On the Impact of Soft Power on Indian Economy – India’s economic rise

Source: This post on the Impact of Soft Power on Indian Economy is based on the article “India’s economic rise: How to capitalise on the moment” published in Indian Express on 17^th November 2023.

UPSC Syllabus Topic: GS Paper 3 Indian Economy – Growth and development

News: The article discusses India’s impressive economic growth and its increasing influence on the global stage. It highlights the nation’s achievements in various areas, including sports, film industry, diplomacy, and cultural exports, emphasizing the importance of “soft power” in shaping India’s positive impact worldwide.

About India’s economy

India is currently the fastest-growing large economy in the world. This rapid growth trajectory is a testament to its robust economic policies and market dynamics.

The country is on track to become a 5 trillion dollar economy before the end of the decade.

India is moving towards securing the third spot in the global economic pecking order.

India’s aim to become a developed nation by 2047 guides its long-term economic strategy.

What factors are contributing to India’s economic growth?

1. Strong Market Foundations

Large Domestic Market: India’s vast domestic market is essential in driving economic growth.

Sustained Reforms: Continuous improvements in various sectors boost the economy’s efficiency and competitiveness. Recent initiatives comprise the Atmanirbhar Bharat package, the production-linked incentive scheme, the national infrastructure pipeline, and the labor code bills, among others.

Favorable Demographics (Demographic Dividend): A young (1.4 billion people, with more than 40% below the age of 25) and increasing population supports a dynamic workforce and consumer base.

1. India’s Soft Power Contributing-

International Recognition to Yoga: Celebration of International Yoga Day on 21^st June every year, as proposed by the Indian Prime Minister, showcases its cultural heritage globally.

Diversified Sports Sector: The expansion of sports beyond cricket, to include football, kabaddi, and other sports, not only diversifies India’s sports portfolio but also attracts substantial investments and international attention.

Global Film Industry Achievements: The international success of Indian films, exemplified by ‘RRR’ and its Oscar-winning song ‘Naatu Naatu’, highlights the global appeal and cultural influence of India’s film industry.

1. Active International Engagement

Leadership in G20: Under its G20 presidency, India demonstrated its ability to navigate complex geopolitical landscapes, culminating in a joint declaration that underscores its diplomatic acumen.

Involvement in Quad and IPEF: India’s active participation in the Quadrilateral Security Dialogue (Quad) and the Indo-Pacific Economic Forum (IPEF) highlights its commitment to regional security and economic collaboration. These efforts are crucial for maintaining stability and fostering economic growth in the Indo-Pacific region.

‘Lifestyle for the Environment’ (LiFE) Initiative: India’s Prime Minister introduced the LiFE concept at COP26 in Glasgow. This initiative calls for an international mass movement focused on environmental protection, showcasing India’s leadership in addressing climate change.

Voice of the Global South: India champions fair and sustainable solutions globally, particularly in areas like energy security, representing the Global South’s interests.

Terminology used:

Soft power: Soft power is defined as power of attraction between the countries through culture, political ideas, and policies rather than military powers.

Read more on the benefits of Soft Power here.

Question for practice:

Examine how India’s use of soft power contributes to its economic growth and enhances its global influence.