In the new evolving world, India needs a new vision

Source: The post is based on the article “In the new evolving world, India needs a new vision” published in The Hindu on 31st December 2022. 

Syllabus: GS2- International Relations. GS3- Indian economy and development 

Relevance: Developmental model for India in changing world order.

News: The article explains the changing world order and the reason behind Chinese aggressive behaviour. It also explains the steps needed to be taken for faster development in India. 

What are important changes happening across the world? 

The world was able to overcome the threat of COVID-19 due to vaccination efforts. Normalcy has been restored. 

In the month of February, the world witnessed the Russia-Ukraine war. The retaliatory economic sanctions and weaponization of trade have triggered inflation, recession and gas shortage in winter. 

The era of innovative consumer technologies from America and Europe, mass-produced in Taiwan, Korea and Japan, and consumed in China, Brazil and India, seems to be nearing its end.  

America is now championing trade restrictions against its enemies. It is promoting trading blocs among its allies and incentivising domestic production through large financial assistance. The era of trusted free trade among nations seems to be over. ‘Economic nationalism’ is being promoted. 

What is the reason behind the aggressive behaviour of China in recent times? 

China’s advances into Indian territory are both undeniable and unacceptable. The timing and rationale of China’s military threat have a larger motive than just territorial gains.  

China has managed the realignment of the world order through the strategic use of debt diplomacy, economic power and a ‘common enemy’ doctrine. It marks a fundamental reshaping of global forces. 

What is needed to counter Chinese aggression? 

Trade restrictions and economic sanctions against China by western powers will backfire. The counter to Sino-centric world order is an economically powerful India. 

The strong manufacturing sector in India is the strongest response to China.  

What should be the way forward for faster development of the Indian state? 

Social front– Social harmony is a necessary condition for India’s rise as an economic power. Factories cannot afford to differentiate amongst people of multiple identities working together. 

Defence and foreign affairs– There is a need to modernise and augment our defence capabilities with state-of-the-art weaponry. India should not continue with conventional military purchase norms and processes. 

The established foreign policy doctrine of non-alignment may not be conducive to India’s growing need for trade and market access in the new economic world order.  

India needs a bolder geo-economic strategy to gain preferential access to unique technologies and capital from other nations in return for domestic market access. 

Political front– India’s political landscape will need reforms. Traditional tools of welfare and governance have not worked well and the gap between the rich and poor have widened further.  

India’s political governance model needs greater decentralisation and federalism reforms to cater to widening divergence among States. The time has now come to move away from a ‘one nation one policy’ mindset.  

Stronger institutions are a necessary condition for greater decentralisation. Reforming public institutions with more powers, autonomy, resources and accountability is essential. 

Economic front– India’s economic road map will have to factor in environmental concerns. It needs to move away from the monopolies model of private enterprise and create a new inclusive, employment-intensive economic development model. 

It is time to re-imagine India’s overall strategy and re-evaluate our normative policy framework. We need a holistic military, diplomatic, social and economic strategy.