The Indian experience of region building as a way to counter competitive regionalism in the Asia-Pacific region and the Middle East

Belkov Aleksandr Dmitrievich ORCID: 0009-0003-7843-6656 Student, Department of Comparative Politics, RUDN University named after Patrice Lumumba 6 Miklukho-Maklaya str., Moscow, 117198, Russia aleksanderbelkov@gmail.com Other publications by this author

Introduction

The Asia-Pacific region (APR) is the most promising and dynamic macro–region in the world. The initial approaches to its spatial definition have been gradually revised by modern political and geographical sciences. Initially, the Asia-Pacific region included only countries and continents that went directly to the Pacific Ocean, and mainly in the Northern Hemisphere. South America, Australia and part of Oceania, as well as Southeast and South Asia, did not belong to the Asia-Pacific region. However, four stages of trade and economic liberalization within the framework of the expansion of various integration mechanisms have led to the fact that institutions such as ASEAN, APEC, TPP, VREP, BRI, I2U2, IMEC, gradually covered a number of countries and even parts of the world that were not previously included in this region. The processes of regionalization and the gradual inclusion of different countries and regions in them led to the fact that by 2004 the Russian scientist A. D. Voskresensky, following a number of foreign researchers, expanded the concept of the Asia-Pacific region. He included South and Southeast Asia, which, along with East and Southeast Asia, Australia, as well as the Pacific coast of North and South America, form a single institutionally united developing "megaregion" ^{[1, pp. 408-426]}. Political scientist G. V. Toropchin adheres to a similar interpretation, calling it macro-regional ^{[2, p. 94]}.  Therefore, India is inseparable from the integration processes in the Asia-Pacific region and is an active participant in them.

In the 1990s. India had to go through two waves of modernization and a change in the vector of political and economic integration. She had to make her "turn" to the East, interacting with the countries of the Persian Gulf. At the same time, India has become one of the leaders of economic cooperation in the Asia-Pacific region and among the countries of the global South. It has qualitatively rebuilt the economy and has become interesting for trans-regional players. In this regard, it will be interesting to consider the Indian experience of regional and global integration, which shows impressive success.

The purpose of the study is to identify successful practices and methods that are used by India in the integration processes in the Asia-Pacific region and the Middle East at the present stage as a way to counter the increased Chinese influence.

The object of study is the integration processes in the Asia-Pacific region and the Middle East, and the subject is the modern regional construction of India on the example of the integration associations I2U2 and IMEC.

The relevance of the work is dictated by the complication of the geopolitical situation, which does not allow Russia to continue to be in the strategy of waiting for new prospects in Asia and requires the development of practical approaches that must be taken into account for its accelerated integration into the Asia-Pacific region.  

There is a large amount of theoretical and methodological developments that seem promising to apply to practice-oriented studies of the observed regionalization processes in the Asia-Pacific region. This is the novelty of the work.

Theoretical basis and methods

The research is based on the theory of new (open) regionalism and transregionalism ^[3-5], as well as the theory of regional security blocks by B. Buzan and O. Weaver ^[6]. The work uses statistical data analysis and a systematic approach ^{[7, pp.17-18]}, qualitative content analysis of official documents, political science press and Internet sources, as well as event analysis, induction and deduction methods, institutional and historical methods are used.

The global region, the Asia-Pacific region, is considered as a system.  The subsystems are integration associations and leading states involved in institution-building in the Asia-Pacific region. The elements of the subsystems are States and non-state actors. From the point of view of systems theory, elements and subsystems, as well as the system itself, strive for development through adaptation to new challenges. The leading states of the region, according to the theory of regional security blocs, build their policies based on securitization, which is understood more broadly than just security. This phenomenon is more complex and includes not only reducing the military threat, but also economic, social, environmental and other types of security. Based on this, they are looking for and finding partners. As a rule, there should be more than two states, and they should be fairly homogeneous in their presentation of foreign policy goals.    India's approaches are being studied, through which it adapts to external and internal challenges through integration efforts in the Asia-Pacific region and the Middle East.

The degree of development of the topic

The works of many authors are devoted to the integration policy of India in the Asia-Pacific region. Thus, political scientist N. B. Lebedeva examines the period from 1991, when India proclaimed a new course "Look to the East", and its evolution until 2012, and concludes that the extensive experience of bilateral and multilateral cooperation with the Asia-Pacific countries will allow India to rise to new heights of cooperation with partners and gain a foothold in the Asia-Pacific region ^[8]. S. I. Lunev justifies the status of India as a world power and considers it a global player in international relations ^[9]. E. A. Bragina pays attention to the creation and increasing role of special economic zones (SEZ) India to improve trade interactions in the Asia-Pacific region ^[10].  Economist N. V. Galishcheva in her research shows the ways of India's gradual integration into the world economy and concludes that in the coming years India will face accelerated development, increased flows of foreign direct investment, and a reorientation to innovative production ^[11]. A. G. Volodin analyzes India's regional integration in Asia, focusing on the increasing importance of foreign economic relations of India with Western Asia ^[12]. Yu. A. Ilyicheva examines India's security cooperation with the ASEAN countries and comes to the conclusion about India's strategic role in the Asia-Pacific region ^[13]. Indian scientist Mungreshang Khoram considers the strategy of the eastern vector of India's foreign policy as a great power, taking into account the influence of China, and India's approach to the QUAD block ^[14]. A team of researchers from the Indonesian Institute of Economic Research of ASEAN and East Asia in their report highlights the problems and challenges faced by traditional integration associations in the Asia-Pacific region at the present stage and come to the conclusion that it is necessary to rethink investment and trade chains, emphasizes the importance of this process and notes the strengthening of global competition for dominance in the field of new technologies ^[15]. L. K. Behera from the Special Center for National Security Studies at D. Nehru University analyzes the impact of the AUKUS association on India's strategy in the Asia-Pacific region ^[16].

The rapid development of new integration initiatives in the Asia-Pacific region, which is taking place before our eyes and has brought to life new regional construction on the part of India and its partners, shifts the focus of scientific attention to these important global political processes. However, there is a certain shortage of scientific research in this area at the present stage, which increases the relevance of this work.

The Chinese BRI Initiative is a catalyst for new regional construction

In September 2013, at the summit in Almaty, Chinese President Xi Jinping announced a new approach to trans-regional integration between different states and economic associations. It was based on the idea of a common destiny and prosperity based on the restoration of old and the formation of new international transport corridors (ITC). The project was called "One Belt, One Road". In modern research, the name BRI (The Belt and Road Initiative) or IPP (Belt and Road Initiative) has been fixed. According to official documents of the People's Republic of China, for the first time, institutional transformations on the path to global integration were based not on political, value or ideological approaches, but on a practical desire to improve the lives of hundreds of millions of people through the implementation of common transport, logistics and infrastructure projects ^[17]. Global trade, which already played an important integration role, has become another factor uniting countries with different political structures, value approaches, views on democracy and human rights. Ten years later, it can be stated that this initiative was able to overcome barriers between previously unprepared states and became a storehouse of successful technologies and approaches for the implementation of new modernization projects in the Asia-Pacific region. China's traditional geopolitical competitors and partners have also taken into account the experience of creating BRI.  These countries have put forward a number of global and regional initiatives in which India is actively involved.

India looking to the future

India has been continuously reforming since the mid-1990s. Despite its demographic and political potential, it has all the problems of a developing country. This is, first of all, hunger and lack of clean water, lack of energy. Millions of people are at risk of multidimensional poverty. Therefore, any Government of India is forced to respond to these national security challenges.  This largely determines its modernization and integration efforts, as well as its modern approach to foreign policy.

In 2014, Naredra Modi, who heads the Indian People's Party (Bharatiya Janata Party), which is based on the traditional values of Hinduism, came to power in India. He has launched a new strategic modernization project for the country's development. India has set a course for comprehensive national development and achieving the title of a great power. At first, the focus was on internal transformation and the new industrialization program "Make in India" was launched. For a traditionally agrarian economy, the task was set to increase the share of industry to 25% of GDP. In order to overcome internal barriers in the form of a caste system and cronyism in the economy, he carried out a number of administrative reforms that dramatically raised India in the "Doing Bisness" rating ^[18].  The tax and tariff systems have been streamlined.  This made it possible to attract non-state participants in transregional processes, such as TNCs and international financial institutions, to India within the framework of the "Make in India" program, which is a manifestation of the acceleration of globalization processes ^[19]. India's growing economy was in dire need of new industrial and transport and logistics facilities. They have been implemented as free economic zones (FEZ). In addition to preferential taxation, the Indian government has borne part of the costs of their creation. For the first time in the Asia-Pacific region, India has created a special mode of their functioning. Benefits for foreign investors were provided. All this, along with the guarantee of the state, caused an explosive growth in foreign direct investment. Their volume increased by 46% over the year and amounted to $56 billion from 2015 to 2016 ^[20]. This is usually followed by economic growth and regional integration, which we have had the opportunity to observe.

India's foreign policy has become a harmonious complement to its ambitious goals. In the Asia-Pacific region, after the launch of the Chinese BRI initiative, competition began among the leading powers for the formation of a new architecture in the field of security and economic cooperation. New regional platforms have been created to streamline this unstable region. India has made cooperation with developing countries the main focus of its foreign economic activity after the collapse of the USSR, an important economic partner. This was the so-called concept of turning to the East (Look East Policy) ^[21]. It was considered successful, but the changing conditions of competition in the Asia-Pacific region required adjustments. India has prioritized South–South cooperation, but at the same time diversified it by deepening cooperation with developed countries (Act East Policy) ^[22]. The country has initiated such inter-regional associations as IBSA (India, Brazil, South Africa) and BRICS, in which Russia is present. Within the framework of the Asia-Pacific region, New Delhi is an active participant in the Indo-Pacific QUAD Security Quartet (USA, Australia, Japan, India).

 At the same time, India remains a member of political integration associations such as the Group of Twenty (G20) and the SCO. New Delhi stands at the origins of the creation of the new I2U2 minilateral association (India, Israel, USA, UAE) ^[23], which is considered as the West Asian Security Quartet.  India's obvious activity in all these political clubs indicates a desire to achieve a balance with all the world's leading players. 

Traditional forms of integration, such as ASEAN and the East Asian Security Summit, do not satisfy the increased turbulence in the Asia-Pacific region. India proceeds from the provisions of "One Land, one family, one future" ("Vasudhaiva Kutumbakam") ^[24] and is ready to cooperate in the field of security and diplomatic interactions with all countries except its historical opponent, China. New Delhi is concerned about the strengthening of Chinese influence, which, due to the success of the BRI project, causes tension in bilateral relations with Beijing. Despite this, India's economic cooperation with China continues. In 2022, there were clashes between India and China over the disputed territory of Tawang. Although tensions have been reduced, India has felt vulnerable as neighboring countries such as Bhutan, Myanmar, Bangladesh, Nepal, Afghanistan, Iran and Pakistan have become politically attracted to China as a result of the BRI project.  In addition, Islamabad has territorial claims to New Delhi, which have repeatedly led to military conflicts. Currently, there are many models of regionalization operating according to the competing type of rival regionalism ^[25]. Its essence is that blocks are being created in which global players use cooperation as leverage for their own domination in another region. From the point of view of the theory of B. Buzan and O. Weaver, such a block can be considered as a separate subregion ^{[6, p. 15]}. As a rule, the State forming such a geographical group is connected with its participants by common political and economic goals. China has actually implemented the formation of a new regional association directly adjacent to India. In a sense, New Delhi found itself in sub-regional isolation and, in an effort to get out of it, it began to make new trans-regional efforts to strengthen its international position. India has changed its positioning from the status of a regional power to the position of an emerging global player. This was the reason for the implementation of projects aimed at West Asia (Middle East) and the European Union (EU). India also began to respond to American proposals for cooperation, including in the field of security. First, the QUAD alliance was created. Cooperation with Australia and Japan has increased. Then the I2U2 political union appeared ^[26], followed by the new IMEC transport, logistics and economic project. In general, India's long-term integration efforts have been crowned with success, its export portfolio is balanced and diversified (Figure 1). As can be seen from the figure, India's main export destinations are the markets of developed countries, and the premium markets of the Middle East (Persian Gulf countries) are becoming a very promising and rapidly growing vector. The IMEC project assumes that Turkey, Egypt and North African countries will join it in the future.

Figure 1. Distribution of India's export flows by country as a percentage of its total exports (as of December 2022). Created by the author based on Trading economics: India Exports By Country. URL:  https://tradingeconomics.com/india/exports-by-country

The abundance of integration platforms does not mean that they all work efficiently enough. This often applies to such associations as the various APEC formats, as well as the SAARC (South Asian Economic Development Organization). Sometimes the integration processes in them are complicated by political crises and the resulting decline in business activity. India usually cools cooperation with poorly functioning structures and countries. At the same time, she is always looking for an alternative.  Therefore, it is important to consider the experience of the development of the I2U2 security initiative, which quickly moved into the plane of specific, implemented IMEC economic projects.

IMEC is a possible strategic alliance

The India-Middle East–Europe (IMEC) Economic Corridor project, created at the I2U2 summit in July 2022, has become a natural development of long-standing security and international trade relations between India, the United States, the EU, the Persian Gulf countries and Israel.

Also, the largest European economies - Germany, France and Italy - became separate parties to the agreement. The agreement is based on improving communications between India and the Gulf countries, on the one hand, and the consumer of raw materials and goods represented by the EU, on the other hand. The Middle East has historically been a conflict region. The current events surrounding the shipping crisis in the Red Sea only confirm the need to search for alternative transport and logistics routes. To a certain extent, this project is opposed to the Chinese BRI initiative, although its creation can also be explained by the natural desire of states to ensure the security of global supplies in the territories controlled by the allies.

The structural parts of IMEC are the Eastern Corridor linking the Persian Gulf and India, and the Northern Corridor extending from the Persian Gulf to Europe through Saudi Arabia, Jordan and Israel ^[27]. These are multimodal transportations involving the port structure, railways, highways and transport and logistics parks. It should be noted that the level of infrastructure readiness is very high.

Investments are needed to implement these projects. The UAE was a major investor. So, on February 13, 2024, an investment bilateral agreement was signed between India and the UAE ^[28]. The amount of investments was not disclosed, but it is known that the UAE considered about $50 billion as a possible investment in India. ^[29]. The first projects within the framework of the emerging IMEC began as early as 2022. In addition to the construction of transport infrastructure, it is planned to ensure energy security, solve the problem of hunger and lack of clean water, and cooperate in the field of space and healthcare ^[27]. These are the issues that concern India and its Arab partners. The program is based on the creation of huge food parks, green energy and innovative digital technologies. The technology is supposed to be imported from the USA and Israel. In Indian Gujarat, next to the port structure, it is planned to build a modern power plant in which solar and wind energy will be stored in special storage batteries ^[30]. European and EU countries profit from the provision of their ports and infrastructure, from transport and logistics operations and reduce delivery time and operational costs for it. In the two years since its inception, the I2U2 and IMEC initiatives have produced the fastest results in terms of integration processes. Indian scientist Manjari Singh believes that they have the potential to become strategic ^[31]. This is a concrete example of cooperative integration, where each partner, using their capabilities and resources, receives measurable economic benefits. Therefore, the project has attracted the interest of trans-regional players and has great prospects for final implementation. The positive effects of the minilateral alliances based on a common understanding of security and mutual economic interests have been fully manifested here. Experts also point to the increasing role of such associations in the system of international relations ^[32-33].

Conclusion

India's experience attracts attention by the fact that in the context of a rapidly changing world order, the country acquires new opportunities through modern regional construction. Having reduced the chances of actively interacting with its closest neighbors and having received a fairly hostile environment, India, using diplomacy, global trade and military-political cooperation, finds new partners, finds new markets for its goods, and actively participates in integration through the promotion of its own transport and logistics projects. At the same time, the state pursues an independent policy, maintaining a balance between North and South, East and West. India successfully uses the approaches of cooperative regionalism and transregionalism, as well as all inter-regional platforms for cooperation. Minilateralism helps to find vectors of interaction and open the way to further development. Of course, obstacles may arise in the way of any integration project against the background of growing international instability. The cooperative approach and the economic component will encourage finding ways to solve crisis situations through mutual consideration of interests, which is still possible.   

 From the point of view of the theory of regionalism, a country actively participating in regional and global integration has better prospects for further successful development than countries that do not show such activity and do not put forward their sought-after initiatives. The skillful use of the practice of new regional construction helps the country to consolidate its leading position. In this regard, India's integration experience is of great practical importance, both for Russia and for other countries.