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How India’s Development-centric approach to Central Asia marks a shift

14/06/2025

Changing Contours of Indian Outreach to Central Asia: An Indian shift in Central Asian policy is characterized by the deployment of development, connectivity and soft power, as opposed to the conventional geopolitics, and it is now based on sustainable and partnership-oriented diplomacy.

india-development-centric-approach

There has been a sea change in the nature of India Central Asia interaction which was earlier based on reactive and security oriented diplomacy to a proactive and development oriented partnership model. In the past, Indian interests in the region were anchored on issues such as counterterrorism, energy security, as well as great power competition. However, with the transforming global power equation and the centre-stage positioning of regional connectivity New Delhi has adjusted its strategy to focus on inclusive development, digital innovation, and people-centric diplomacy. This change is indicative not only of Indian interest in becoming a positive stakeholder in Eurasian stability but also of the Indian realization that soft power, capacity-building and sustainable cooperation represent more lasting leverage than hard diplomacy per se. By making well-calculated infrastructure investments, such as the Chabahar Port and the International North south Transport Corridor (INSTC), and projects in education, health, and digital connectivity, India is writing a new chapter in Central Asia, where trust, transparency, and mutual development are the foundation of relationships. The Article gives insight into the reasons, tools, and consequences of this change by claiming that the development-focused approach to relationships in India provides an alternative framework of regional cooperation, which has a different feel and intent than other prominent powers.

Historical Context and Strategic Interests

Century-old cultural, spiritual, and trade connections form the basis of India relations with Central Asia, which existed before the establishment of modern-day diplomacy and still define the interactions of the present century.

The Legacy of the Silk Road

India and Central Asia have a long history of connection stretching back along the Silk Road, a vast system of trade routes that did not only contribute to the movement of goods, such as silk, spices, and horses, but also ideas, religions, and philosophies. Buddhism was spread in India to the north, and its influence may be seen in such cities as Merv, Termez, and Samarkand in the form of stupas and monasteries. The contacts formed the basis of a trans-border civilizational ethos.

Dynasties and Diasporas

People and power continued to flow more between the two regions during the medieval period. An example of this blend is the Mughal Empire established by Babur of Fergana Valley. Scholars, poets and Sufi mystics of Central Asia Al-Biruni and Amir Khusrau among others contributed to the intellectual and cultural life of India. These interactions led to a tradition of syncretism, which is echoed in the Indo-Persian art, architecture and literature to this day.

Soviet Era and Post-Independence

India has always enjoyed warm relations with the Soviet Union including the Central Asian republics during the times of the Cold War. There was flourishing of cultural diplomacy- Indian cinema, music and literature were greatly received in such cities as Tashkent and Almaty. But with the collapse of the USSR in 1991, India lost interest in the newly independent Central Asian countries due to geographic isolation and new strategic priorities.

Resurrection via Policy Reorientation

A slow, but conscious revival came in the early 2000s. In 2012, India unveiled the policy of “Connect Central Asia”, which sought to revive India-Central Asia historical connections in the fields of education, energy and culture. Though the early gains were small, they formed the basis of the more development-oriented formula that characterizes the Indian strategy today.

The Shift: Development as New Diplomatic Currency

India involvement towards Central Asia has changed in terms of strategic jostling to a more encompassing development oriented policy one that emphasizes on connectivity, capacity-building and long Run regional integration.

Strategic Balancing to sustainable partnership

India has a long history of being in Central Asia driven by geopolitical equations, fighting extremism, protecting energy corridors, and power. This reactive position has however been replaced by a proactive model of development. India is also rebranding itself as a reliable developmental ally, emphasizing on mutually beneficial development as opposed to the zero sum games.

Catalysts: Infrastructure and Connectivity

One of the pillars of this change has been India investment infrastructure in the region. The Chabahar Port in Iran and the International North-South Transport Corridor (INSTC) do not merely represent trade routes, but they are also synonymous with the dedication of India to regional integration. The projects will provide the Central Asian countries with a linkage to the world markets without going through geopolitical chokepoints.

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Financial Integration and Digital Diplomacy

Central Asia is being offered an extension of India digital public infrastructure, such as India Stack and Unified Payments Interface (UPI), as digital cooperation is pursued more widely. Interbank connectivity agreements and national currency trade were among the important deliverables of the 4th India-Central Asia Dialogue as it marks a move towards financial sovereignty and inclusive growth.

An Alternative to BRI

In contrast to the Belt and Road Initiative of China, the development diplomacy practiced by India is characterised by transparency, local ownership and the respect of sovereignty. This strategy appeals to the Central Asian countries which are interested in diversified relations without debt trap and political conditionalities.

Strategic Reasons to Change the Shift

The shift of India to a more development-oriented policy in Central Asia is not just a diplomatic rebranding exercise this is indicative of broader strategic Imperatives due to changing regional relationships.

Opposing the Growing Chinese influence

The Belt and Road Initiative (BRI) of China has consolidated the economic and infrastructural presence of Beijing in Central Asian countries. The model of development-driven by India presents an alternative that is non-coercive, seeking to offset the predominance of China without having to mirror its debt-seeking approaches. India can present itself as a more trustworthy and culturally compatible partner by enhancing transparent projects that are locally owned.

The acquisition of Energy and Critical Mineral

Central Asia abounds in hydrocarbons and rare earth elements, resources critical to Indian energy security and technological aspirations. Strategic engagement is a secure supply of oil, gas, and rare minerals, limiting excessive dependence on unstable markets. During the 4th India Central Asia Dialogue, the interest of India in joint exploration and investment in the rare earths was reiterated.

Manoeuvring the Afghanistan Factor

The renewed Taliban has changed the dynamics. The Central Asia development diplomacy is a buffer policy by India to strengthen its relations with its neighbours to avoid the risks of spill over. Such infrastructure development initiatives as the Chabahar Port and the Zaranj Delaram road in Afghanistan fall within this wider security equation.

Strengthening the Eurasian Identity of India

In strengthening its relationship with Central Asia, India is extending its claim beyond the South Asian region, to that of a Eurasian stakeholder. It is part of its larger foreign policy vision of an Extended Neighbourhood, its increased presence in multilateral forums such as the SCO and BRICS and a stronger say in global governance.

Soft Power and Cultural Diplomacy

The development-focused Indian outreach to Central Asia is greatly augmented by its soft power, an intangible, but a powerful goodwill, culture, and long-term diplomatic currency.

Bollywood and the Cultural Imagination

Central Asian moviegoers have been long fascinated with Indian cinema and Bollywood in particular. Since the times of legend Raj Kapoor to the modern day heroes, Indian cinema has created an image of a nation that is vibrant, emotional and cultured. Cultural shows, film festivals and screenings have become emotional diplomacy instruments, closing the gap created by linguistic and political barriers.

Yoga, Spirituality and Common Heritage

India spiritual traditions, especially yoga, Ayurveda and meditation find a keen response in Central Asia, where ancient traces of Buddhist and Vedic cultures had prospered. These common origins have been rediscovered through the regular celebration of International Yoga Day in such cities as Tashkent and Bishkek. The practices are non-political bridges that build people-to-people relationships away into statecraft.

Education and Academic Exchange

India has increased its presence in education through scholarship, technical training and university collaboration. Central Asian students study in institutions such as Jawaharlal Nehru University and Delhi University and other Indian universities are considering satellite campuses in the region. These programs help build the bridges of the future diplomacy in terms of alumni networks and academic cooperation.

Difficulties and Constrains

Although India has regained its development-oriented orientation, its relations with Central Asia still experience structural, geopolitical, and logistical challenges that still limit the achievement of its strategic potential.

Physical Barriers of Geographical Isolation and Conductivity

The fact that India does not share direct land borders with Central Asia is a factor that forms a basic hindrance. The conventional overland routes go via Pakistan and Afghanistan both of which are full of political and security headaches. Although Chabahar Port and INSTC provide alternative routes, the effectiveness of their work remains to be developed, which restricts the smooth trade and transiting.

The Strategic Depth and Economic Dominance of china

It is formidable challenge of China being entrenched via the Belt and Road Initiative (BRI). Beijing has enjoyed the benefits of penetrating economic integration with the Central Asian republics due to its huge investments in infrastructure as well as financial leverage. With its relatively limited resources and more reserved diplomacy, India finds it hard to keep up with the size or the pace of China.

belt-and-road-initiative

Regional Security Volatility

The instability in Afghanistan and the larger region does keep a long shadow on Indo-outreach. The renewed presence of the Taliban, cross border terrorism and drug trafficking make the situation very unpredictable and therefore does not make it easy to plan and invest in the trans-regional projects on a long-term basis.

Bureaucratic Friction and Low Trade Volume

And yet, with the diplomatic momentum, the trade between India and Central Asia is yet to cross the $2 billion mark, which is way off the potential. Project implementation is hampered by regulatory requirements, language barrier and the low involvement of the private sector. There is also red tape and poor implementation of policy which further destroy the confidence of the investor.

Gaps in Culture and institutions

Although soft power is strength, more substantial institutional connections, including think tank relations, joint research and policy coordination remain immature. In the absence of strong institutional structures, the initiatives of India may as well be symbolic and not substantive.

Policy Recommendations and Future Outlook

The development-oriented approach towards Central Asia by India has colossal potential, yet harnessing its full value will need forward-looking strategic thinking, institutional creativity, and long-term commitment of resources in diplomacy and economic affairs.

Enforcing Multimodal Connectivity and Trade Corridors

India needs to hurry up the process of operationalizing the International North-South Transport Corridor (INSTC) and the Chabahar Port with easier customs formalities and multimodal connectivity. The efficiency of regional trade may be improved by supporting Uzbekistan and Turkmenistan access to INSTC and using the TIR Convention.

Enhancing Financial and Digital Interpenetration

The diversification of digital payment systems, interbank collaboration, and national currency trade will minimize the reliance on the third-party financial systems and create economic independence. India ought to make a Joint Working Group on Financial Connectivity institutionalized to facilitate smoother banking systems and fintech cooperation.

Green Energy and Critical Minerals Investment

India needs to accelerate the deals on rare earths exploration and green energy collaboration, as it satisfies its national energy transition targets. The Central Asian mineral wealth can be realized through joint R&D and public private partnership, which will also enhance sustainable development.

Using Multilateral Platforms

India can take advantage of its Presidency in such groups as SCO, BRICS, and G20 to promote inclusive regional growth. A specific India-Central Asia Development Fund can be created to institutionalize the assistance in terms of infrastructure, health, and education.

Conclusion

To sum up, the development-oriented approach of India towards Central Asia denotes a revolutionary change of reactive diplomacy to the proactive partnership-building based on mutual development and stability in the region. Through attention to infrastructure, digital integration, education, and cultural exchange, India presents an exciting alternative to the established power politics and economic coercion. Such a strategy will not only expand Indian strategic presence but also make it a reliable and value-based partner that shares the vision of Central Asian republics. There are still obstacles to overcome, including geographical limitations as well as regional instability, but with India showing no signs of abandoning its policy of transparent, inclusive growth, it is investing in Central Asia’s future over the long term. With the changing geopolitical environment, it is quite possible that the Indian style of engagement, based on soft power and mutual prosperity could become a paradigm of 21st century regional relations. The future is complicated, yet the seeds being sown now hold the promise of transforming how India will relate to the Eurasians in the decades to come.

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