Is India Prepared for the Emerging Mercantilist World Order and the End of Globalisation?
The global political and economic system, once defined by free trade and liberal values, is shifting toward mercantilism—where trade is an instrument of state power. This transition is marked by a return to bilateral negotiations and the weakening of multilateral institutions. For India, this presents a significant challenge as it has 'squandered' the opportunity to convert its demographic dividend into productive capacity over the last 15 years. To survive in this new order, India needs stronger state capability, social cohesion, and a social contract committed to sharing growth more evenly, rather than relying solely on rhetoric of being a 'Vishwaguru'.
Key Points
- Globalisation is being replaced by a mercantilist system where surpluses are strength and deficits are weakness.
- Multilateral institutions are failing to address global challenges like climate change and illicit financial flows.
- India's social pyramid remains stratified with a large powerless base supporting a narrow apex.
- Success in the new order requires investment in health, education, and democratic decentralisation.
- India can still be a player in digital public infrastructure, renewable energy, and the services sector.
Exam Facts
- Demographic dividend window: Last 15 years.
- Key sectors for India: Digital public infrastructure, renewable energy.
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