International Relations

Through the implementation and approaches of India’s NFPR recent policies with neighbors have demonstrated connectivity, security, and mutual economic cooperation development. The main initiatives are 1. Infrastructure and Connectivity: India is consistently in the process of upgrading cross-border connectivity and transport links especially with; Nepal, Bhutan, and Bangladesh. This includes rail, and road transport inter-connecting and water ways that lead to regional integration.

2. Economic Partnerships: India has even upgraded the status of the LOCs with the neighbouring countries. Energy, infrastructure and health sectors have been funded through projects. It plays an active role in promoting commerce and business through the regional organization in South Asia including SAARC and BIMSTEC.

3. Security and Counterterrorism: Though India cooperates with the neighbors pays special consideration to all issues- starting from terrorism to the problem of illicit migration and smuggling- with neighbors, especially with Nepal, Myanmar, Bangladesh etc. It’s preferential in border infrastructure development particularly in improving standards of the border facilities.

4. China and Pakistan Relations: With Pakistan, it’s merely superficial over matter of terrorism, but with China we have territorial conflict coupled with harmony.

5. Developmental Aid: During the recent economic crisis situation in Sri Lanka and making relations with Maldives are the indication of that how the India is more https://www.lawctopus.com/academics-in-india-who-is-the-real-mover/shapers-in-determining-final-international-affairs-matters/ concentrated in regional. These will be beneficial in making India into a regional power while promoting good order and prosperity of nations.

All these strategies are directed at creating India as a regional power, and at the same time, to secure the co-prosperity.

Foreign investment is one of the vital factors in the Indian economy and seems to be an input to develop and grow the economy in general. It is quite much required for bringing in the cash flow to the sectors of manufacturing, technology, and infrastructure. FDI is considered the gateway for transferring the technologies, skills, and management systems directly or indirectly leading to productivity improvement and efficiency improvement. There is employment generation followed by skill development in such cases.

Foreign investment increases the foreign exchange reserves in India and later manages stability in the currency with less dependency on external borrowing. Competition leads to better quality products and services for consumers. It also brings into the fold of global supply chains and creates opportunities for export.

Thus, problems arise. One is that too much foreign capital dependency makes the economy susceptible to external shocks. The other is that, in certain sectors showing obvious foreign dominance, questions about national interest and national security may raise their heads. In addition, foreign enterprises’ profit repatriation limits the reinvestment of domestically earned income.

Foreign investment is playing a very important role in keeping the economy of India going, but these investments have to be balanced with perfectly intelligent policies to derive maximum benefits while decreasing any risks involved.

India is combating rising inflation through the channel of monetary, fiscal, and administrative measures:

1. Monetary Policy: To put it bluntly, interested institutions, like RBI, have the burden to use interest rates to influence demand pull inflation. In turn, the RBI increases the repo rates making borrowing expensive and thus pulling down money supply as a way of controlling demand pull inflation. It also employs implements such as open market operations to influence the level of liquidity within an economy.

2. Supply-Side Measures: The government intervening in the availability of the organisations’ products in an aim to fight the inflationary pressure that arises due to interruption of the supply chain,especially when it comes to foods. For instance, it liberates stocks that contain grains, controls exportation and even acts on cases of hoarding with an aim of standardizing the prices of basic products.

3. Import Duty Adjustments: The government can lower deposit on imported goods; such as edible oils, pulses or fuel so that the price of imported goods does not exert inflation pressure on the consumer.

4. Fiscal Policies: In order to mitigate the impact of inflation, government offers subsidies to the basic needs employing products like fertilizer for farmers / food for the public, and welfare schemes including but not limited to supply of free grains to the poor (like in PMGKAY).

5. Energy Price Control: Taxes can be varied or more fundamentally the government can control the price of the inflation index, which is fuel pricing.