India's Dual-Track Economic Diplomacy: Mini Lateral Engagement vs. Bilateral Trade Agreement in the Indo-Pacific

Abstract

This research paper examines India's evolving economic diplomacy in the Indo-Pacific, driven by a "dual-track" approach of mini lateral engagements (Quad, I2U2) and bilateral agreements. It analyses the operational and functional differences between these approaches, highlighting how India leverages each to achieve distinct objectives, from addressing comprehensive regional security issues to promoting trade and investment. The study employs a mixed-methods approach, integrating insights from policy documents and trade and investment data from Ministry of Commerce and Industries and the World Trade Organisation. The research paper also assesses the impact and implications of India's engagements leveraging the Bilateral talks, relying on trade-offs from Mini lateral engagements. Findings indicate that mini lateral platforms amplify India's diplomatic influence and provide leverage in bilateral discussions while introducing complexities that require careful management. Geopolitical alignments and economic complementarities condition India's strategic choices. Ultimately, the success of India's economic diplomacy depends on its ability to effectively manage these trade-offs and leverage its mini lateral and bilateral engagements in a complementary manner to navigate the complex dynamics of the Indo-Pacific.