India’s ties with South Korea, Japan and Taiwan which have grown in recent years have become even more important in the current geopolitical and economic situation in the Indo-Pacific.
Author
Tridivesh Singh Maini, Assistant Professor-Diplomatic Practice, Jindal School of International Affairs, O.P. Jindal Global University, Sonipat, Haryana, India.
Summary
Interactions between India’s state governments and other countries – especially in the economic domain – have witnessed an acceleration in the past two decades for several reasons – economic, political and geopolitical (this, phenomena is referred to as para-diplomacy). The focus of India’s state governments has been on drawing greater Foreign Direct Investment (FDI) and several methods – including high level delegations going overseas for roadshows and Annual Investors Summits held in state capitals — have been used for the same. Several state governments have also been seeking to benefit from the Free Trade Agreements (FTA’s) India has signed with other countries.
While several state governments have been focusing on drawing FDI, in specific sectors, from western countries – especially the US — they have also been seeking to strengthen linkages in recent years with Gulf Nations like UAE and East Asian nations – Japan and South Korea. In August 2024, the Telangana CM, Revanth Reddy visited US and South Korea, while the Rajasthan CM, Bhajan Lal Sharma visited South Korea and Japan (September 2024). It would be pertinent to point out, that both Japan and South Korea have been important focus countries of India ever since the ‘Look East’ – renamed the ‘Act East Policy’ – by the current dispensation was framed (the scope and geographical focus of the Act East Policy is broader given the economic and geopolitical changes which have taken place in recent decades).
Taiwanese electronic giant, Foxconn Chairman Young Liu, also visited three South Indian states – Tamil Nadu, Andhra Pradesh and Telangana – and met with their Chief Ministers. The possibility of expansion of Foxconn’s operations in India – and in the above states was discussed during the meetings.
Importance of outreach vis-à-vis East Asia
The outreach towards East Asia is especially important for several reasons. After India introduced the Look East Policy, countries like Japan and South Korea were amongst the first focus countries, as discussed earlier and the first to respond – via FDI and other economic linkages — to the 1991 economic reforms, as well as re-orientation of India’s foreign policy. Since then, cooperation with both countries has increased manifold. In 2023-2024, trade between India and Japan was well over $22 billion, while trade between India and South Korea stand at over $27 billion. India and South Korea also discussed the possibility of upgrading the Free Trade Agreement (FTA) earlier this month.
Published in: Modern Diplomacy
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