What is the impact of international affairs on India's economy

Analyze the relationship between international affairs and India's economy, describing how global events and trends affect the country's economic performance.
The impact of international affairs on India's economy is significant. Here are some key points to consider:
  • Trade agreements: India's economic performance is closely tied to its trade relationships with other countries. International trade agreements can create new business opportunities in India and drive economic growth. For example, the India-US Bilateral Trade and Investment Agreement could promote trade and investment between the two countries.
  • Currency fluctuations: India's economy is affected by currency fluctuations in global markets. When the value of the Indian rupee decreases compared to other currencies, imports become more expensive and inflation can rise.
  • Global trends: India's economy is also affected by broader global trends, such as the growing demand for renewable energy and the rise of e-commerce. India has the potential to benefit from these trends by investing in green technologies and developing a robust e-commerce industry.
  • International sanctions: International sanctions imposed on India can have a negative impact on its economy. For example, sanctions on Iranian oil exports can increase oil prices in India, leading to higher inflation and slower economic growth.
  • Geopolitical tensions: Geopolitical tensions between India and other countries can also affect the economy. For example, tensions with China can lead to a decrease in foreign investment and trade between the two countries.
Overall, international affairs have a significant impact on India's economy, and it is important for policymakers to consider global trends and relationships when making economic decisions.
Answered a year ago
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