"Public diplomacy is a web of mechanisms through which a country's foreign policy positions are transmitted to its target audiences. The term was first used by U.S. diplomat and scholar Edmund Guillion in 1965. He saw it as 'dimensions of international relations beyond traditional diplomacy, the cultivation by governments of public opinion in other countries …' Indian diplomats, however, rightly maintain that public diplomacy has to do with both foreign and domestic audiences [my emphasis]. When you put out a story on television, blog or YouTube today, it is consumed by a university student in Bhopal as much as by a financial analyst in Toronto." On Smith-Mundt, see.
--Public diplomacy — the tasks ahead - Rajiv Bhatia, The Hindu [an excellent analysis of India and PD]