Gandhinagar: Economic power is central to shaping geopolitical standing, and India must accelerate growth while expanding its footprint in global trade to command greater international respect, former NITI Aayog vice-chairman Rajiv Kumar said on Wednesday.
Speaking at Rashtriya Raksha University, Kumar stressed that a nation’s diplomatic leverage is rooted in its economic capabilities. He echoed External Affairs Minister S. Jaishankar’s view that strengthening the domestic economy is the most effective foreign policy tool, noting that without sustained growth, countries lack the influence needed in global negotiations.
Drawing comparisons with China, Kumar highlighted how rapid economic expansion has enabled Beijing to assert itself internationally. He pointed out that leadership in frontier technologies has enhanced China’s strategic confidence, demonstrating the link between innovation, economic scale and geopolitical weight.
Kumar cautioned that nations with fragile economies often struggle to be heard in international forums. While diplomatic engagement remains important, he said meaningful participation on the world stage requires a far stronger economic base.
Referring to India’s trade performance, Kumar observed that the country’s share in global merchandise trade has remained below 2% for nearly three decades—far short of what is needed for significant global influence. Raising that figure substantially, he argued, should be a national priority. He added that India’s services trade share, estimated at around 4%, also underscores the need for broader economic expansion before aspiring to a larger global role.
On evolving India-US ties amid shifting policy dynamics, Kumar advised maintaining patience while firmly protecting national interests. He cited India’s ability to withstand sanctions following the 1998 nuclear tests as evidence of the country’s resilience during periods of external pressure.
Kumar also called for pursuing “real strategic autonomy,” urging policymakers to avoid excessive dependence on any single partner and to reassess key international relationships where necessary.
Highlighting the path forward, he described the private sector as the primary engine of growth and emphasised the importance of enabling businesses with policy support to unlock India’s economic potential.