How do geopolitical relationships affect India’s development?
In recent times India has taken a number of steps to improve its international relations with its neighbours. An example of this is India joining The Association of Southeast Asian Nations (ASEAN) a regional intergovernmental organisation comprising ten countries in Southeast Asia. ASEAN promotes intergovernmental cooperation and facilitates economic, political, security, military, educational, and sociocultural integration among its members and other countries in Asia.
India has also developed the Act East policy to increase its influence over ASEAN countries and provides security in the region. This has promoted India’s global influence and increased trade opportunities making foreign companies more likely to invest in the country, introducing new technology and providing jobs.
India is in the process of reducing its reliance on imports for defence equipment through developing a defence production industry that will focus on artificial intelligence and cybersecurity. This could potentially create 3 million jobs. India currently has the world’s third-largest military budget which has an impact on development. The graph below shows India’s increasing military budget spend.
In the past India had close military ties with Russia. This affected economic policies, including the lack of private investment. More recently India has aligned itself with the USA, having recently completed a deal which allows the mutual use of military bases. Trade has increased since its recent change in the military pact, leading to further development.
There are territorial disputes between India, China and Pakistan over land that borders the country. India has developed close relationships with other countries in the region in order to secure support should conflict breakout.