The New Economics of India’s Global Influence | Dhruva Jaishankar

In a world where geopolitical alignments are becoming more fluid, economic interdependence is increasingly strategic, and traditional assumptions about global influence are being tested, understanding India’s place in the international order requires more than studying bilateral relationships. It requires an appreciation of the networks, interests and historical experiences that shape how countries engage with one another. In this episode of Brown Business, part of our monthly country briefing, a wide-ranging conversation with Dhruva Jaishankar, Executive Director of Observer Research Foundation America, explores precisely these questions, from lines of credit and development finance to emerging diplomacy, strategic competition and the evolving role of the Indian diaspora.

At the heart of the discussion is the changing nature of India–US relations. Once defined more by differences than commonalities, the relationship has developed into a largely cooperative partnership, even as disagreements over tariffs, energy imports, multilateral alignments and immigration continue to surface. The challenge, however, is not simply to manage these differences, but to understand the policy ecosystems through which they emerge. In Washington, decision-making has traditionally involved multiple institutions and stakeholders; shifting political dynamics have altered the effectiveness of established engagement channels. For organisations such as ORF America, the ability to convene, facilitate candid conversations and remain independent becomes particularly valuable when diplomatic relationships are under strain.

The conversation also moves beyond the familiar framing of India’s global ambitions as a contest between competing blocs. India’s engagement with the United States, the European Union, Russia, Iran, the Global South, and other partners reflects a more complex calculus, one rooted in economic resilience, strategic autonomy, and the pursuit of national interests across multiple theatres. Its growing relationship with the EU, for instance, illustrates how geopolitical uncertainty can create new opportunities for cooperation. Meanwhile, engagement with the Global South is shaped not only by trade and investment, but also by questions of climate justice, food and energy security, and reform of multilateral institutions.

A particularly compelling thread concerns the future of development finance. As traditional aid budgets face mounting pressure, countries across the Global South may need to transition towards a model in which investment, rather than assistance, becomes the principal driver of external financing. This raises difficult but necessary questions: how can developing economies leverage their markets, geography and natural resources? How can they reduce investment risk while improving governance and the terms on which capital reaches them? The discussion also examines India’s expanding overseas role, including the evolution of public-sector and private-sector engagement, the use of lines of credit, and the importance of designing financial instruments that translate into viable opportunities on the ground.

Underlying these geopolitical and economic questions is the often underestimated power of people. India’s global relationships have historically been shaped not only by governments, but by the movement of Indians across borders. As diaspora communities grow and become more established, their influence extends into business, politics, investment and public diplomacy. Yet this influence is not without complications. Emotional and cultural connections to India can shift across generations, while perceptions of the country are often shaped by experiences, sometimes decades old, that no longer reflect its current economic or technological reality.

The conversation closes by returning to the importance of informed engagement. India’s scale, diversity, democratic character and developmental challenges make it unlike any other major power. Its opportunities are significant, but so are the complexities. Dhruva Jaishankar’s book, Vishwajaya: India and the World, offers a broader framework for understanding that journey, bringing together history, policy priorities and further reading. Ultimately, this discussion reminds us that the future of global diplomacy may be shaped as much by the quality of relationships and understanding between people as by formal agreements between states.

Disclaimer: The perspectives expressed by the guest are their own and do not necessarily reflect those of our platform. This discussion is intended solely for knowledge sharing and should not be interpreted as an endorsement.

Produced by Global Indian Series for the Global Indian Network.

Script by Rajan Nazran
original idea: Rajan Nazran

Introduction music: (https://freesound.org/people/Timbre)