The "Effect of policies and politics of developed and developing countries on India's interests" is a concept in international relations and foreign policy, describing the external policy environment that shapes India's economic growth, strategic choices, and global standing. Its relevance intensified following India's economic liberalization in 1991 and the end of the Cold War, which increased its integration into the global economy and necessitated a shift from non-alignment to multi-alignment.
The mechanism works through distinct channels. Policies of developed countries, such as the United States and the European Union, primarily affect India through economic and regulatory norms. For instance, changes in U.S. visa regulations impact Indian IT professionals, while the EU's General Data Protection Regulation (GDPR) influences how Indian companies handle consumer data. Developed nations also dictate global norms on cybersecurity and intellectual property, with restrictions on technology transfer affecting India's indigenous defense production.
Policies of developing countries, especially in India's neighborhood, primarily affect regional trade and security. Policies in nations like Sri Lanka or Nepal influence cross-border trade and supply chains, while political instability or foreign alignments carry security implications for India's border and maritime interests.
This concept connects to India's strategic policies like the Neighbourhood First Policy and the Act East Policy. In multilateral forums, India aligns with developing countries at the United Nations Framework Convention on Climate Change (UNFCCC), demanding finance from wealthier nations. A recent change is the rise of protectionism and economic nationalism globally, which has led India to focus on resilience and domestic capacity building, exemplified by the Atmanirbhar Bharat initiative.