India’s global development approach faces several criticisms. Critics highlight India’s paradoxical position as both donor and aid recipient
India stands as a unique player in the global development landscape. This South Asian nation simultaneously serves as both a major aid recipient and an emerging donor. With 1.4 billion people and the world’s fifth-largest economy, India actively shapes development approaches worldwide. However, its complex domestic challenges influence its international engagement in distinctive ways.
Development Philosophy and Approach
India champions “development partnerships” rather than traditional aid. This approach emphasizes mutual benefits and respect for sovereignty. Furthermore, India explicitly rejects the donor-recipient dynamic common in Western aid models. Instead, the country focuses on knowledge exchange and capacity building.
South-South cooperation forms the cornerstone of India’s development strategy. The country shares its own development experiences with other Global South nations. For example, India’s Green Revolution expertise helps African countries improve agricultural productivity. Similarly, its digital governance solutions support public administration reforms across developing regions.
Technical Cooperation and Capacity Building
India excels in technical cooperation programs. The Indian Technical and Economic Cooperation (ITEC) Program, launched in 1964, remains a flagship initiative. Through ITEC, India provides training to thousands of professionals from developing countries annually. Additionally, Indian experts serve in advisory roles across Africa, Asia, and the Pacific Islands.
Digital development represents a particular strength in India’s cooperation portfolio. The country actively exports its digital public infrastructure models worldwide. For instance, the Unified Payments Interface (UPI) and Aadhaar identity system have been adapted for several developing nations. Consequently, these technologies help countries leapfrog traditional development stages.
Regional Development Leadership
India prioritizes its immediate neighborhood for development partnerships. The “Neighborhood First” policy directs substantial resources to South Asian countries. For example, India provides Bhutan with nearly 60% of its development budget. Similarly, Afghanistan received billions in Indian development assistance before the 2021 regime change.
Infrastructure development forms a key component of regional engagement. India has built highways in Afghanistan, railways in Sri Lanka, and dams in Nepal. Moreover, the country offers generous lines of credit for infrastructure projects throughout the region. These investments strengthen regional connectivity while expanding Indian influence.
Global Development Initiatives
Beyond its region, India has expanded development cooperation significantly. The India-Africa Forum Summit led to billions in commitments across the African continent. Additionally, India provides substantial pharmaceutical support globally, earning recognition as the “pharmacy of the developing world.”
Climate action increasingly features in India’s international engagement. The International Solar Alliance, co-founded with France, unites over 120 countries to promote solar energy adoption. Furthermore, India has pledged to share clean energy technologies with developing nations. These initiatives highlight India’s growing leadership on global challenges.
Criticisms and Challenges
Despite meaningful contributions, India’s development approach faces several criticisms and internal contradictions.
Domestic Development Paradox
Critics highlight India’s paradoxical position as both donor and aid recipient. The country still faces significant domestic poverty and development challenges. In fact, India ranks 132nd on the Human Development Index despite being a G20 economy. This contradiction raises questions about resource allocation priorities.
India’s limited development budget constrains its global impact. The country spends less than $2 billion annually on international development assistance. Meanwhile, traditional donors like Japan and Germany each contribute over $15 billion yearly. This funding gap limits India’s ability to fulfill ambitious commitments.
Geopolitical Motivations
Strategic interests often drive India’s development partnerships. Critics argue that geopolitical competition with China, rather than development impact, determines project selection. For instance, Indian port projects in Iran, Sri Lanka, and Bangladesh directly counter Chinese maritime influence. Consequently, development outcomes sometimes become secondary considerations.
Regional politics frequently influence aid decisions. For example, assistance flows increase to countries supporting India in international forums. Meanwhile, political disagreements can interrupt development cooperation entirely. This explicit linkage between politics and development assistance undermines effectiveness.
Transparency and Accountability Issues
India’s development cooperation lacks institutional coherence and transparency. Unlike traditional donors, India has no dedicated development agency. Instead, multiple ministries and agencies implement projects with limited coordination. Furthermore, comprehensive data on India’s development spending remains unavailable.
Monitoring and evaluation systems need significant improvement. Project outcomes receive insufficient independent assessment. Additionally, local stakeholders have limited opportunities to influence project design. These governance gaps reduce development effectiveness and sustainability.
Tax Policy Contradictions
India’s tax policies affect global development efforts in complex ways. On one hand, India advocates for fairer international taxation at forums like the G20. On the other hand, domestic tax incentives sometimes facilitate profit shifting by multinational corporations.
Special Economic Zones (SEZs) provide generous tax holidays and exemptions. While these zones attract investment, they also reduce government revenue for social spending. Moreover, they can create uneven development patterns that exclude vulnerable communities.
Tax treaties with developing countries occasionally favor Indian companies. These agreements sometimes limit source taxation rights for host countries. As a result, developing nations may lose crucial revenue from Indian investments. This situation contradicts India’s broader commitment to equitable development partnerships.
Looking Forward
As global development challenges grow increasingly complex, India’s approach continues to evolve. The country recently established a new development partnership administration to improve coordination. Additionally, India has expanded trilateral cooperation with traditional donors like Japan and the United States.
Climate finance presents both challenges and opportunities for India’s development leadership. The country advocates for climate justice and differentiated responsibilities. However, India must balance these positions with its own transition to clean energy. This tension will shape its development partnerships moving forward.
Digital cooperation offers India’s most promising avenue for development leadership. The country’s affordable technology solutions address critical needs across the Global South. By scaling these innovations through international partnerships, India could significantly accelerate sustainable development worldwide.
Despite valid criticisms, India’s development approach provides valuable alternatives to traditional models. The emphasis on mutual learning, sovereignty, and capacity building resonates with many developing nations. Furthermore, India’s own development journey offers relevant lessons for countries facing similar challenges.
India’s future role in global development will likely blend pragmatic self-interest with genuine solidarity. By addressing institutional and transparency weaknesses, India could enhance its development impact substantially. Meanwhile, its voice in international forums will continue to represent developing country perspectives on global challenges like climate change, trade, and technological transformation.
India
Republic of India
Bhārat Gaṇarājya
Population
1,399,179,585 (2023 est.)
1,339,330,514 (2021)
1,326,093,247 (2020)
1,281,935,911 (2017)
Capital: New Delhi
Internet country code: .in
Government
National Portal of India: india.gov.in
Ministry of Tourism: incredibleindia.gov.in
Open Government Data Platform India: data.gov.in
UN
UN India: india.un.org
UNICEF India: unicef.org/india
UN Women India: asiapacific.unwomen.org/en/countries/india
Background
The Indus Valley civilization, one of the world’s oldest, flourished during the 3rd and 2nd millennia B.C. and extended into northwestern India. Aryan tribes from the northwest infiltrated the Indian subcontinent about 1500 B.C.; their merger with the earlier Dravidian inhabitants created the classical Indian culture. The Maurya Empire of the 4th and 3rd centuries B.C. — which reached its zenith under ASHOKA — united much of South Asia. The Gupta dynasty (4th to 6th centuries A.D.) ushered in The Golden Age, which saw a flowering of Indian science, art, and culture. Islam spread across the subcontinent over a period of 700 years. In the 10th and 11th centuries, Turks and Afghans invaded India and established the Delhi Sultanate. In the early 16th century, the Emperor BABUR established the Mughal Dynasty, which ruled large sections of India for more than three centuries. European explorers began establishing footholds in India during the 16th century.
By the 19th century, Great Britain had become the dominant political power on the subcontinent, and India was seen as the “Jewel in the Crown” of the British Empire. The British Indian Army played a vital role in both World Wars. Years of nonviolent resistance to British rule, led by Mohandas GANDHI and Jawaharlal NEHRU, eventually resulted in Indian independence in 1947. Large-scale communal violence took place before and after the subcontinent partition into two separate states — India and Pakistan. The neighboring countries have fought three wars since independence, the last of which was in 1971 and resulted in East Pakistan becoming the separate nation of Bangladesh. India’s nuclear weapons tests in 1998 emboldened Pakistan to conduct its own tests that same year. In 2008, terrorists originating from Pakistan conducted a series of coordinated attacks in Mumbai, India’s financial capital. India’s economic growth after economic reforms in 1991, a massive youth population, and a strategic geographic location have contributed to the country’s emergence as a regional and global power. However, India still faces pressing problems such as extensive poverty, widespread corruption, and environmental degradation, and its restrictive business climate challenges economic growth expectations.