Any discussion on India's foreign policy has to begin with the contribution of Mahatma Gandhi, who introduced an element of moral, value based politics in our lives. It was not simply tactical in nature but a code of behaviour for the conduct of international relations by successive Indian governments. It is, therefore, no surprise that our external relations have been characterized by the basic tenets of Panchsheel. Peace, disarmament, self-reliance, non-alignment and development are the bedrock of India's relations with other nations, and determine its reactions to external developments. Another bedrock of Indian foreign policy is the element of consensus on vital foreign policy issues, transcending party affiliations, and including political parties, diplomats, academics and opinion-makers alike. 

While there is an undercurrent of continuity in India's foreign policy, its terms of reference have been undergoing a continuous change against the background of far-reaching, and sometimes, volatile changes in the global scenario. Some of the predicaments facing India are the challenges to the concept of the nation-state from linguistic, ethnic and religious groups, on-going changes in the external equations and in the nature of global developmental and economic policies, trade and financial regimes, and the scourges of terrorism, often exported from other countries, as well as the menace of drugs and arms-trafficking and their links with terrorist and criminal outfits. Environmental conservation, protection and promotion of human rights, and disarmament have rightly assumed great importance in the world. While on some of these issues, India may have treaded a somewhat lonely path for sometime, gradually others are veering around to our approach. The vision of a world free from inequities, violence, and devoted to economic and social uplift of humanity, so eloquently captured by the World Summit on Social Development, has to be realized. We are willing to cooperate with all in this endeavour, but will never tag ourselves in advance to others, or to a particular world-view. We retain the independent stance of our foreign policy, examining each issue on its merits, while being guided by our vital national interests and concerns. 

A process of introspection is currently underway in our societal, economic and political structures, which will redefine a vibrant, dynamic and open India, at ease in its interactions with the world at large. India's foreign policy has assumed a positive outward orientation with new policy initiatives aimed at consolidating traditional relationships, developing new relationships with countries and regions where We have vital strategic interests, a greater emphasis on economic dimensions in foreign policy, on the need to revitalize the Non-aligned Movement and to reform and restructure the UN to better reflect the aspirations of the developing countries. 

India attaches the highest importance to developing cordial and friendly relations with her neighbours with a view to promoting peace, stability, mutual confidence in the region, and for developing strongly r economic and commercial relations for all-round prosperity I have myself visited several countries of our region, soon after our government assumed charge. We wish Pakistan all the best and have suggested the resumption of foreign secretary-level dialogue to address all issues of mutual concern. The Simla Agreement provides the basis for constructive dialogue. As Chairman of the South Asian Association of Regional Cooperation (SAARC) it would be our endeavour to promote multi-faceted cooperation in all spheres with our neighbours. 

China remains of great importance to our economic and security interests. Both of us decided to delink the settlement of the boundary question from the development of cooperation and exchanges in other fields. A number of confidence building measures have been put in place along the Line of Actual Control. 

India's relations with the Central Asian peoples are venture old, with considerable social, cultural, intellectual and commercial interaction. Their emergence as independent countries, boasting of secular, pluralistic, modern societies, engaged in a revolutionary reforms programme is a matter of profound historical significance. Similar ideals and experiences lie behind the convergence lie our perspectives on developments in the region and on International issues that have- come to the tore alter the end of the cold war. The large number of high-level exchanges in both directions, and conclusion of agreements and institutional arrangements in diverse fields, provide the impetus for the growth of our relations in modern times. 

India had never believed in the Cold War ethics. We were resolutely opposed to those forces that sought to align the world into competing and adversarial camps. The end of the Cold War and dramatic developments, changing the relationship between the Russian Federation and the United States, changes of governments and the systems of governance in Eastern Europe and the positive interaction between Russia and China, have opened up new vistas for Indian foreign policy. We have restructured our policies to encompass these changes, without losing continuity and balance, while firmly safeguarding our interests. 

Indo-US relations have expanded remarkably over the last few years. It is but natural, given our commonalties as pluralistic democracies. Economic reforms in India have provided a further fillip to this process. Trade and investment are now a cornerstone of this revitalized Indo-US relationship. Last year, Indo-US trade demonstrated an increase of over 19%, the total turnover exceeding US $9 billion. US companies account for over one third (38%) of the total foreign investment commitments in India, and almost 20% of the actual direct investment flows. The figure would he higher still if indirect portfolio investments were taken into our occasional differences - such as over the Comprehensive Test Ban Treaty recently - which become the focus of attention by our media and political opinion in both countries. But given goodwill and mutual respect, there is no reason why we should not he able to overcome any ephemeral differences. 

India's relations with the Russian Federation are characterized by friendship and cooperation, based on trust and confidence. Our effort is directed towards retaining the positive elements of the old relationship while making adjustments as necessary, in a dynamic and forward-looking manner to the changed situation in troth countries and the world at large. The evolution of Russia, and indeed other countries of the Commonwealth of Independent States, towards democracy and political pluralism on the one hand, and towards market-oriented structures giving freer play to private enterprise and initiative on the other, are evocative of the similar choices which we had earlier made in India, since our independence. This has reinforced the similarities in our outlook and brought us closer together in terms of basic values and orientations. The dissolution of the Soviet Union had occasioned some temporary dislocation in our bilateral relations with Russia and the other emerging newly independent states. This phenomenon was, of course, not unique to India but affected Russia's relations with other countries as well. It is, however, worth nothing that there was no diminution, on either side, of the desire and commitment to strengthening the bilateral relationship. Indeed, this was, and remains a matter of priority and national consensus in both India and Russia. Today, our relations are firmly back on the right track and have resumed their growth path. 

The growing political and economic integration of Europe has also been adequately addressed. India has concluded a third generation agreement with the European Union and looks forward to continued development of commercial and economic relations with it. Bilateral relations with European countries also demonstrate a positive increase in both quality and range. 

Geography predetermines India having close and cooperative relations with the countries of the Association of Southeast Asian Nations (ASEAN), Central Asia and the Asia-Pacific region. We have succeeded in expanding stable, friendly, cooperative and diversified relations with them. The steady growth in India's interaction with ASEAN is a matter of great satisfaction. In recent years we have moved progressively closer to ASEAN with the commencement of our Sectoral Dialogue Partnership in 1992 to our Full Dialogue Partnership with them and participation in the ASEAN Regional Forum. Further development of the Indian Ocean Rim Initiative will also reinforce these relationships. 

Regional groupings are gradually becoming the motive forces of economic growth and prosperity of their areas. India has moved forward to crystallize and strengthen existing bonds, w bile forging new ties. Africa and India have a special and abiding relationship. We have, in the past, struggled together to overcome the evil legacy of colonialism, racial discrimination and economic exploitation. We stand together today to face the demanding agenda before the developing world. A high level ministerial delegation was therefore sent by the prime minister to the Organization of African Unity (OAU) Summit held in July 1986, in Yaounde, Cameroon. India is also engaged in building up of relations of partnership and cooperation with other African regional organizations like the South African Development Community; the Economic Community of West African States; COMESA; UNECA and the African Development Bank. 

The development of relations between India and Latin America and the Caribbean countries and their regional organizations is a matter of considerable priority for us. A special envoy of the Indian Prime Minister participated at the Caribbean Community (CARICOM) Summit in Barbados in duly this year. We have institutional arrangements with the Rio Group and the MERCOSUR. India also plans to reinvigorate and revitalize its links with the Organisation of American States. 

Fundamental changes in international relations following the end of bloc-confrontation have contributed to an increased focus on international organizations and particularly the United Nations. It is accepted by all that the United Nations should be restructured, reformed, revitalized and strengthened to enable it to respond better to the aspirations of its membership. We desire to reinforce the role of the UN in development and development cooperation, coupled with a genuine democratization of the world organization. It is imperative also to ensure that in the process of reforms, existing mechanisms that have proved beneficial to the developing countries are not sacrificed on the altar of financial efficiency or crippled with a lack of resources. The representative and democratic character of the UN as the sole universal organ, needs to be enhanced. The representation of developing countries in the Security Council, both as permanent and non-permanent members has to he substantially augmented. Convinced of the support of others, we have expressed our readiness to serve as a permanent member of the expanded UN Security Council. On any objective criteria some countries would qualify for being permanent members of the Security Council. It is our belief that India would be among them. 

Effective global security today demands a universal approach. True peace also requires disarmament. We have concluded treaties for eliminating chemical and biological weapons; it is now necessary to deal similarly with nuclear weapons, the last remaining category of weapons of mass destruction. We visualised the Comprehensive Test Ban Treaty as part of a step-by-step process of global nuclear disarmament, leading to the complete elimination of all nuclear weapons within a reasonable time horizon and to meet the objective of ending the qualitative development of nuclear weapons. While it was not possible for India to subscribe to a treaty, which did not meet these objectives, we will not waver in the pursuit of our goals. 

Lastly, before I conclude, I would like to refer to an area that has assumed the greatest importance in India's foreign policy. This is the need to revitalize our foreign policy's economic dimension. India has embarked on a process of economic reforms and liberalization. We seek partnership for technology, finance and markets. The Indian government proposes to attract around US $10 billion of foreign direct investment in the coming year. We are committed to transparency and facilitation of foreign investment in crucial sectors. A new Foreign Investment Promotion Council has been established and the Foreign Investment Promotion Board reconstituted. We are cognizant of the need to tap markets for our goods, and to assure inflows of capital, technology, information and other resources to further enable the developmental process of India. I trust that cooperation of our foreign partners would be forthcoming in this venture.