Friday 16 November 2018

Economic Diplomacy In India

India has engaged in economic diplomacy primarily through the use of trade and aid........ For example, in order to build a stronger, more stable relationship with Bangladesh, India granted it an $800 million soft loan, and provided $200 million in aid.


India set up a development wing in its government in January 2012. The Development Partners Administration (DPA), is a primary way India uses economic diplomacy, in this case development aid, as a way to engage diplomatically. The DPA is building 50,000 housing units in Sri Lanka, a large transmission line in Puli Khumri, Afghanistan, and extends Lines of Credit projects globally, particularly in Africa.


Economic diplomacy and the DPA are very important to Indian foreign policy. As the former Indian Foreign Secretary Lalit Mansingh stated: "The fact that the DPA division is located in the ministry of external affairs shows it is in sync with our foreign policy objectives of transforming India into a global player”.

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