External Affairs Minister Sushma Swaraj on Friday said dealing with Pakistan had been “most challenging” in the last 18 months since the Narendra Modi government came to power, even as she emphasised that under her the focus of diplomacy has shifted to economics.

“Ties with Pakistan have predictably been the most challenging to take forward. However, the recent NSA-level dialogue on security and terrorism and the establishment of a Comprehensive Bilateral Dialogue following my visit to Islamabad now offer a pathway,” she said while addressing the FICCI AGM here.

Swaraj further said countering terrorism has become a “salient feature” of the country’s foreign policy and a substantial portion of it relates to India’s relationship with Pakistan.

On Nepal, Swaraj said that her government has taken it to the “next level” by urging a “political solution” and an “inclusive” Nepal.

She also highlighted how this government has shifted the focus of diplomacy towards economic ties.

Economic ties

“It is apparent that many of the flagship programmes of the government can be significantly strengthened through international collaboration. Consequently, much of our diplomacy focus has shifted to its economic dimensions, especially in facilitating business interactions,” she said.

As a result, she said, FDI inflows have increased 40 per cent compared to before.

“The ‘Make in India’ programme has started to gain increasing traction, the latest vote of confidence coming in the $12-billion commitment made by Japan during PM Abe’s visit,” she said.

Swaraj said in the last 18 months, India’s international profile has been “significantly enhanced.” “Our views on key international issues — be it on trade, climate change, terrorism or maritime security — are also being given greater consideration,” she said.