India’s Perception and Policy Preference of Global Economic Governance

Yang Wenwu is Research Fellow at the Institute of South Asian Studies, Sichuan University; Li Siqi is a PhD candidate at the School of International Relations, Sichuan University.

As the world economy evolves at unprecedented speed, it is clear that the present global economic governance system has failed to keep up.The developing countries will inevitably take on more responsibilities and obligations to build a fairer and more equitable global economic governance system reflecting their growing economic clout.As a rising developing powerhouse, India’s participation in global economic governance to maximize its economic benefits will likely make itself one of the important drivers in reforming the global economic governance system.As the reform enters a critical stage, it is important to explore India’s perception of global economic governance and grasp its policy implications for China in its desire to communicate and cooperate better with India.The two countries can work together to promote reforms and improve developing countries’voices in dealing with complex global economic governance issues.

India’s Perception of Global Economic Governance

Since the 2008 financial crisis, many anti-globalization events have immobilized the proper functioning of the current global economic governance system.Moreover, the COVID-19 pandemic, the Ukraine crisis and other events have further impacted the global economic order, posing challenges to the necessary reforms to the beneficial development of the global economic governance system.India has noted the deficiencies of the global economic governance system dominated by developed countries.It has developed its perception of the global economic governance system and presented its views.

The West dominates traditional governance institutions, while emerging countries’governance presence is weak

The main body of global economic governance is a sovereign state or supranational international organization that enjoys influence across many countries.Western powers dominated the traditional global economic governance system.The Bretton Woods institutions (International Monetary Fund and World Bank) and the World Trade Organization (WTO) are the traditional supranational global economic governance bodies.India’s self-perceived identity as a dominant player or even an important participant in traditional global economic governance is not recognized.It has a trust deficit in the traditional global economic governance system.As India became one of the first members of the IMF in 1945 and a member of the General Agreement on Tariffs and Trade(GATT) in 1948, it believes that its status as one of the founders of international organizations should bring it excellent experience and influence of global economic governance.But in fact,“the Bretton Woods institutions are designed under Western market orientation on both the structure and the mandate”and“they are loyal to a very limited number of countries, among which only the United States has the veto power over all major decision.Especially, the IMF has become“a powerful arm of the US global policy.”1Ajit Muricken,“India and the Bretton Woods Institutions,”Committee for the Abolition of Illegitimate Debt, March 10, 2005, http://cadtm.org/India-and-the-Bretton-Wood.

Accordingly, India feels that developing countries, including itself,are grossly under-represented in traditional global economic governance.Nirmala Sitharaman, India’s finance minister, argues that international organizations now“no longer represent countries that have been ignored for decades”and“the‘North-South dialogue’seems to be becoming irrelevant.”2“UN, World Bank, IMF in Need of Urgent Reforms: Finance Minister Nirmala Sitharaman,”The Economic Times, October 13, 2021, https://economictimes.indiatimes.com/news/economy/policy/un-worldbank-imf-in-need-of-urgent-reforms-finance-minister-nirmala-sitharaman/articleshow/86985302.cms.One concrete manifestation is that the number of staff representing developing countries such as India in the WTO stagnates.3“Staff Representation of India in WTO Secretariat Stagnant in Past 25 Years,”The Economic Times,October 25, 2020, https://economictimes.indiatimes.com/news/economy/policy/staff-representation-ofindia-in-wto-secretariat-stagnant-in-past-25-years/articleshow/78855922.cms?from=mdr.This“neglect”also shows in India’s relations with the G7 (or G8).India sees its participation in the G7 (or G8) summit as“an opportunity to expand relations with the West.”4Shubhajit Roy,“Explained: The G-7 Agenda This Year, and What Is in It for India,”The Indian Express, June 17, 2021, https://indianexpress.com/article/explained/explained-the-g-7-agenda-this-yearindia-7353336/.Therefore, since it was first invited to the informal G8 summit in 2003, India has repeatedly expressed its support to the G7(or G8), hoping to take the opportunity present at the G7 forum to express its strategic demands in global economic governance and increase its voice.Modi said at the G7 outreach session in 2021 that India is a“natural ally”of G7 countries.5Suhasini Haidar,“Fight against Authoritarianism, Extremism, Says PM Modi at G7 Meet,”The Hindu,November 18, 2021, https://www.thehindu.com/news/national/india-a-natural-ally-of-g7-narendra-modi/article34805604.ece.However, to this day, India is still not invited to join G7.

The exclusion from G7 means that India is denied the role in global economic governance that it believes it deserves for historical reasons; it was also prevented from forging the economic and strategic links it deserves for its proximity to traditional western value alliances.The G7 disappointment hurt the objective of India in promoting its economic interest when engaging in global economic governance and caused a crisis of trust in the traditional global economic governance system.

India sees the emergence of new bodies in global economic governance as a way to serve its economic interest better.The emerging G20 and BRICS global economic governance bodies stem from the trust crisis among developing countries in the global economic governance system.These two institutions played important roles in taking on the global and regional financial crisis.Therefore, India actively becomes an important member of these emerging global economic governance bodies out of economic selfinterest.India had hoped for the new bodies to replace the traditional ones in global economic governance so that it could better participate in and even lead the global economic governance system.India’s prime minister,Manmohan Singh, said at the G20 summit in 2008 that“the summit has demonstrated that the balance of (international) power is increasingly shifting in favour of emerging economies.”6Gautam Chikermane,“Transcript of PM’s Press Meet,”Hindustan Times, November 16, 2008, https://www.hindustantimes.com/india/transcript-of-pm-s-press-meet/story-4fnWW6Vi0ibSO80yhoemPN.html.On the BRICS mechanism,Singh said it could“contribute to the reform of the global governance structure.”7“BRIC Must Create a New World Order: Lula,”Indian Express, April 16, 2010, https://indianexpress.com/article/india/latest-news/bric-must-create-a-new-world-order-lula/.Modi agreed that the BRICS mechanism is“an influential voice for the world’s emerging economies, a platform that helps focus on the priorities of developing countries.”8Anindita Sanyal,“BRICS Influential Voice for Emerging Economies: PM Modi At Summit,”NDTV,September 9, 2021, https://www.ndtv.com/india-news/brics-influential-voice-for-emerging-economies-pmmodi-at-summit-2535452.

India hopes to enhance its voice and influence in the global economic governance system based on the G20 and BRICS mechanisms.However,it believes that the emerging global economic governance players are not strong enough and still need to make efforts to develop.For example,Modi said at the 13th BRICS Summit in September 2021,“We must not be too complacent and must ensure that BRICS countries become more results-oriented over the next 15 years.”9“PM’s Opening Remarks at 13th BRICS Summit,”PMINDIA, September 9, 2021, https://www.pmindia.gov.in/en/news_updates/pms-opening-remarks-at-13th-brics-summit/.Jitendra Singh, India’s science and technology minister, further noted that“efforts need to be made to give BRICS a place in the global innovation index.”10Government of India,“India Calls for BRICS to Work towards Rightful Place in the Global Innovation Index,”November 29, 2021, https://dst.gov.in/india-calls-brics-work-towards-rightful-place-globalinnovation-index.

Global economic problems emerge one after another, and the global economic governance system is in deep trouble

Global economic governance refers to the set of institutional arrangements and international agreements addressing global economic issues that need to be resolved, generally including global currency, trade,value chain and regulation.India sees itself as a victim of the traditional global monetary system, and a series of currency problems have led it to push forward the“de-dollarisation”process.The Rupee experienced a sharp depreciation in 2008, which India attributed to the transmission of the financial crisis in a highly integrated world.11Arvind Subramanian,“Self-insurance -The Debate India Must Have,”Business Standard, January 29,2013, https://www.business-standard.com/article/opinion/arvind-subramanian-self-insurance-the-debateindia-must-have-108112601069_1.html.The renewed devaluation of the Rupee in 2013 was also partly attributed to changes in the global capital market environment.12Shankar Acharya,“5 Policy Missteps That Have Led India to Economic Crisis,”Business Standard,August 8, 2013, https://www.business-standard.com/article/opinion/5-policy-missteps-that-have-led-indiato-economic-crisis-113080701462_1.html.India believes that the fluctuation of the Rupee in 2018 is due to“increased market pressure and uncertainty caused by the trade war declared by Trump”13Zeenat Saberin,“Indian Rupee Crisis:‘Worst Is Not Yet Over’,”ALJAZEERA, September 15, 2018,https://www.aljazeera.com/economy/2018/9/15/indian-rupee-crisis-worst-is-not-yet-over.and“the continued tightening of monetary policy by the Federal Reserve has led to a sudden stop of investment flows into emerging markets.”14Hugo Erken,“An Assessment of the Indian Rupee Crisis,”Rabobank, September 27, 2018,https://economics.rabobank.com/publications/2018/september/an-assessment-of-the-indian-rupeecrisis/#f3335966-f664-4b42-8a4a-95a54803d529.

After the outbreak of COVID-19, the Rupee has experienced several declines, which India still attributed to international financial market factors such as the reversal of the US Federal Reserve’s loose monetary policy.15Bhaskar Dutta,“Rupee Weakens 12 Paise to 75.14 against US Dollar,”The Economic Times, December 27, 2021, https://economictimes.indiatimes.com/markets/forex/rupee-weakens-12-paise-to-75-14-againstus-dollar/articleshow/88516724.cms.Therefore, to stabilize its currency, India supports the“de-dollarisation”process and promotes a new global monetary system to counterbalance the United States abuse of dollar hegemony.However, Prime Minister Singh once said that replacing the US dollar as the global reserve currency with another is highly complex and requires proper examination.16“India PM: Replacing Dollar Highly Complex Issue-paper,”Reuters, June 18, 2009, https://www.reuters.com/article/india-dollar-pm-idUSBOM45324020090618.Indian scholars also pointed out that“the misuse of the dollar hegemony is not entirely new for the US,”17Anuradha Chenoy,“Bypassing the Dollar: The Rise of Alternate Currency Systems,”The Wire, May 25, 2020, https://thewire.in/trade/dollar-currency-trade.“geopolitical reasons aside, reducing dollar exposure also makes economic sense for emerging markets to reduce their financial vulnerability to the vagaries of US monetary policy.”18Kavaljit Singh,“Letter: Reducing Dollar Exposure Makes Economic Sense,”Financial Times, April 1,2022, https://www.ft.com/content/bd1b3c7a-a652-4cff-82a0-354fa0623d62.

In India, the unjust actions of developed countries have caused the developing countries to be“exploited”in the trade game, resulting in many global trade problems.In agriculture, India is concerned about the subsidies provided by developing countries to key agricultural fields and advocates safeguarding the interests of developing countries to ensure the survival and security of hundreds of millions of its people.19Sachin Kumar Jain,“For India, the Fight at WTO Will Be about Food Security,”DownToEarth,December 9, 2017, https://www.downtoearth.org.in/news/economy/why-india-needs-to-fight-for-foodsecurity-at-wto-59310.However, developed countries believe that such“market-distorting subsidies”will affect market functioning, so they take trade sanctions and other measures to stop them.20Ibid.As a result, India is often at odds with traditional global economic governance players over trade tariffs and subsidies.

Kamal Nath, then India’s Trade Minister, once attacked developed countries on issues such as manufacturing, agricultural tariffs and agricultural subsidies and accused the EU of trying to use the negotiations to save Europe’s“high-cost, uncompetitive industries”that are inevitably going to suffer over time as a result of globalization.He also said the United States was seeking commercial gains in agriculture at the expense of livelihoods and food security in impoverished regions around the World.21“Bush Calls Manmohan on WTO Talk,”The Economic Times, July 24, 2008, https://economictimes.indiatimes.com/news/economy/foreign-trade/bush-calls-manmohan-on-wto-talk/articleshow/3276437.cms?from=mdr.Moreover,India is deeply dissatisfied with the“Special 301 Investigation”launched by the United States and is eager to forge a united front against United States’unjustified unilateral measures.22“Prime Minister Manmohan Singh Urged to Reject US Pressure Tactics on Trade and Business Policies,”The Economic Times, March 28, 2014, https://economictimes.indiatimes.com/news/economy/foreign-trade/prime-minister-manmohan-singh-urged-to-reject-us-pressure-tactics-on-trade-and-businesspolicies/articleshow/32837692.cms?from=mdr.

India believes that there is a regulatory gap in the current global economic governance system, which increases the uncertainties and risks faced by the economic development of all countries.With the increasing volatility of the world economy, many new problems have emerged in traditional fields that need to be solved urgently.“Prolonged war in Ukraine; high and rising inflation and public debt; currency wars; trade tensions; commodity shortages;and heightened uncertainty and asset prices volatility that may lead to financial instability.Central banks are moving their policy cycle from ultra-loose to tightening, increasing the risk of recession.”23Puja Mehra,“India’s Vulnerability in the Global Economic Tumult,”The Hindu, May 11, 2022, https://www.thehindu.com/opinion/op-ed/indias-vulnerability-in-the-global-economic-tumult/article65403521.ece.Speaking at the United Nations,Sneha Dubey, an Indian diplomat, said there was a lack of governance in the global economic governance system,“If the conflict does not give way to a meaningful path of dialogue and diplomacy immediately, there will be severe repercussions in the global economy.”24“Unresolved Ukraine Crisis Can Derail Global Effort to End Hunger: India,”Business Standard, July 19, 2022, https://www.business-standard.com/article/current-affairs/unresolved-ukraine-crisis-can-derailglobal-effort-to-end-hunger-india-122071900101_1.html.In response, Indian Finance Minister Sitharaman has described cryptocurrencies as a risky area that is not within the complete regulatory framework.25Mehab Qureshi,“A Look at Cryptocurrency’s Journey So Far in India,”The Indian Express.November 30, 2021, https://indianexpress.com/article/technology/crypto/cryptocurrency-in-india-a-look-at-theregulatory-journey-of-cryptocurrencies-7648767/.The government is worried about potential risks such as money laundering and fraud.26Abhinav Ranjan,“Cryptocurrency: Why Is the Government Worried?,”IndiaTVNews, November 30,2021, https://www.indiatvnews.com/business/news-cryptocurrency-bitcoin-digital-currency-india-rulesinvestment-crypto-bill-modi-government-rbi-747451.It has proposed an urgent need to“strengthen measures to protect investors until they can be banned or strictly regulated.”27Srihath Sridharan,“Crypto Policy and India: The Spectacle Continues,”ORF, March 5, 2022, https://www.orfonline.org/expert-speak/crypto-policy-and-india-the-spectacle-continues/.The fundamental reason is that India is eager to strive for a voice in the new issues and fields of global economic governance.

The traditional governance mechanism has ossified, and yet the emerging governance mechanism is inefficient

Each specialized governance body has formed a special operating mechanism to provide public goods for the World in their role to promote the normal operation of the global economic governance system.India believes that the unreasonable institutions and procedures existing in the traditional global economic governance bodies such as the IMF and the World Bank have put India and other developing countries in an unequal position.The IMF, with the quota allocation system as its core, involves the special drawing right (SDR) and voting power of member countries, as well as the functions of loans, reserves and decision-making.Similarly, the voting rights of member countries of the World Bank are determined by their share of capital stock.Former Indian Prime Minister Singh argued that the United States and Europe dominate the IMF and the World Bank with unreasonable institutional and procedural arrangements.Therefore, it is relevant to ask whether its systems and procedures are adequate for multilateral surveillance of macroeconomic imbalances and their relationship to financial stability.28Government of India,“Statement by the Prime Minister Dr.Manmohan Singh, at the Summit of the Heads of State or Governments of the G-20 countries on Financial Markets and the World Economy,”November 15, 2008, https://www.mea.gov.in/outoging-visit-detail.htm?1747/Statement+by+the+Prime+Minister+Dr+Manmohan+Singh+at+the+Summit+of+the+Heads+of+State+or+Governments+of+the+G20+countries+on+Financial+Markets+and+the+World+Economy.Based on the basic principle of consensus, the WTO also suffers from the impact of the hegemonic countries’domineering actions and faces a survival crisis.India has long called for reforms to redress inequality.Modi said,“IMF should remain a quota-based institution and not depend on borrowed resources.”29Shubhajit Roy,“G20 Endorses India’s Concerns over Delays in Implementation of IMF Reforms,”The Indian Express, November 17, 2015, https://indianexpress.com/article/india/india-news-india/g20-endorsesindias-concerns-over-delays-in-implementation-of-imf-reforms/.Finance Minister Sitharaman also pointed out that the quota review should address the long-pending issue of under-representation of emerging and developing economies and the dynamic economies in the IMF’s quota shareholding.30“India Expresses Disappointment over Lack of Support for IMF Quota Increase,”The Economic Times, October 20, 2019, https://economictimes.indiatimes.com/news/economy/policy/india-expressesdisappointment-over-lack-of-support-for-imf-quota-increase/articleshow/71671512.cms.

From India’s perspective, the United States and other Western countries have deliberately ignored and delayed the reform of the governance mechanism of the traditional global economic governance bodies, which has led to increasing conflicts among member states.On the one hand, India believes that the US not only intentionally ignored and delayed“addressing the insufficient voting power of emerging countries including India in the IMF”but also caused“the collapse of the trade dispute settlement mechanism”and“world trade is about to enter a stage where there are no official solutions to many international disputes.”31“Explained: The WTO’s Dispute Settlements Mechanism Is All but Dead.This is why India should worry,”The Indian Express, December 9, 2019, https://indianexpress.com/article/explained/explained-thewtos-dispute-settlements-mechanism-is-all-but-dead-this-is-why-india-should-worry-6158502/.On the other hand, developed countries still enjoy the differential treatment in traditional mechanisms.At the WTO meeting in October 2020, India stated that“it is clearly evident that select developed countries continue to enjoy some kind of special and differential treatment(S&DT) in recruitment at the WTO, but often the narrative is to accuse and defame the developing countries for their legitimate S&DT entitlements in WTO agreements.”32“Staff Representation of India in WTO Secretariat Stagnant in Past 25 Years.”India also called for the reform of recruitment procedures at the World Bank and the IMF,“the true potential of the Bank and Fund would be realized only by building more democratic governance structures and strengthening their financial capacity.”33Government of India,“BRICS Joint Statement on Strengthening and Reforming the Multilateral System,”June 1, 2021, https://www.mea.gov.in/bilateral-documents.htm?dtl/33888/brics+joint+statement+on+strengthening+and+reforming+the+multilateral+system.

India advocates that emerging global economic governance bodies’governance mechanism needs further improvement.The G20 relies on the“troika”formed by the Presidents of the previous, current and next summits and the“member state-driven”operating mechanism.However, this informality has led to instability and inefficiency due to the lack of permanent institutions.Modi said at the G20 Hangzhou Summit,“what G20 needs is an action-oriented agenda of collective, coordinated and targeted action,”and expressed India’s desire to improve the financial system, boost domestic production, enhance infrastructure investment and create a pool of human capital through the G20.34Zafri Mudasser Nofil,“G20 and India,”Employment News, http://employmentnews.gov.in/newemp/MoreContentNew.aspx?n=SpecialContent&k=109.Meanwhile, Modi also pointed out,“we have to consider the direction of BRICS and cooperation to be more effective in the next ten years.We must make BRICS mechanisms and processes more efficient and outcome-driven to meet the challenges of the global economy.”35Government of India,“Translation of Prime Minister’s Remarks at Plenary Session of 11th BRICS Summit in Brasilia,”November 15, 2019, https://mea.gov.in/Speeches-Statements.htm?dtl/32039/Translation_of_Prime_Ministers_remarks_at_plenary_session_of_11th_BRICS_Summit_in_Brasilia.These propositions indicate that India believes that the BRICS mechanisms also suffer from inadequate institutional design and inefficient cooperation.Therefore, different from promoting the reform of traditional global economic governance bodies, India introduced its development concepts into the emerging global governance bodies before they tried to gain a say in key areas and create an environment conducive to India’s national interests.

The goals of global economic governance have yet to be achieved,and the road to reform is long and arduous

The global economic governance system aims to achieve fair, just,efficient, high-quality, stable and sustainable global economic development and win-win cooperation.India believes the traditional global economic governance system has not effectively revitalized the global economy.As the world economy enters a phase of shock adjustment, India believes that traditional global economic governance players should actively boost the world economy,“the WTO should play its role in containing global inflation.”36“India Wants WTO to Play Its Role in Containing Global Inflation,”The Economic Times, May 12,2022, https://economictimes.indiatimes.com/news/economy/foreign-trade/india-wants-wto-to-play-its-rolein-containing-global-inflation/articleshow/91523599.cms.But in fact,“many institutions have come under stress because they’ve lost legitimacy, vitality, efficiency,”37Government of India,“External Affairs Minister’s Remarks on the Topic‘Preparing for a Different Era’at Center for Strategic and International Studies, Washington D.C.(October 01, 2019),”October 1, 2019, https://www.mea.gov.in/Speeches-Statements.htm?dtl/31889/external+affairs+ministers+remarks+on+the+topic+preparing+for+a+different+era++at+center+for+strategic+and+international+-studies+washington+dc+october+01+2019.which causes frequent global economic problems.India has questioned the effectiveness of the traditional global economic governance system and is pushing for reform.In 2011, then Prime Minister Manmohan Singh argued,“the reforms in Bretton Woods institutions are high on the agenda of developing countries.”38PR Ramesh,“PM Questions IMF Practice of Selecting European Head,”The Economic Times, May 26, 2011, https://economictimes.indiatimes.com/news/politics-and-nation/pm-questions-imf-practice-of-selecting-european-head/articleshow/8576729.cms.Finance Minister Pranab Mukherjee said,“a dynamic process of reform is necessary to ensure the legitimacy and effectiveness of the Fund (IMF), and the best possible means to improve governance and legitimacy is by ensuring that there is no slippage on crucial reforms.”39“India Concerned over Slow Pace of IMF Quota Reforms,”The Economic Times, April 21, 2012,https://economictimes.indiatimes.com/news/economy/finance/india-concerned-over-slow-pace-of-imfquota-reforms/articleshow/12801873.cms.And Prime Minister Narendra Modi also“reiterated the importance of reforms in multilateral organizations to ensure better global governance for faster post-COVID recovery.”40“PM Narendra Modi at G20 Calls for Reform in Multilateral Organizations to Ensure Better Global Governance,”The Economic Times, November 22, 2020, https://economictimes.indiatimes.com/news/politics-and-nation/pm-narendra-modi-at-g20-calls-for-reform-in-multilateral-organisations-to-ensurebetter-global-governance/articleshow/79356392.cms?from=mdr.

India thinks that the reform of the global economic governance system is inadequate and slow.“Quota reform is the normal way to effect a change in voting power, but it has been contentious and incremental,”41“Statement by the Prime Minister Dr.Manmohan Singh, at the Summit of the Heads of State or Governments of the G-20 countries on Financial Markets and the World Economy.”Prime Minister Singh said in a speech at the G20 Summit in 2008.In 2014, India’s Central Bank Governor Raghuram Rajan said emerging economies could not wait too long for the reform.42“G20 Regrets IMF Reforms Delay India Says Can’t Wait for Long,”Hindustan Times, February 24,2014, https://www.hindustantimes.com/business/g20-regrets-imf-reforms-delay-india-says-can-t-wait-forlong/story-u8I2CWKYgpRONVGUQAwfvI.html.In 2021, India’s Finance Minister Sitharaman stated that“UN, World Bank, IMF are in need of urgent reforms,”and India“will remain committed to revisiting the adequacy of IMF quotas and will continue the process of IMF governance reform under the 16th General Review of Quotas.”43U.S.Department of The Treasury,“G20 Finance Ministers and Central Bank Governors Meeting Communiqué,”February 18, 2022, https://home.treasury.gov/news/press-releases/jy0601.

In the meantime, India deems that emerging global economic governance players need to be able to play an important role of“changemakers.”As Prime Minister Singh pointed out at the second BRICS Summit,“BRIC countries are also uniquely placed to contribute to reforming the architecture of global governance.”44“BRIC Must Create a New World Order: Lula.”From India’s perspective, the reform achievements of the BRICS countries are far from enough, and emerging global economic governance players need to intensify and speed up the reform efforts.Prime Minister Modi emphasized that, for an inclusive,resilient and sustainable recovery in a Post-COVID world, effective global governance is required, and the reform of multilateralism through improved governance and enhanced processes is the need of the hour.45Indian Prime Minister’s Office,“15th G20 Leaders’Summit,”November 22, 2020, https://pib.gov.in/PressReleasePage.aspx?PRID=1674987.At the BRICS Summit, Modi also said,“ten years after the founding of BRICS, this forum is a good platform to consider the direction of our efforts in the future,”and requested“the BRICS Business Forum to study the necessary business initiatives to take full advantage of the opportunities thus generated.”46“India is World’s Most Open, Investment-friendly Economy: PM Modi at BRICS Summit,”The Print,November 14, 2019, https://theprint.in/economy/india-is-worlds-most-open-investment-friendly-economypm-modi-at-brics-summit/320784/.

India’s Policy Orientations on Global Economic Governance

India’s policy orientation on global economic governance is fundamentally driven by its“economic self-interest.”Since the Rao government started economic liberalization in the 1990s, India has put economic interest maximization as the priority of diplomacy.47Shashi Tharoor and John Koshy,“PV Narasimha Rao: In Praise of an Internationalist,”OPEN, October 9, 2020, https://openthemagazine.com/essay/pv-narasimha-rao-in-praise-of-an-internationalist/.Successive governments have continued the new economic policy characterized by“liberalization,marketization, globalization and privatization”and began participating in global economic governance“in earnest.”Since the 21st Century, India has shown a more positive attitude towards shouldering greater responsibilities in global economic governance.As the then Prime Minister Singh noted,India should and could become an important“participant”in global economic governance, not just a“petitioner”or a“protestor.”48Sanjaya Baru,“India and the World – Economics and Politics of the Manmohan Singh Doctrine in Foreign Policy,”ISAS Working Paper, No.53, 2008, pp.1-24.Since the Modi government came to power in 2014, India has demonstrated greater resistance to being dominated by Western ideas and goals in the international arena49Deepa M.Ollapally,“India and the International Order: Accommodation and Adjustment,”Ethics and International Affairs, Vol.32, 2018, pp.61-74.and actively pushed the global economic governance system in a direction better serves India’s national interest.

Offering“Indian Proposal”to the global economic governance

India has been trying to maintain a global economic governance system“based on rules and multilateralism.”Believing that a free and multilateral global economic order benefits its interests, India often makes statements on upholding the global economic governance system“based on rules and multilateralism.”For example, India and Italy issued a joint statement in 2017, declaring to“uphold the rules-based international governance system.”50Government of India,“India-Italy Joint Statement during the Visit of Prime Minister of Italy to India (October 30, 2017),”October 30, 2017, https://www.mea.gov.in/bilateraldocuments.htm?dtl/29068/indiaitaly+joint+statement+during+the+visit+of+prime+minister+of+italy+to+india+october+30+2017.Furthermore, India and the other BRICS countries issued a joint statement in 2018 in which they“reiterated BRICS commitment to multilateralism and a rules-based international order, and in this regard reaffirmed the centrality of the UN, WTO and international law.”51Government of India,“Media Statement on Meeting of BRICS Ministers of Foreign Affairs/International Relations,”September 27, 2018, https://www.mea.gov.in/bilateraldocuments.htm?dtl/30442/media+statement+on+meeting+of+brics+ministers+of+foreign+affairs+international+relations.Furthermore, the joint statement of the India-EU Summit in 2020 affirmed to“promote effective multilateralism and a rules-based multilateral order with the UN and WTO at its core.”52Government of India,“Joint Statement of the 15th India-EU Summit (July 15, 2020),”July 15,2020, https://www.mea.gov.in/bilateral-documents.htm?dtl/32827/joint+statement+of+the+15th+indiaeu+summit+july+15+2020.The“rules”and“multilateralism”advocated in these statements aim to give India greater legitimacy and initiative in future international competition.

India has advocated for the global economy to“achieve inclusiveness and interconnected development.”Prime Minister Modi believed that“democratic values along with inclusive economic development and progress have the power

to bridge all the gaps,”53Government of India,“Prime Minister’s Statement on the Subject‘Creating a Shared Future in a Fractured Word’in the World Economic Forum (January 23, 2018),”January 23, 2018, https://www.mea.gov.in/Speeches-Statements.htm?dtl/29378/Prime+Ministers+Keynote+Speech+at+Plenary+Session+of+World+Economic+Forum+Davos+January+23+2018.he stressed that the global economy should“achieve inclusive and interconnected development.”54“PM Modi’s Remarks on Inclusive and Interconnected Development at G20 Summit Working Lunch,”Narendra Modi, September 5, 2016, https://www.narendramodi.in/pm-modi-s-remarks-on-inclusive-andinterconnected-development-at-g20-summit-working-lunch-522296.Specifically, India, on the one hand, has lent clear-cut support for international development initiatives such as the 2030 Agenda for Sustainable Development and the G20 Action Plan, which included development policies such as a sustainable taxation system, supply chain building and inclusive finance.On the other hand,India also put forward policy proposals emphasizing“inclusiveness”to the institutions of global economic governance.For example, at the G20 Summit in 2013, relevant, coordinated policies were adopted to“avoid any disruption in India and other large developing countries by the imminent phase-out of fiscal stimulus by the US Federal Reserve.”55“Prime Minister Manmohan Singh’s Statement Prior to His Departure for Russia for G20 Summit,”NDTV, September 4, 2013, https://www.ndtv.com/business/prime-minister-manmohan-singhs-statementprior-to-his-departure-for-russia-for-g20-summit-326705.India also proposed a series of policy measures in 2015 to solve the problem of“high capital requirements constraints on developing countries.”56“PM Modi Calls for One Voice Against Terrorism at G20 Summit: Live Updates,”NDTV, November 16, 2015, https://www.ndtv.com/world-news/g20-summit-in-turkey-live-updates-1243588.In 2019, India, South Africa and seven other countries submitted a joint proposal based on the“principle of inclusiveness and fairness”at the WTO General Council meeting.57D.Ravi Kanth,“India’s Proposal for WTO Reforms Supported by a Large Majority of Countries,”Mint, July 26, 2019, https://www.livemint.com/news/india/india-s-proposal-for-wto-reforms-supported-bya-large-majority-of-countries-1564144186373.html.In 2020,India and South Africa submitted a joint document to the WTO to push for the inclusive development of global e-commerce.58Amiti Sen,“At WTO, India and South Africa Call for Inclusive Development of Global E-comm,”The Hindu Business Line, November 10, 2021, https://www.thehindubusinessline.com/news/national/at-wtoindia-and-south-africa-call-for-inclusive-development-of-global-e-comm/article37426016.ece.It can be seen that India strives to promote the global economic governance system towards a multilateral, more equitable and inclusive direction, to protect the rights of developing countries, including India, in global economic governance.

Offering“Indian solutions”to improving the global economic governance system

India has been actively promoting global economic governance reform to make it more favourable for India.Since the Doha Round of negotiations in 2001, India has requested the WTO to amend the Agreement on Agriculture,and the country has adopted a series of measures to protect its agriculture and agricultural product markets by using special and differential treatment provisions.After the 2008 financial crisis, India participated in the basic rulesmaking for the regulatory structure of the world financial system.It promoted the Financial Stability Forum (FSF) and the Basel Committee on Banking Supervision to become key standard-setting institutions.59Government of India,“Statement by Prime Minister Dr.Manmohan Singh to the Press at London,”April 2, 2009, http://www.mea.gov.in/outoging-visit-detail.htm?1020/Statement+by+Prime+Minister+Dr+Manmohan+Singh+to+the+Press+at+London.India is trying to shed itself off the old mode, as the then Prime Minister Singh cautioned,“not the root cause of the crisis, but one of the most seriously affected victims.”60“Statement by the Prime Minister Dr.Manmohan Singh, at the Summit of the Heads of State or Governments of the G-20 Countries on Financial Markets and the World Economy.”

Furthermore, India submitted the proposal of the Possible Elements of a Trade Facilitation in Services Agreement to the WTO in 2016, advocating for eliminating various border bottlenecks and procedural barriers to service trade.61WTO,“Communication from India, Possible Elements of a Trade Facilitation in Services Agreement,”November 14, 2016, https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009-DP.aspx?language=E&C atalogueIdList=232684.The proposal is also an initiative India took to advance service trade that benefits developing countries.It is thus clear India is guiding the development of global economic governance rules in a direction more in line with India’s interests.

India has been promoting concrete reforms of international organizations.First, India makes the quota reform of the IMF a priority while demanding that emerging market countries such as India be given a greater voice62“Modi Says India Won’t Join Currency Devaluation Race to Boost Trade,”Business Standard, March 12, 2016, https://www.business-standard.com/article/economy-policy/modi-says-india-won-t-join-currencydevaluation-race-to-boost-trade-116031200869_1.html.to solve the problem of insufficient representation in quotas.63“India Expresses Disappointment over Lack of Support for IMF Quota Increase.”In 2010, India, China, Pakistan and Russia successfully requested the IMF to transfer more voting rights to emerging markets and developing countries.64“Press Release: IMF Board of Governors Approves Major Quota and Governance Reforms,”IMF,December 16, 2010, https://www.imf.org/en/News/Articles/2015/09/14/01/49/pr10477.As the new decision entered into force, India’s quota increased from 2.3 percent to 2.6 percent.Since then, India has insisted that the IMF further increase its quota.The BRICS Joint Statement on Strengthening and Reforming the Multilateral System, initiated and promoted by India,was adopted in 2021, urging the IMF to complete the 16th general review of quotas in a timely manner.65“BRICS Joint Statement on Strengthening and Reforming the Multilateral System.”Secondly, India also calls on the IMF and the WTO to eliminate discrimination against developing countries.It insists that the selection of IMF executives should not consider nationality and that the participation of developing countries should be increased.66Hu Yanping,“Motives, Constraints and Paths of China’s Promotion of Change in Global Governance System,”Academics, No.9, 2020, p.143.The Draft Ministerial Decision on WTO Reform submitted by India also included the requirement to“facilitate the effective participation of developing and least-developed members in the multilateral trading system and its decisionmaking process (with emphasis on special and differential treatment).”67“North-South Divide on WTO Reforms—South Faces‘Herculean’Task,”TWN, December 22, 2021,https://www.twn.my/title2/wto.info/2021/ti211212.htm.Finally, India is also very concerned about the restoration of the WTO trade dispute settlement mechanism, and made requests in the Draft Ministerial Decision on WTO Reform to“address the challenges facing the WTO dispute settlement system.”68“North-South Divide on WTO Reforms—South Faces‘Herculean’Task.”At the same time, India also issued a joint statement with other BRICS countries, proposing to“ensure the restoration and maintenance of the normal operation of the WTO dispute settlement mechanism, including the selection of members of the Appellate Body as soon as possible.”69“BRICS Ministers Reiterated the Important Role of the United Nations Conference on Trade and Development in the Integrated Treatment of Trade and Development,”India News, June 1, 2021, https://bd.indianewsnetwork.com/20210601/brics-foreign-ministers-call-for-reform-of-wto.Through these measures, India is trying to let WTO play its role in promoting“more effective trade liberalization and globalization of developing countries.”70“WTO Chief Calls on PM Narendra Modi,”The Economic Times, March 19, 2018, https://economictimes.indiatimes.com/news/politics-and-nation/wto-chief-calls-on-pm-narendra-modi/articleshow/63370554.cms?from=mdr.

India has put forward new issues and initiatives on global economic governance.For example, India has actively pushed for formulating and implementing global corporate tax to address the mismatch between the source of profits and taxation jurisdiction.71“PM Narendra Modi Pitches India as Partner for G20 Economic Revival,”The Economic Times, October 31, 2021, https://economictimes.indiatimes.com/news/economy/policy/pm-narendra-modi-pitches-indiaas-partner-for-g20-economic-revival/articleshow/87413818.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst.Recently, the country has signed a digital tax agreement together with 129 countries that target the top 100 companies in the world.72“India Shifts International Tax Deal Stand with an Eye on Revenue,”Business Standard, July 3, 2021,https://www.business-standard.com/article/companies/india-shifts-international-tax-deal-stand-with-an-eyeon-revenue-121070300075_1.html.The Agreement would increase the revenue of the Indian government and solve the rampant tax avoidance problem in India.Furthermore, on the digital economy, India proposed the“5-I”vision to maximize the use of digital technologies to help India become a larger economy and benefit the world.73Dipanjan Roy Chaudhury,“PM Modi Presents‘5-I’Vision to Maximise Tech for Social Benefits at G20,”The Economic Times, June 29, 2019, https://economictimes.indiatimes.com/news/politics-and-nation/pm-modi-presents-5-i-vision-to-maximise-tech-for-social-benefits-at-g20/articleshow/69997726.cms.In addition, India proposed the idea of“sharing technology”on cryptocurrencies to prevent any“illegal”activities and ensure asset security.74Shubham Batra,“After Taxing Crypto, PM Modi to Ask G20 Leaders for Joint Effort to Regulate Crypto Assets,”The Print, February 3, 2022, https://theprint.in/economy/after-taxing-crypto-pm-modi-toask-g20-leaders-for-joint-effort-to-regulate-crypto-assets/819937/.

To promote infrastructure construction and mobilize resources for sustainable development, India proposed the establishment of the BRICS New Development Bank (NDB).75Ritika Passi,“India and China in Multilateral Economic Governance: Worldviews, Approaches,and IFIs,”ORF, September 6, 2019, https://www.orfonline.org/research/india-and-china-in-multilateraleconomic-governance-worldviews-approaches-and-ifis-55184/.India also advocated the establishment of contingent reserve arrangements (CRA), credit rating agencies and early warning systems, intending to provide a safety net for BRICS countries to withstand possible future shocks.76Ritika Passi,“India and China in Multilateral Economic Governance: Worldviews, Approaches, and IFIs.”India also aspires to provide more global public goods by committing more resources.77Harsh V.Pant,“Rising India and Its Global Governance Imperatives,”Rising Powers Quarterly, Vol.2,No.3, 2017, pp.7-17.India will take over the rotating presidency of the G20 starting in December 2022.It has set the agenda around the theme of“post-pandemic recovery,”which would include the formulation of the Common Framework for Debt Treatment beyond the Debt Service Suspension Initiative (DSSI), the recycling of special drawing rights for countries in need, and the implementation of agreements on profit redistribution and global minimum taxes.78Gauri Khandekar,“India’s G20 Presidency – Prioritising an Equitable Post-pandemic Recovery,”Euractiv, March 2, 2022, https://www.euractiv.com/section/eu-india/opinion/indias-g20-presidencyprioritising-an-equitable-post-pandemic-recovery/.

India has advocated for a diversified global value chain system.India believes“we can use India’s comparative advantage of cheap and skilled labour to improve its manufacturing industry and reduce the trade deficit.”79Swaminathan A Aiyar,“Why Being a Part of the Global Value Chain Matters for India,”The Economic Times, January 15, 2020, https://economictimes.indiatimes.com/news/economy/foreign-trade/whybeing-a-part-of-the-global-value-chains-matters-for-india/articleshow/73256703.cms?from=mdr; Surjith Karthikeyan,“Global Value Chains and Trade Statistics: Why Do They Matter?,”Business Standard,November 19, 2021, https://www.business-standard.com/article/opinion/global-value-chains-and-tradestatistics-121111901150_1.html.Therefore, India strives to improve its position in the global value chain to maximize its interests.Since the outbreak of the COVID-19 pandemic, India has actively promoted the reconfiguration of the global value chain.Prime Minister Modi stressed at the UN General Assembly meeting in September 2021 that a lean global value chain of the traditional mode is a major obstacle to resolving the crisis and that“the expansion of the global value chain is important as COVID-19 taught the world that the global economy should be more diversified now.”80“UNGA: PM Modi Pitches for Diversification of Global Economy, Value Chain Expansion,”ANI,September 25, 2021, https://www.aninews.in/news/world/us/unga-pm-modi-pitches-for-diversification-ofglobal-economy-value-chain-expansion20210925221349/.India advocates for reforming the traditional and unitary global value chain system, believing that it occupies an irreplaceable position in building a“diversified”global value chain and is the best choice to replace China.“India has great potential for attracting investment from MNEs which may now be looking for diversifying/shifting their production facilities away from China.”81Rajesh Chadha,“Fractured Global Value Chains Post COVID-19: Can India Gain Its Missed Glory?,”Brookings, May 11, 2020, https://www.brookings.edu/blog/up-front/2020/05/11/fractured-global-valuechains-post-covid-19-can-india-gain-its-missed-glory/.To this end, Modi proposed in September 2020 to transform India from a“passive market to an active manufacturing hub at the heart of global value chains.”82“PM Modi Pitches India as Hub for Global Supply, Value Chains in Post-Covid-19 World,”Hindustan Times, September 4, 2020, https://www.hindustantimes.com/india-news/pm-modi-pitches-india-as-hub-forglobal-supply-value-chains-in-post-covid-19-world/story-2hyIxNxZ7HJIdQzCYowaFI.html.Modi emphasized again in January 2022 that“India is committed to becoming a trusted partner in the world in global supply chains.”83Government of India,“Prime Minister’s‘State of the World’Address at World Economic Forum, Davos Summit,”January 17, 2022, https://www.mea.gov.in/SpeechesStatements.htm?dtl/34754/Prime_Ministers_State_of_the_World_address_at_World_Economic_Forum_Davos_Summit.

Offering“Indian experience”in global economic governance practice

India has been promoting the sustainable development of impoverished countries through international aid and other means.India has long been promoting the sustainable development of impoverished countries in the spirit of“South-South cooperation.”It is mainly reflected in India’s efforts to help poor developing countries improve their position in the global economy through establishing development partnership funds and the implementation of international aid and other measures.India’s development aid focus on Africa.It promotes the sustainable development of impoverished African countries with grants, trade and credit, as well as through sharing technology,finance and knowledge.84Renu Modi,“South-South Cooperation between India and Africa: Advancing the 2030 Agenda for Sustainable Development,”December 22, 2016, https://www.unssc.org/news-and-insights/blog/southsouth-cooperation-between-india-and-africa-advancing-2030-agenda.India also plans to support infrastructure development in Africa through public-private partnerships(PPPs).85Chandrajit Banerjee,“A Makeover for the India-Africa Economic Partnership,”The New Indian Express, August 17, 2021, https://www.newindianexpress.com/opinions/columns/2021/aug/17/a-makeoverfor-the-india-africa-economic-partnership-2345542.html.During the Covid-19 pandemic, India also promised not to prematurely withdraw its support for these“most vulnerable groups.”86“PM Narendra Modi Pitches India as Partner for G20 Economic Revival.”In addition, India has made up for the inadequacy of G7 in vaccine supply and expanded the global vaccination campaign through investment in vaccine production and distribution.87T K Arun,“Does G7 Matter? Does it Make a Difference to India? A 7-Step Quick Guide to the 7-country Summit,”The Times of India, June 14, 2021, https://timesofindia.indiatimes.com/blogs/cursor/does-g7-matter-does-it-make-a-difference-to-india-a-7-step-quick-guide-to-the-7-country-summit/.This move allowed India to reap economic benefits, expand its influence in global economic governance, and gain more international support.

The economic governance policies introduced in India bring inspiration to other countries.India’s sustained innovation in structural reform and social security has made it the country with the highest poverty reduction rate from 2005 to 2015.88“India Lifted Record 273 Million Out of Poverty in 10 years, Says UN Report,”Business Standard,July 18, 2020, https://www.business-standard.com/article/current-affairs/at-273-mn-india-recorded-largestreduction-in-poverty-over-10-years-un-120071700468_1.html.India’s Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), government public distribution system (PDS), other centrally sponsored schemes (CSS) and direct welfare transfer programs (DBT) have offered the experience of poverty reduction to other countries.89Kumar Das and Bijeta Mohanty,“Poverty Eradication in India: Successes and Shortcomings of Social Protection,”IGC, October 15, 2020, https://www.theigc.org/blog/poverty-eradication-in-india-successesand-shortcomings-of-social-protection/.Goods and Services Tax (GST), Production Linked Incentive Scheme (PLI),“Made in India,”“Digital India,”and other policies can also be used for reference by other countries.Thanks to the rapid progress in vaccination and effective fiscal and monetary policies, India’s economy is recovering from the pandemic.90“India’s Economy Recovery on‘Solid Path’amid Rapid Vaccination Progress, Forecast to Grow 6.5 Percent in FY 2022: UN,”The Economic Times, January 13, 2022, https://economictimes.indiatimes.com/news/economy/finance/indias-economy-recovery-on-solid-path-amid-rapid-vaccination-progress-forecastto-grow-6-5-per-cent-in-fy-2022-un/articleshow/88883041.cms?from=mdr.At the same time, sharing relevant governance experience has also expanded India’s influence.

Prospect and Implications of India’s Participation in Global Economic Governance

India’s participation in global economic governance aims to maximize its interests and enhance its voice in the international economic realm.To achieve this goal, India needs to actively participate in the multilateral institutions of global economic governance, push for the reform of the traditional global economic governance system, and ensure the stability and sustainable development of the global economy.Thus far, India’s participation has not successfully brought about reforms.For example,the IMF reform is slow, and the WTO reform failed to reach a consensus in the group consultations of the 12th Ministerial Conference in 2021.91“Discussions on Fundamental WTO Reforms Fail to Garner Consensus,”TWN, November 11, 2021,https://www.twn.my/title2/wto.info/2021/ti211111.htm.Due to its limitations and the harsh international political reality, India still faces constraints in participating in and promoting the reform of the global economic governance system.

India’s behaviour makes it unlikely to broadly promote substantial reform of the global economic governance system.As a conservative economy, India has limited weight and influence in global economy.Regarding geopolitics,India is highly involved on the international stage, but in geo-economics, it is quite the opposite.92Akshay Mathur,“India Must Build the Capacity to Make Its G20 Presidency in the Future a Success,”The Indian Express, January 29, 2019, https://indianexpress.com/article/opinion/columns/g20-summit-2020-india-narendra-modi-5558463/.With the economic slowdown, the conservative forces in India gained more followers locally, and xenophobia continues to rise.93Wu Jian,“Behind the‘Indian Miracle’,”Xinmin Weekly, No.21, 2021, pp.52-55.At the same time, India is also constrained in its ability to promote global economic governance reform.“There is limited expertise within think tanks or academia on this subject,”and“this restricts India to stay a passive rule-taker, not rulemaker or designer of global economic rules.”94Akshay Mathur,“India Must Build the Capacity to Make Its G20 Presidency in the Future a Success.”Although successive Indian governments often express their views on global economic governance on the international stage, India has taken insufficient reform policies and actions,confined to its traditional sphere of influence and thus has limited influence.

The complex international political relations have become a shackle for India to participate in global economic governance.Despite enjoying the“dividend of the political system”and“advantage of allies,”India’s reform initiatives would still suffer obstruction and delay if it hurts the vested interests of Western countries, resulting in frictions and disputes.For example, India asked the IMF to increase voting rights in 2010, but the US Congress delayed its approval until 2015.Since Western countries need to protect their vested interests, it would be inevitable for them to suppress India’s call for reforms.

However, in the long run, India is expected to become a major country with great influence in global economic governance.This is because India enjoyed having both“a system recognized by Western countries”and“a connection with the third world.”The United States and other Western countries have a natural“affinity”with India, which has partially inherited the British political structure, and they believe that India, as the largest democratic country in the world, is an indispensable country for democratic cooperation.95Constantino Xavier,“Interpreting India at the Summit for Democracy,”Brookings, December 6,2021, https://www.brookings.edu/blog/order-from-chaos/2021/12/06/interpreting-india-at-the-summit-fordemocracy/.Moreover, India has won a reputation in the third world through the Non-Aligned Movement.At the same time, India has huge potential for economic development.India’s demographic dividend and entrepreneurship have become the key factors to spur its economic growth.Although the COVID-19 pandemic has set back India’s economy, its growing market is still recognized by other countries.96“Elephant on the Move: India’s Economy Gathers Momentum,”DHL, February 1,2022, https://www.dhl.com/global-en/delivered/globalization/elephant-on-the-move-indias-economy-gathers-momentum.html.In addition, India enjoys the advantages of technological governance in emerging fields.In the future, global economic governance will involve cutting-edge science and technology with higher innovation content; therefore, countries that invest the most and make the fastest progress in new science and technology will have higher authority in these fields.97Wang Zhongmei,“Three-stage Prediction of Global Economic Governance Structure before 2035 and Analysis of Its Impacts,”World Economy Studies, No.3, 2016, pp.3-11.

Furthermore, India has the talent advantage required for hi-tech development.It has adopted policies to attract outstanding talents, while the conducive scientific research environment supports the governance of emerging fields.Therefore, the potential influence of India should not be underestimated.

Firstly, India will likely enter the decision-making core in developing the global economic governance system.India needs“a clear vision to lead a sustainable development agenda while positioning itself as a global power with interests beyond its immediate neighbourhood.”98Vikrom Mathur,“Institutional Architecture for India’s Development Cooperation: A 2030 Vision,”ORF, May 2, 2021, https://www.orfonline.org/expert-speak/institutional-architecture-india-developmentcooperation-2030-vision/.India’s goal is to increase its say in the international economic field.Objectively speaking, the COVID-19 pandemic and the Ukrainian crisis intensified the contradictions of an unbalanced global economy.The precarious international economic order has reached the point where it has to be readjusted.The way to resolve the contradictions is to bring emerging and developing countries into the core decision-making process concretely and inject vitality into multilateral participation.99Wang Zhongmei,“Three-stage Prediction of Global Economic Governance Structure before 2035 and Analysis of Its Impacts,”p.10.It can be seen that the objective global economic environment requires improving the voice and participation of developing countries such as India in global economic governance.In the Doha Round negotiations in 2001, India played a leading role in coordinating and agenda-setting and finally became a member of the“new five,”which symbolizes that India has entered the core decision-making process of the WTO.In the IMF and the World Bank, although India’s current status and voting rights are insufficient to support it to enter the core decision-making club, the long-term call for voting share reform is slowly changing the hierarchical order of these two international organizations.In particular, India’s efforts in emerging global economic governance institutions such as the G20 and BRICS will form an effective struggle against hegemonic forces in the global economic governance system,allowing India to gradually participate in the core decision-making process of the IMF and the World Bank.Therefore, India’s efforts will pay off when the multilateral order goes through a comprehensive upgrade, making it possible to enter the core of the systematic construction of global economic governance.

Secondly, it would foster an environment of global economic governance more aligned with the interests of developing countries, including India.India believes that“multilateralism”and“plurilateralism”are conducive to improving the existing institutional framework of development cooperation, and thus“to assert itself at a global scale, India must employ development cooperation objectives and utilize multilateral and plurilateral forums through a strategic plan.”100Vikrom Mathur,“Institutional Architecture for India’s Development Cooperation: A 2030 Vision.”The pronouncement demonstrates that India’s actions would objectively push the global economic governance toward decentralization of governance power and multi-polarization of governance structure, thus making the global economic governance environment more in line with the interests of developing countries and emerging markets.

Thirdly, the emerging institutions of global economic governance,such as the G20 and BRICS will be further enhanced.India has limited opportunities to speak in the traditional institutions of global economic governance.It has weak discourse and decision-making power, which is also the primary reason behind India’s and other developing countries’slow and ineffective efforts to promote the WTO and IMF reform.Therefore, for India, it is a more optimal decision to embrace the emerging global economic governance institutions and increase its voices by promoting its governance ideas, engaging in economic cooperation and increasing the production and supply of global public goods in the G20 and BRICS mechanisms.As a result, it is expected that the voice of emerging global economic governance institutions will be further enhanced in the future.

Fourthly, the global economic governance structure will be transformed into a multi-level and multi-dimensional system.India’s policy and measures in advocating for global economic governance reform promote the stability of regional and inter-regional economic governance systems.As a result, the core leadership of the global economic governance structure will gradually shift toward a multi-level and multi-dimensional system in which“regional and global multilateral systems will coexist.”101Wang Zhongmei,“Three-Stage Prediction of Global Economic Governance Structure before 2035 and Analysis of Its Impacts,”p.11.This governance structure will be maintained for a long time in the future, where developed and developing countries will serve as decision-making cores at different levels in the global or regional arenas, forming interloping mechanisms for dialogue,coordination and settlement on the same global economic governance issue.

Conclusion

As the global economic governance system enters a stage of profound adjustment, India is an important force that cannot be ignored.Given the consensus between China and India on raising the voice of developing countries, the two countries should work together to play a more positive and constructive role in reshaping the global economic governance system.However, the two countries may differ, or even clash, on more specific goals.Therefore, China needs to pay close attention to the ideas of India’s global economic governance and its chain reaction, be alert to the possible spillover effect of India’s policy uncertainty, and safeguard China’s legitimate rights and interests in global economic governance.

On the one hand, attention must be paid to the adverse influence of political factors on India’s global economic governance policy orientation.On the other hand, India attaches great importance to its relations with the US, and the border issue with China has heated up in recent years,leading India to adopt the policy of economic decoupling from China.The attempt to decouple from China is reflected in its imitation of the US trade protectionism against China, seeking ways to impose barriers on Chinese products entering the Indian market, and taking further economic“de-Sinification”measures since the COVID-19 pandemic.Therefore, it is foreseeable that political factors will inevitably become a major obstacle hindering China-India cooperation in global economic governance when the reform of it is specifically promoted in the future.Therefore, both sides must discuss how to seek common ground while shelving differences and jointly pursuing national prosperity.

On the other hand, attention must be paid to the swing of India’s global economic governance policy orientation.India’s perception and action of global economic governance are entirely based on self-interest motive, so its economic strategy choice will inevitably lead to high conflict in international economic relations.For example, during the pandemic outbreak in 2020, the IMF was asked to increase liquidity in the form of SDR to enable developing countries to participate in international trade.However, India chose to support the US by“refusing to create and allocate SDR for the pandemic,”an act that betrayed other developing countries102Jayati Ghosh,“Why India Should Support an SDR Issue by the International Monetary Fund,”The Wire, April 17, 2020, https://thewire.in/economy/india-sdr-issue-international-monetary-fund;CP Chandrasekhar and Jayati Ghosh,“The US and India have failed the developing world,”The Hindu Business Line, April 21, 2020, https://www.thehindubusinessline.com/opinion/columns/c-p-chandrasekhar/the-us-and-india-have-failed-the-developing-world/article31390227.ece.and abdicated its value responsibility of“inclusive and interconnected”global economic governance.Therefore, preventing the unexpected swing of India’s policies and behaviours is an issue that must be watched when China promote the reform of the global economic governance system together with India.

For the common interests of developing countries, China should do its best to enhance bilateral mutual trust, carry forward the spirit of“viewing bilateral relations from a long-term perspective, regarding each other’s development from a win-win mindset, and participating in the multilateral process with a cooperative attitude,”strengthen the resilience of bilateral cooperation, carry out pragmatic economic and trade exchanges and jointly safeguard the interests of developing countries in global economic governance.