services, insurance, telecom, and e-commerce have seen exponential growth.

B. Industry and Manufacturing

 Traditionally underperforming, but now expanding under Make in India, Production Linked
Incentive (PLI) schemes, and Atmanirbhar Bharat.

 Key industries: Automobiles, steel, cement, pharmaceuticals, consumer electronics, and

defense manufacturing.

 Manufacturing's share in GDP is around 17%, with a target to increase it to 25% by 2030.

C. Agriculture and Rural Economy

 Employs nearly 40% of India’s workforce, though contributes less than 18% to GDP.

 Key focus on:

o Doubling farmers’ income

o Promoting agri-tech startups

o Enhancing irrigation, credit access, and storage

 Use of digital tools, such as eNAM (National Agriculture Market) and PM-KISAN, is
modernizing the sector.

3. Economic Indicators & Rankings (2024 Data)

Indicator Value

GDP (Nominal) $3.9 Trillion (5th in the world)

GDP Growth Rate ~6.5% (2023-2024)

GDP (PPP) $13 Trillion (3rd in the world)

Foreign Exchange Reserves $650 Billion

Inflation ~5%

FDI Inflows (2023) $70 Billion+

Export Value $770 Billion+ (goods & services combined)

Indicator Value

Unemployment Rate ~7-8% (urban higher than rural)

4. Digital and Financial Inclusion

Digital India Mission

 Transformed India into a digitally empowered society.

 Digital payments via UPI (Unified Payments Interface) crossed 10 billion monthly transactions.

 Government services now accessible online: passports, PAN cards, health records (Ayushman
Bharat Digital Mission), etc.

Jan Dhan-Aadhaar-Mobile (JAM) Trinity

 Jan Dhan: Over 500 million bank accounts opened.

 Aadhaar: 99% of adult population enrolled in the world’s largest biometric ID system.

 Mobile connectivity: Affordable internet (world’s lowest data costs) enabled rapid tech
penetration.

5. Infrastructure & Urbanization

 Massive investments in transport, housing, smart cities, and logistics.

 Bharatmala: National highway development project.

 Sagarmala: Port-led development.

 Udaan: Making regional air travel accessible.

 Metro rail projects expanding in over 25 cities.

6. Startup Ecosystem & Innovation

 India is the third-largest startup ecosystem in the world, with:

o Over 110 unicorns (valued at $1B+)

o Startups in fintech, edtech, healthtech, AI, clean energy, and agritech.

 Government programs like Startup India, Fund of Funds, and Digital India Bhashini are
fostering innovation.
7. Foreign Trade and Global Economic Integration

 India has diversified its export base: IT services, pharmaceuticals, textiles, chemicals,
automotive components.

 Trading partners: USA, UAE, China, EU, Bangladesh, Australia.

 Active in bilateral and regional trade agreements like CEPA (UAE), IPEF (US-led), and Indo-
Pacific Economic Framework.

8. Sustainable Development and Green Economy

 Ambitious goals:

o Net-zero carbon emissions by 2070

o 500 GW of renewable energy by 2030

 Rapid adoption of solar, wind, green hydrogen, and EVs (Electric Vehicles).

 International Solar Alliance (ISA) founded by India and France.

9. Social and Human Development Improvements

 Poverty Reduction: Multidimensional poverty rate fell from 55% (2005) to ~16% (2023).

 Literacy: Increased to over 77%, with major gains in female education.

 Healthcare: Schemes like Ayushman Bharat (world’s largest health insurance program) have
improved access.

10. Key Economic Challenges Ahead

 High youth unemployment and jobless growth.

 Need for skilling and reskilling (especially in AI, automation, and green jobs).

 Balancing growth with environmental sustainability.

 Maintaining fiscal discipline and reducing public debt.

4. Military Capabilities and Strategic Importance

Armed Forces:

 Indian Army: Second largest in manpower.

  Navy: Expanding blue-water navy with aircraft carriers (INS Vikrant).

 Air Force: Equipped with indigenous fighter jets (HAL Tejas) and advanced surveillance systems.

 Strategic Forces: Possesses nuclear weapons and delivery systems (Agni, Prithvi, K-4 missiles).

Strategic Alliances:

 QUAD: Alliance with the US, Japan, and Australia for Indo-Pacific security.

 Defense Cooperation: Collaborates with Israel, France, Russia, and the US.

 UN Peacekeeping: One of the largest contributors to UN missions.

Geopolitical Position:

 Shares borders with China and Pakistan, making border defense crucial.

 Controls major sea routes in the Indian Ocean—key for global trade and energy supplies.

Strategic Nuclear Doctrine

 Both India and Pakistan are nuclear powers.

 India follows a “No First Use” (NFU) policy.
 Maintains a credible minimum deterrence posture through a triad:
o Land-based (Agni series)
o Air-based (Su-30, Mirage 2000 with nuclear capability)
o Sea-based (Arihant-class nuclear submarines)
 Strategic Forces Command ensures nuclear command and control under civilian
authority.

Indigenous Defense Capabilities

 India’s focus on self-reliance in defense (Atmanirbhar Bharat) has accelerated.

 Key indigenous systems:
o HAL Tejas (fighter aircraft)
o Arjun MBT (main battle tank)
o BrahMos (world’s fastest supersonic cruise missile, joint venture with Russia)
o Pinaka (multi-barrel rocket launcher)
 Defense corridors in Uttar Pradesh and Tamil Nadu to boost domestic manufacturing.

5. Scientific, Technological, and Digital Development

Space Research:
  ISRO (Indian Space Research Organisation) achievements:

o Chandrayaan-3 (Moon South Pole landing in 2023).

o Mars Orbiter Mission (Mangalyaan).

o Upcoming Gaganyaan human spaceflight mission.

Digital Revolution:

 UPI: Real-time payment system—adopted by multiple countries.

 Aadhaar: World's largest biometric identity project.

 Digital Public Infrastructure (DPI): India's model is being replicated by countries in Africa and
Southeast Asia.

Innovation Ecosystem:

 India ranks in the top 40 of the Global Innovation Index.

 Strength in IT, software exports, biotech, AI, renewable energy, and pharmaceuticals.

 World's largest supplier of generic medicines; known as the "Pharmacy of the World."

6. India’s Diplomatic Influence and Global Role

 🇮🇳 I. Historical Context

 India's diplomacy evolved significantly since its independence in 1947:

 Nehruvian Era (1947–1964): Under Prime Minister Jawaharlal Nehru, India adopted Non-
Alignment, refusing to join either the US or Soviet blocs during the Cold War. Emphasis was on
peaceful coexistence, anti-colonialism, and support for the UN.

 Post-Nehru Period: India’s foreign policy saw shifts, especially after the 1962 war with China and
the 1971 Bangladesh Liberation War, where it aligned more closely with the USSR.

 Post-1991 Liberalization: India adopted a more economically-driven foreign policy, opening up

to the global market, strengthening ties with the West, ASEAN, and the diaspora.

 21st Century: Increasing emphasis on multi-alignment, strategic autonomy, and becoming a

leading power, not just a balancing one.

 🌐 II. Core Principles of Indian Diplomacy

 Strategic Autonomy: India prefers not to enter into permanent military alliances, maintaining
freedom in foreign policy decisions.
 Panchsheel (Five Principles of Peaceful Coexistence): Mutual respect for sovereignty, non-
aggression, non-interference, equality, and peaceful coexistence.

 Non-Alignment 2.0: Modern version focusing on issue-based coalitions rather than ideological
blocs.

 Act East, Neighbourhood First, and Indo-Pacific Visions.

 Vasudhaiva Kutumbakam ("The world is one family") – Civilizational and moral underpinning of
diplomacy.

 📍III. Key Diplomatic Doctrines and Initiatives

 1. Neighbourhood First Policy

 Focus on improving relations with South Asian countries (SAARC members).

 Economic aid, infrastructure, connectivity, and political engagement (e.g., Maldives, Nepal,
Bhutan, Bangladesh, Sri Lanka).

 2. Act East Policy

 Successor to the Look East Policy.

 Enhances economic and strategic relations with ASEAN countries, Japan, and South Korea.

 Focus on Indo-Pacific security and counterbalancing China.

 3. Connect Central Asia Policy

 Energy cooperation, security collaboration, and cultural exchanges.

 Importance of Chabahar Port (Iran) for access to Afghanistan and Central Asia.

 4. Indo-Pacific Strategy

 Advocates a Free, Open, and Inclusive Indo-Pacific.

 Quad (India, USA, Japan, Australia) is a major component.

 Maritime security, infrastructure, supply chains, disaster response.

 5. Strategic Partnerships

 India maintains strategic partnerships with:

 USA: Defense (COMCASA, BECA), trade, diaspora, tech cooperation.

 Russia: Legacy defense partner, energy, and nuclear cooperation.

 European Union: Green energy, trade, counterterrorism.

 France, Japan, Israel: Defense, infrastructure, and technology partnerships.

 6. Energy and Economic Diplomacy

 Securing oil & gas from West Asia, Russia.

 International Solar Alliance (ISA).

 Connectivity projects like INSTC (International North-South Transport Corridor).

 🌍 IV. Multilateral Engagement

 India is an active player in various international organizations:

 United Nations: India seeks a permanent seat in the UNSC, is a significant peacekeeping
contributor.

 G20: Hosted G20 Summit in 2023, focused on Global South, digital public goods, and climate
finance.

 BRICS: Alternative power bloc with Brazil, Russia, China, South Africa.

 SCO (Shanghai Cooperation Organization): Focused on regional security and connectivity.

 QUAD & IPEF (Indo-Pacific Economic Framework): To counterbalance China's assertiveness in

Indo-Pacific.

 🛡️V. Security and Defense Diplomacy

 Defence cooperation agreements with major countries (U.S., France, Australia, Israel).

 Defense exports to Africa and Southeast Asia.

 Maritime cooperation in the Indian Ocean Region.

 Counterterrorism dialogue with global partners.

 📢 VI. Soft Power Diplomacy

 Diaspora Diplomacy: 32+ million Indian-origin people globally; used for strategic influence,
especially in the US, UK, Gulf, and Africa.

 Cultural Diplomacy: Promotion of Yoga (International Yoga Day), Ayurveda, Bollywood, classical
arts.
  Development Diplomacy: Lines of credit, technical training (ITEC), and grants in Africa, Pacific
Islands, and Asia.

 Humanitarian Diplomacy: Vaccine Maitri during COVID-19, disaster relief (Nepal earthquake, Sri
Lanka, Fiji).

 🧭 VII. Challenges in Indian Diplomacy

 China: Border issues (e.g., Galwan clash), trade deficit, influence in South Asia and Indian Ocean.

 Pakistan: Terrorism, Kashmir issue, stalled SAARC cooperation.

 Balancing Great Powers: Navigating US-Russia-China tensions.

 UNSC Reform Resistance: Slow progress despite strong case.

 Energy Security: Oil dependency, especially from West Asia.

 Climate Diplomacy: Balancing development needs with green transition.

 📌 VIII. Future Directions

 Strengthening ties in Africa, Latin America, and Arctic.

 Championing the Global South and reform of global governance institutions.

 Expanding digital and green technology diplomacy.

 Navigating AI, cybersecurity, and space diplomacy.

7. Cultural Diplomacy and Soft Power

Global Influence:

 Bollywood: Films watched across Asia, Middle East, Africa, and the West.

 Yoga & Ayurveda: Practiced globally; International Yoga Day recognized by the UN.

 Indian Cuisine: Popular in all major global cities.

Diaspora Power:

 Indian diaspora (over 30 million) plays key roles in business, politics, and academia globally.

 Prominent leaders of Indian origin: Rishi Sunak (UK PM), Kamala Harris (US VP).
Education & Language:

 Growing interest in learning Hindi, Sanskrit, and Indian philosophy.

 Indian universities collaborating with international institutions for joint programs.

8. Socio-Political and Environmental Challenges

Key Internal Challenges:

 Unemployment: Especially among the youth.

 Education & Healthcare: Requires improvement in rural and underserved regions.

 Social Inequality: Issues of caste, gender disparity, and income inequality.

 Urbanization: Strains on housing, water, and transport infrastructure.

Environmental Issues:

 Severe air and water pollution in major cities.

 Deforestation and climate vulnerability (floods, droughts).

 Need for sustainable agriculture and waste management.

9. Vision 2047: India @100

National Goals:

 India aims to become a developed country by its centenary of independence in 2047.

 Core focus areas:

o Green economy & sustainability.

o Inclusive digital transformation.

o Global leadership in peace, innovation, and climate action.

Aspirations:

 Position as a permanent UN Security Council member.

 Achieve energy independence and net-zero emissions by 2070.

 Enhance quality of life for all citizens through inclusive development.

10. Conclusion
India’s evolution into a new centre of power is not merely a result of economic numbers but a holistic
transformation. Its ability to balance ancient wisdom with modern innovation, preserve democratic
ideals while asserting global influence, and emerge as a leader in sustainability, technology, and
diplomacy makes India a pivotal force in the 21st century.

The coming decades will determine whether India can harness its demographic dividend, overcome
structural challenges, and emerge as a fully developed, influential, and inclusive global power.

11. References & Bibliography

1. Government of India - www.india.gov.in

2. Ministry of External Affairs – https://mea.gov.in

3. World Bank India Data – https://data.worldbank.org/country/india

4. IMF Reports – https://www.imf.org

5. ISRO Official Website – https://www.isro.gov.in

6. The Hindu, Times of India, Indian Express, BBC, Al Jazeera

7. NITI Aayog Policy Papers

8. UN, G20, BRICS, and SCO official communiqués

India’s foreign policy is a dynamic framework aimed at securing national interests while promoting
global peace, cooperation, and development. Rooted in its civilizational values and adapted to modern
geopolitical realities, India’s foreign policy has evolved from non-alignment to a more pragmatic, multi-
aligned, and interest-driven approach.

🇮🇳 I. Foundations of India’s Foreign Policy

India’s foreign policy is guided by constitutional values, historical experience, geopolitical compulsions,
and economic goals. The key guiding principles include:

1. Strategic Autonomy

 India maintains independence in foreign decision-making.

 Avoids formal military alliances (unlike NATO-style commitments).

2. Non-Alignment to Multi-Alignment

 From Cold War-era Non-Aligned Movement (NAM) to engaging with all major powers (USA,
Russia, China, EU, etc.).

 India now seeks issue-based partnerships.

3. Panchsheel Principles (Five Principles of Peaceful Coexistence)

 Mutual respect for sovereignty and territorial integrity

 Non-aggression

 Non-interference in internal affairs

 Equality and mutual benefit

 Peaceful coexistence

4. Vasudhaiva Kutumbakam ("The World is One Family")

 Reflects India's civilizational approach to global harmony.

🌍 II. Key Objectives of India’s Foreign Policy

1. National Security – Safeguarding borders, counterterrorism, maritime security.

2. Economic Growth – Trade, investment, energy security, technology access.

3. Global Standing – Permanent seat in UN Security Council, voice of Global South.

4. Regional Stability – Peaceful, cooperative neighborhood.

5. Diaspora Engagement – Protect and leverage Indian diaspora abroad.

6. Cultural Diplomacy – Promoting soft power via culture, yoga, and heritage.

📌 III. Major Doctrines and Initiatives

1. Neighbourhood First Policy

 Priority to relations with SAARC countries (Bangladesh, Bhutan, Nepal, Maldives, Sri Lanka,
Afghanistan, Pakistan).

 Connectivity, energy, trade, and humanitarian aid focus.

2. Act East Policy

 Enhancing ties with Southeast Asia and East Asia (ASEAN, Japan, South Korea).

 Economic and strategic engagement in Indo-Pacific region.

3. Look West Policy

 Engagement with West Asia (UAE, Saudi Arabia, Iran, Israel).

 Focus on energy, trade, counterterrorism, and diaspora.

4. Indo-Pacific Strategy
  Promoting a Free, Open, and Inclusive Indo-Pacific.

 Active role in QUAD (India, US, Japan, Australia).

5. Connect Central Asia Policy

 Energy, security, and cultural connectivity with Central Asian republics.

🛡️IV. Strategic and Defense Partnerships

India has developed comprehensive strategic partnerships with major powers:

Country Focus

USA Defense tech, counterterrorism, Indo-Pacific, trade

Russia Legacy defense partner, energy, nuclear cooperation

France Defense (Rafale, Scorpène), space, climate

Japan Infrastructure, Indo-Pacific, bullet train

Israel Defense tech, agriculture, cyber security

India also engages in defense diplomacy with agreements like:

 LEMOA, COMCASA, BECA (with the US)

 Military exercises: Malabar, Yudh Abhyas, Varuna, etc.

🏛️V. Multilateral Engagements

India actively participates in global and regional forums:

Organization India’s Role

UN Peacekeeping, UNSC reform advocacy

G20 Economic leadership (hosted 2023 summit)

BRICS Alternative power bloc cooperation

SCO Regional security, Central Asia engagement

QUAD Indo-Pacific strategy

Commonwealth, NAM Historical ties and South-South solidarity

🌿 VI. Soft Power and Development Diplomacy

1. Cultural Diplomacy

 Promotion of Yoga (International Yoga Day), Ayurveda, and Indian culture.

 ICCR (Indian Council for Cultural Relations) activities abroad.

2. Diaspora Diplomacy

 32+ million Indians abroad.

 Vital for economic and political influence.

 Support through OCI, Pravasi Bharatiya Divas.

3. Development Aid

 Africa, Southeast Asia, Pacific Islands, and SAARC.

 Lines of credit, infrastructure, capacity building (ITEC).

4. Vaccine & Humanitarian Diplomacy

 Vaccine Maitri during COVID-19 pandemic.

 Disaster relief missions (e.g., Nepal, Sri Lanka).

⚠️VII. Challenges in India’s Foreign Policy

1. China – Border disputes (LAC), economic rivalry, maritime presence.

2. Pakistan – Terrorism, stalled dialogue, Kashmir issue.

3. Energy Security – Volatility in oil markets, especially from West Asia.

4. Balancing Global Powers – Managing ties with both US and Russia.

5. UNSC Reforms – Stagnation despite wide support.

6. South Asia Instability – Political crises in Sri Lanka, Nepal, Maldives.

🚀 VIII. Emerging Trends and Future Outlook

 Digital and Tech Diplomacy – AI, cyber security, semiconductor partnerships.

 Climate Diplomacy – Leadership in International Solar Alliance (ISA), green finance.

 Africa Outreach – Development, trade, security cooperation.

 Global South Leadership – Promoting equitable global governance.

 Maritime Security – Indian Ocean Region focus via SAGAR (Security and Growth for All in the
Region).
✅ Summary

India’s foreign policy today is defined by pragmatism, multi-alignment, and a strong desire to be a
leading power that shapes global rules rather than just following them. It balances its traditionprinciples
with modern strategic needs to secure its interests in an increasingly multipolar and turbulent world.