Is India prepared for the end of globalisation?, Pg8

Key Highlights:

• US President Donald Trump stated India reduced Russian oil imports to please him, hinting at potential tariff increases if displeased.
• Globalisation, characterized by free trade and political cooperation, is being replaced by mercantilism, where trade is viewed as a tool of state power.
• China's rise as an economic power, without fully complying with the multilateral order, has shaken the geopolitical foundations of the post-colonial era.
• India faces the challenge of converting its demographic advantage into productive capacity amid a stratified social pyramid.

Detailed Insights:

• Early globalisation was built on resource exploitation, with wealth accumulation in industrialized nations occurring at the expense of others.
• The post-colonial global system relied on open markets, free capital movement, and cross-border contract enforcement, but these assumptions are weakening.
• Returns to capital have outstripped wage increases, leading to economic pressures, manufacturing shifts, and increased migration, fueling populist politics.
• Global cooperation is now viewed as an opportunity cost, with countries prioritizing national interests and asserting sovereignty over liberal values.
• International aid is becoming conditional on donor countries' interests, weakening developing countries' ability to negotiate on issues like climate change.
• India has the potential to be a key player in digital public infrastructure, renewable energy, services, and democratic decentralization.
• Without stronger state capability, social cohesion, and equitable growth, India risks remaining a country with unrealized potential.

Key Concepts Involved:

• Globalisation: The expansion of free trade of goods and services, associated with liberalism, democracy, and global cooperation.
• Mercantilism: An economic theory that promotes trade as an instrument of state power, emphasizing surpluses as strength and deficits as weakness.
• Populist Politics: Political strategies that appeal to the common people who feel that their concerns are disregarded by established elite groups.