India as a global power?

India is a potential world power.

India’s stable democratic political system,huge middle-class population, immense military clout in South Asia, risingeconomic fortunes and global ambitions make it a potential power that could playa very important role in world affairs.But it still must address numerous challenges. In order to become aneconomic powerhouse, India must tackle several structural issues, such as reiningin the runaway fiscal deficit, freeing its manufacturing sector from antiquatedlabour laws, selling state-owned assets and using the freed-up cash for investmentsin physical infrastructure.

India’s relations with Pakistan, the US and China will be crucial.

Peaceand stability will be critical in attracting and keeping foreign investment. If Indiafollows a pragmatic foreign policy and lets its economic priorities dictate foreignpolicies, it will reap the dividends of peace.

India’s policies embody a blend of pragmatism and nationalism, andits goals include both close relations with the US and recognition as one of theleaders in a more multipolar world. India’s economic growth and ability to manageits key diplomatic relationships will determine the size of the international role itcrafts over the next fifteen years. Its leaders’ skill in balancing the competingobjectives of its foreign policy will help shape the direction taken by both Indiaand the world.