Prime Minister Narendra Modi's long trip to a series of important multilateral meetings - with some bilateral summitsthrown in along the way - is drawing to a close. As with his previous trips, Mr Modi has certainly made an impression, including in the media; it seems he has been able to convey a palpable sense of possibility to India's foreign partners, a sense that was missing for the last few years of the previous government. However, as before, in terms of concrete deliverables it is not fully clear what has been achieved. Moving India's position forward in the multilateral arena is certainly something for the long haul, and real results are unlikely to manifest themselves in the short run. However, this was a major test for Mr Modi in terms of forging relationships with the men and women he will be working with during his time in office - the degree to which he has succeeded will only be learned in time. Of course, as always, he managed to conclusively show - this time in Australia - the power of the Indian diaspora. This will have correspondingly raised India's profile.
One major step forward is that Mr Modi has managed to, while expertly preserving Indian pride, rescue its position at the World Trade Organization by coming to an agreement with the United States. Another major deal that was in India's interest but that it had shied away from signing was the Organisation for Economic Co-operation and Development's financial information-sharing pact. Over 50 countries had signed it in Berlin at the last minute, but India ducked out of doing so; reportedly that impasse, too, has now been overcome, and the G20has also endorsed these financial reporting standards. Meanwhile, thanks to recent leaked information on hundreds of special sweetheart tax deals given to big companies by Luxembourg - now being investigated by several European countries and by the European Union - a specific clause on action against such deals was included in the G20 communique. These may not be the product of specific Indian action or pressure from Mr Modi, but clearly do reflect Indian interests. The G20 has long held a strong view on curbing the tax haven menace, which dovetails well with the domestic Indian political narrative around eliminating black money.
At the Association of Southeast Asian Nations (Asean)-India and the East Asia summits, Mr Modi will have done his best to reassure partners of a continuing Indian interest in the Pacific Rim and the South China Sea. Security concerns, as well as the need for enhancing logistical connections, will have predominated, in the shadow of ever-increasing Chinese power. However, two contemporaneous events will have shown how far ahead of India China is in integrating itself into the multilateral system, and using summits to its advantage. The first was its series of deals with the United States, on intellectual property rights but also - crucially - on climate change. The second was the announcement of a major free-trade deal, a decade in the making, between China and Australia. India is still struggling with ambivalence towards trade deals; the Chinese are marching ahead, and coming to deals even with long-standing strategic partners of India, such as Australia.
One major step forward is that Mr Modi has managed to, while expertly preserving Indian pride, rescue its position at the World Trade Organization by coming to an agreement with the United States. Another major deal that was in India's interest but that it had shied away from signing was the Organisation for Economic Co-operation and Development's financial information-sharing pact. Over 50 countries had signed it in Berlin at the last minute, but India ducked out of doing so; reportedly that impasse, too, has now been overcome, and the G20has also endorsed these financial reporting standards. Meanwhile, thanks to recent leaked information on hundreds of special sweetheart tax deals given to big companies by Luxembourg - now being investigated by several European countries and by the European Union - a specific clause on action against such deals was included in the G20 communique. These may not be the product of specific Indian action or pressure from Mr Modi, but clearly do reflect Indian interests. The G20 has long held a strong view on curbing the tax haven menace, which dovetails well with the domestic Indian political narrative around eliminating black money.
At the Association of Southeast Asian Nations (Asean)-India and the East Asia summits, Mr Modi will have done his best to reassure partners of a continuing Indian interest in the Pacific Rim and the South China Sea. Security concerns, as well as the need for enhancing logistical connections, will have predominated, in the shadow of ever-increasing Chinese power. However, two contemporaneous events will have shown how far ahead of India China is in integrating itself into the multilateral system, and using summits to its advantage. The first was its series of deals with the United States, on intellectual property rights but also - crucially - on climate change. The second was the announcement of a major free-trade deal, a decade in the making, between China and Australia. India is still struggling with ambivalence towards trade deals; the Chinese are marching ahead, and coming to deals even with long-standing strategic partners of India, such as Australia.
No comments:
Post a Comment