About globalization: Mixed signals

News: Pandemic imperatives require diversification of supplies, but protectionism is not an answer.

How does India’s quest for globalization shaping?

The covid experience suggests the need for shorter supply chains with more national capacities. The External Affairs Minister (EAM) remarked that India has emerged as a reliable alternative to a resilient supply chain. This was evident when India provided reliable vaccine supplies in wake of covid.

In this, India is also aided by global sentiments not being in favor of China. For instance, China was recently accused of weaponizing trade by Australia.

What is India’s stand on globalization?

EAM termed the notion of foreign companies operating on terms suitable to them as unsustainable. He also addressed the concerns about access to the Indian market and the issue of protectionism. The campaign of Atma Nirbhar Bharat does not entail protectionism. Instead, it will help India to negotiate with partners like the UAE, Canada and EU and others about their concerns.

What should be the way forward?

Though WTO has failed in addressing the challenges of globalization, protectionism is still not the answer. Thus, India will refrain from protectionism and embrace globalization but ensure that India’s concerns are addressed.

Source: This post is based on the article “Mixed signals” published in The Hindu on 16th December 2021.