India's robust economic growth has its strategic importance for the world, but there is a "less-discussed impact" that country's economy has too. Find out what it is!
India’s robust economic growth has its strategic importance for the world — from increasing domestic spending in defence funds to providing a capital base, but there is a “less-discussed impact” that country’s economy has too, and that is to build stability in the global capital market, a US expert says.
As China has created “a sort of economic gravity” to gain strategic influence over the foreign capital, Richard M Rossow, US-India expert at Center for Strategic and International Studies says that “the world needs India’s positive economic gravity to help ‘remerge’ economic opportunity and values.”
“There is a deeper game that India must play by continuing its process of economic liberalization: building a powerful business constituency in global capitals that will press for stability, while not having to step away from modern values,” Richard M Rossow writes in a report titled ‘The Strategic Importance of India’s Rise’.
He says that China has strengthened its influence in foreign capitals and compelling firms from the United States and other countries to warp principles in favor of returns. He writes that China has been a “critical juncture” of global supply chains and an increasingly important market for global services firm; however, he advocates that India could become an alternative to the economic gravity in Asia.
Richard M Rossow warns against efforts that are “advocating against India”, saying that they could threaten the growing US-India security partnership — whether it is the review of India’s benefits under the Generalized System of Preferences (GSP), WTO challenge to India’s export subsidy programs, or putting the country under the currency manipulator watchlist. He argues that India can help ‘remerge’ economic opportunity and values, which has seen “value distortion field” created by China.