Will India factor benefit other countries?

sundarkambam answered 2 years ago …

The following is the excerpts from an article :

Despite some successes, India’s economic engagement with its neighbours continues to be crippled by deep-rooted political tensions. Trade agreements, whether bilateral or regional, do not seem to have had any positive influence yet in reducing conflict in South Asia. Growth in the $854 billion economy is being spurred by a variety of factors, including higher savings rate, spending on roads, ports and other infrastructure and more foreign direct investment
(FDI), according to global investment firm Morgan Stanley.

The biggest challenge to India’s economic growth and dominance remains the reality of the ‘other’ India: over 300 million Indians still live in abject poverty, and another 300 million hover precariously above the poverty line.
Poverty is most stark among rural constituents, in districts dependent on rain-fed agriculture, with poor connectivity, and among members of traditionally excluded groups. For several Indian intellectuals, ‘while the growth graphs may be right, there are still two Indian economies, the fast-growing globalized sector and the rest, rural, retarded and ridden with poverty’. Interestingly, in its relationship with the rest of its neighbourhood, India
seeks not to see the commonalities of shared poverty and socio-economic marginalization but instead defines the relationship from the perspective of a bigger, more prosperous neighbour.

Its position within the region and relationships with its immediate neighbours, for instance, will depend to some degree on how it manages to disentangle itself from its own internal issues of social unrest arising from exclusion and uneven development.

The US needs India as an Asian power to influence the design of the emerging Asian strategic architecture in such a way that vital US interests are not affected. The US is already India’s leading commercial partner and its principal customer for goods and services .

For a detailed discussion see the link http://www.chathamhouse.org.uk/publications/papers/download/-/id/564/file/10714_r1107india.pdf.