Extraordinary And Plenipotentiary Diplomatist July 19 Edition . | Página 33

An ADBI Initiative
Our diplomats are very restrained when it
comes to backing an Indian company’s bid in
an international tender, fi xing up appointments
or assisting in negotiations to clinch business
or in a trade dispute scenario.
sector in its eff orts to penetrate foreign markets. As of
now, the quality of support Indian companies receive
from missions varies from country to country and
Ambassador to Ambassador. Generally, our diplomats
are very restrained when it comes to backing an Indian
company’s bid in an international tender, fi xing up
appointments or assisting in negotiations to clinch
business or in a trade dispute scenario. This Is in sharp
contrast to the aggressive way in which many other
diplomatic missions support their companies, and must
change; Indian Chambers of Commerce also need to
change their tendency to simply follow the government
when it has high-level visits or reaches agreements
with another country. In today’s world, a pro-active
private sector can set the agenda and even infl uence
trade policies of governments; India is no exception.
Innovative approaches, new technologies and
environment- friendly, cost-effective offers are
increasingly preferred in deciding on new projects,
and smart economic diplomacy will be on the lookout
for them rather than routinely working for every
Indian bid; Economic Indigenization in critical areas
is essential, and often a well prepared diplomat could
open the doors to timely intervention at the policy level
which would further this objective. Thus, by way of
example in the ICT domain, Pavitran Rajans suggests:
“The journey to complete indigenisation is some
distance away as India lacks in chip foundries and
hardware manufacturing.
What India has, is the largest trained manpower
in software and a niche group of companies which
have invested in foundational technologies like OS,
Chip design, routers, fi rewalls etc.
We now need to do some nimble and pragmatic
business deals wherein these technologies will need
to be adopted by Western and Chinese companies
globally for access to the Indian market. For
example, a smartphone or networking appliance
with a Western chipset, Chinese hardware and
Indian OS with all source codes examined,
compiled and guaranteed by Indian companies for
India is the way forward.”
Similarly, the indigenisation of India’s huge
defence requirements could be greatly assisted by alert
and knowledgeable diplomats.
Then there is need to be sharp on multilateral issues
as there is a multilateral dimension—and opportunities
for India—accompanying almost every bilateral
engagement. BIMSTEC, BBIN, BRICS, BSA, EU
before and post-BREXIT, ASEAN, regional and sub-
regional groupings in Latin America and Africa—an
economic diplomat must be a multilateral animal if he
is to perform well for his country.
As has been said elsewhere:
Economic diplomacy not only promotes the
state’s prosperity but also, as occasion demands
and opportunity permits, manipulates its foreign
commercial and fi nancial relations in support of its
foreign policy – as in the case of sanctions against Iran.
Accordingly, economic diplomacy is a major theme of
the external relations of virtually all countries. At home,
economic ministries, trade and investment promotion
agencies, chambers of commerce, and of course
foreign ministries, are all participants in economic
work. Current trends include increasing collaboration
between state and non-offi cial agencies, and increased
importance given to WTO issues, the negotiation of free
trade and preferential trade agreements, and accords
covering investments, double taxation avoidance,
fi nancial services and the like. Abroad, embassies,
consulates, and trade offices handle economic
diplomacy. The main focus is on promotion, to attract
foreign business, investments, technology and tourists.
Economic diplomacy connects closely with political,
public and other segments of diplomatic work.
Then there are new issues on the international
agenda such as terrorist funding and cyber security.
Indian diplomats need to be extremely alert in
recognizing and protecting India’s national interests
even when it is not obvious that they are threatened.
Finally, economic diplomacy today means that
government-announced priorities and policies should
be repackaged and even adjusted in the interest of
augmenting advantages to the country. Thus, “Make In
India” should not preclude “Make With India” if that
is the way to win the competition from third countries
in South Asia or gain duty-free access to markets like
the USA from Latin America.
All in all, economic diplomacy gives great
opportunities for creative thinking objective judgement,
professional proactivism in close consultation with
governments and the private sector, as to how the
national interest can best be served. Its time has come
as India prepares to take off as a major power in the
world. 
Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 7 • July 2019, Noida • 33