A research paper commissioned by Melbourne-based think tank Australia India Institute (AII) on 'Indian Foreign Policy Under (Prime Minister) Modi' pinpointed that economics was central to his thinking about foreign policy and that he was too pragmatic to be bound by ideology.

The study is part of AII's 'Fearless Nadia Occasional  Papers' focusing on various aspects of the relationship between India and Australia.

Citing that India's foreign policy is changing and becoming federalised, the paper said Modi was keen to legitimise the new emerging trend of states contributing to foreign policy matters that have been otherwise exclusive to the Centre.

The paper highlighted that Prime Minister Modi would build on his past record as the Chief Minister of India's fastest growing state Gujarat and make "India's Look East policy" as his priority.

However, for neighbouring countries like Pakistan and China, he may adopt more "muscular" approach, it said.

"Modi, a non north Indian, may treat Pakistan differently. He will be less willing to make concessions until and unless there is an end to what he has called cross border terrorism," the paper said.

"Unlike his immediate predecessors, Modi will bolster India's military strength so that it is a credible deterrent to Pakistani adventurism," the paper said, adding that under Modi, steps will be taken to improve the inadequate military infrastructure along the Indo-China border.

"Under Modi, security and defence will be important components of India's foreign policy. This military's inputs to foreign policy, particularly relating to China and Pakistan, will be given due weight," the paper said.

"Modi has often said his government will give primary to the modernisation of India's military forces, and that, in turn, will mean more arms, sourced both within India and abroad," it said.

Further arguing that Modi was "an unabashed champion of nuclear power and he would want to build more nuclear plants", the paper said that for this he would need nuclear fuel and thus countries like Australia would play an important role.

It further said that Modi would work on increasing exports, build its future on its strong information technology sector, and garner foreign investments and other business opportunities for India's entrepreneurs.

The paper also suggested that Modi who thinks Indian diaspora living overseas was a vast reservoir to articulate India's national interests and affairs globally, would harness this resource "to strengthen what he calls Brand India."

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