Monograph

Post-COVID-19 Indian Economy and Changes in Diplomatic and Trade Strategies

Date 2021-12-07 View 1,162

In the post-COVID-19 era, changes in the international order will be most obvious in the Indo-Pacific region. With COVID-19, the U.S. is accelerating its efforts to form an economic and security Indo-Pacific region and exclude China. The Indo-Pacific countries are developing survival strategies in the new order.

 

One of the most notable actors is India. India experienced the worst economic crisis due to COVID-19 but began aggressive diplomacy based on the world's highest growth potential during the post-COVID-19 era. Under the name of overcoming the damage caused by the collapse of the supply chain caused by COVID-19, Korea is working to establish a “Secure Value Chain” that eliminates China from countries with similar positions. India, unlike in the past, has strengthened cooperation with major countries, including the United States, in promoting such initiatives, and is actively participating in consultative bodies linking trade and security. As a core partner of the U.S.-led Indo-Pacific Strategy, it is also working to form a variety of consultative bodies, including SCRI.

 

India is expected to accelerate its participation in the U.S.-led Indo-Pacific Strategy and Quad while pursuing a multilateral system that ensures strategic autonomy in India's non-aligned diplomatic tradition. In particular, India's participation in the non-alignment principle has played an important role in Quad's evolution into a practical regional cooperation platform. At the first Quad meeting in September 2021, specific cooperation plans were announced on non-traditional security issues such as vaccines, infrastructure, digital technology, cybersecurity, and climate change rather than traditional security issues.

 

What was discussed in the Quad are strong points to Korea as well. If Korea believes that the anti-China alliance is likely to weaken and develop into a practical agenda-centered consultative body, it should consider participating in the Quad. Meanwhile, trade cooperation with India, including CEPA negotiations, needs to be re-established to meet the changing strategic environment by establishing an efficient and safe supply network and expanding trade and security partnerships.