India’s foreign economic policy under Modi: negotiations and narratives in the WTO and beyond

Abstract

AbstractFor all the complexities of India’s politics, Prime Minister Narendra Modi seemed to have his economic path cut out for him. His ‘Achche din aane waale hein’ (good days are coming) campaign, which had won him a resounding election victory in 2014 for his first term, suggested that Modi’s primary goal was growth and development for his country and people, and hence also an agenda of economic reform. Focusing specifically on India’s negotiations in the context of the WTO, I show in this paper that India has continued to hold on to its former trade policy priorities and negotiation positions and adopted even more hard-line positions in some cases. Interestingly though, the same policy priorities and negotiation patterns that had ill-served India in the past may now no longer be a liability. This is only in part a credit to the Modi administration per se. Rather, it is mainly due to the rise of the phenomenon of “weaponized interdependence”, which in turn legitimizes—sometimes even necessitates—the securitization of foreign economic policy, and more specifically, trade politics. Taken in this changing context and as other countries also adopt a more market-cautionary approach, India’s historic and oft-reviled trade scepticism and reluctance to integrate in global value chains may yet allow it to have the last rhetorical laugh.