International Journal of Humanities and Social Science Research

Authors
Shagun Sharma

Abstract
Close linkages can always be observed between the foreign and domestic policies of a country. Several significant shifts took place in the economic policies pursued by India after its independence. Most of these had their reflection in the external policy as well. In this paper we try to see such linkages in the period prior to 1991. Historically, the evolution of the Indian state has been an important factor in determining the priorities and shifts in its foreign policy. The changing nature of the Indian state has significant influence on the economic regime, with implications for its Third World policy. India, being a middle ranking economic power, articulated the demands of the Third World and argued in the behalf of the entire group. Through collective bargain, India demanded a just international economic order. Until the early 1980s, India had been able to resist external pressures, though in a limited way, by mobilizing countries in the Third World. Within the NAM and the G-77 at the UN, India took the lead in articulating the need for ‘collective self reliance’ and raising the demand for a restructuring of the international economy to suit the needs of the developing countries.