Modi looks inward on trade
The Indian government has taken a protectionist posture on trade, taking measures to boost domestic manufacturing, hike tariffs and stall trade negotiations. Yet exports have failed to increase, in part because of red tape and poor logistics. The administration’s present attitude could see India struggle with the current account deficit and increasingly get shut out from overseas markets, unless a growing corporate sector can lobby for change.
The burgeoning India-Japan partnership
Japan and India are fast becoming close partners. Small wonder: the two countries both want to counteract China's rise, especially in the Indian Ocean. The countries have strengthened economic and military ties, and together could challenge China at sea. As Beijing attempts to project its power ever further, the Indo-Japanese partnership will only grow.
Modi’s economy faces the voters
The Modi government in India enters the last year of its term with mixed economic results. The prime minister has moderated inflation and carried out important reforms, but growth remains slow and many Indians are pessimistic about their financial situation. With elections coming next April and several external threats on the horizon, a second term for Narendra Modi is in doubt.
Sino-Indian relations after the Wuhan summit
In late April, Chinese President Xi Jinping and Indian Prime Minister Narendra Modi held an “informal summit” during which they reached a tacit understanding to turn down the heat on their countries’ contentious relationship. Both leaders have many more urgent issues on their plates, and need room to maneuver. But without any concrete steps taken to solve the Asian giants’ big disagreements, renewed confrontation is only a matter of time.
India’s growing influence in the Middle East
India has recently elevated its relationships with the United Arab Emirates, Israel and Iran, increasing its influence in the Middle East. But New Delhi has always preferred keeping the explosive region at arm’s length by dealing with only a few bilateral relationships. The Middle East’s shifting dynamics may make that strategy very difficult to maintain.
Can India bank on its banks?
As the ratio of nonperforming assets in India’s banking sector rises, there have been loud calls for reform. The condition of loan portfolios at state-controlled banks is now so parlous that it is choking off the availability of new credit and forcing the government into ever more ambitious recapitalization schemes. But for all the smoke and noise, substantive change has been elusive.
A free and open Indo-Pacific: Regional and global implications
One of the techniques devised for managing China’s ascent and its destabilizing impact is the concept of a “free and open Indo-Pacific.” This idea, embraced by the governments of Japan, India and the United States, includes military, economic, political, legal and diplomatic dimensions. Some argue it is a smoke screen to mask U.S. disengagement, while others maintain it is a Japanese-inspired effort to enlist American help.