Page 27 - Echoes of the Global South V2

Figure 4: Regional Footprint of China’s Belt and Road Initiative

Source: Statista
b. India: South-South Cooperation and the Act East Policy
India emphasises South-South cooperation and regional integration as a part of its geoeconomic strategy. While India’s
approach is less capital-intensive than China’s BRI, it is strategically significant, particularly in its focus on building
economic and political ties with neighbouring countries and other developing nations. India has positioned itself as a
leader of the Global South by championing South-South cooperation. Through initiatives like the International Solar
Alliance (ISA) and the India-Africa Forum Summit, India promotes collaboration on sustainable development, energy
security, and capacity building for its Global South partners and the rest of the world. The ISA, for example, aims to
mobilise US$1 trillion in solar investments by 2030, with India playing a central role in facilitating these efforts. 63

India launched the Act East Policy in 2014 to advance its' Neighbourhood First' initiative as a strategic pivot towards
Southeast Asia and the broader Indo-Pacific region. The policy seeks to enhance economic ties, improve connectivity,
and strengthen security cooperation with ASEAN countries. Key projects include the Kaladan Multi-Modal Transit
Transport Project in Myanmar and the India-Myanmar-Thailand Trilateral Highway, which aim to boost regional trade
and connectivity. India has also actively pursued trade agreements with key partners in the Global South, including
64
the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates and negotiations for
a Free Trade Agreement (FTA) with the African Continental Free Trade Area (AfCFTA). 65,66 These agreements are
designed to diversify India’s trade portfolio and reduce dependence on Western markets. Digital and technological
diplomacy is another opportune domain for India to increasingly leverage its strengths in information technology and
digital services as part of its geoeconomic strategy. Initiatives like the Digital India program and the export of low-cost
digital solutions, such as the Unified Payments Interface (UPI), are part of India’s efforts to enhance its influence in the
Global South. 67

63. “The ISA, for example, aims to mobilise US$1 trillion in solar investments by 2030, with India playing a central role in facilitating these efforts”, The Economic
Times, October 21, 2021, https://economictimes.indiatimes.com/industry/renewables/isa-general-assembly-promises-to-achieve-usd-1-trillion-investment-
in-solar-energy-by-2030/articleshow/87190267.cms
64. Roshan Saha and Soumya Bhowmick, “Enhancing Trade and Development in India’s Northeast,” ORF Special Report No. 147, June 2021, Observer
Research Foundation, https://www.orfonline.org/public/uploads/posts/pdf/20240409150842.pdf
65. Comprehensive Economic Partnership Agreement (CEPA) between the Government of the Republic of India and the Government of the United Arab
Emirates (UAE), Ministry of Commerce and Industry, Government of India, https://www.commerce.gov.in/international-trade/trade-agreements/
comprehensive-economic-partnership-agreement-between-the-government-of-the-republic-of-india-and-the-government-of-the-united-arab-emirates-uae/
66. “Trade ties with Africa. India open to FTAs with Africa as a whole or with individual African countries: Goyal”, The Hindu Business Line, June 09, 2023,
https://www.thehindubusinessline.com/economy/india-open-to-ftas-with-africa-as-a-whole-or-with-individual-african-countries-goyal/article66950179.ece
67. Phil Pomford, “The digital dynamo: UPI leads India’s charge into the future”, The Times of India, April 01, 2023, https://timesofindia.indiatimes.com/blogs/
voices/the-digital-dynamo-upi-leads-indias-charge-into-the-future/

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