Relevance : GS Paper II
Theme of the Article
Many regional policy challenges can be addressed with three major fixes.
Introduction
The main factors inhibiting India’s performance are ultimately domestic in nature.
Three Main Aspects
- TRADE: Much of India’s commerce involves raw materials and low value-added goods.
- DEFENCE: India is the world’s second largest arms importer.
- OVERSEAS CREDIT: India’s outgoing aid budget has been relatively flat.
Way forward
- TRADE: seize a larger share of exports through well-negotiated preferential trade agreements.
- DEFENCE: Defence indigenization will require financing for defence capital expenditure; assessments of costs, etc.
- OVERSEAS CREDIT: Indian overseas credit needs better project planning, better financing terms, etc.
Conclusion
Many regional policy challenges would be addressed with these three major fixes.