India’s Economic Diplomacy in the 21st Century

Economic diplomacy is the use of government recourses to promote the growth of a country's economy by increasing trade, promoting investments, collaboration on bilateral and multilateral trade agreements, etc.

Challenges to Economic Diplomacy

• Compartmentalized bureaucratic structures within ministries prevent coordinated actions.
• Capacity constraints affect integration of economic and strategic goals.
• Inflexibility during trade negotiations affects economic interests.
• Lack of engagement between government and businesses.
• A rapidly rising development assistance program inadequately implemented and leveraged.
• Lack of dispute settlement mechanisms and rigid tax regimes.
• Worsening balance of payments deficit despite growing trade volume.
• Continued weak engagement with the Indian diaspora.

Capacity-building across Government Institutions and Business ....