India must reshape strategy in changing world

Source: The post India must reshape strategy in changing world has been created, based on the article “A profound shift in the global order” published in “The Hindu” on 3 May 2025. India must reshape strategy in changing world.

UPSC Syllabus Topic: GS Paper2-International Relations

Context: Global power structures are undergoing a major shift, similar to historic turning points like Vasco da Gama’s arrival in India. Multilateral institutions are weakening, and Asia is regaining its influence. The article explores how India must respond strategically to shape its global role in this evolving order.

For detailed information on India could help shape a whole new global consensus read this article here

Collapse of the Post-Colonial Global Order

1. End of Multilateral Institutions: The 75-year-old system of multilateralism—built on rule-based globalisation—is eroding. Institutions like the WTO and UN are now seen as irrelevant by those who once backed them. The U.S. has exited key agreements, signalling loss of confidence in global norms.
2. Shifting Donor-Recipient Dynamics: The old world divided between “donors” and “recipients” has become outdated. China has overtaken the U.S. in aid, trade, and manufacturing, disrupting the earlier balance of power. BRICS is gaining momentum, with more countries seeking entry.
3. Bilateralism Replacing Multilateralism: U.S.-led bilateral deals now override national interests, using tariffs and trade imbalances to reshape domestic laws. Least Developed Countries have lost trade privileges, weakening the fairness of the system.

Rise of an Asian-Centric World

1. Asia’s Reclaimed Dominance: Asia is set to reclaim two-thirds of global wealth and power, its historical norm before colonialism. Since 2020, India, China, the EU, and the U.S. have driven 75% of global growth, with the U.S. and China nearly equal in trade, tech, and military reach.
2. India’s Diplomatic Responsibility: India must now manage ties with both powers. It must counter U.S. trade pressure, especially on agriculture and energy, and expand rapprochement with China. Diplomats should frame new principles for global governance in an equal world.
3. Asian Market Opportunity: ASEAN’s turmoil offers a chance to form an Asian common market through bilateral ties. India should promote a new trade architecture involving ASEAN and the African Union, whose consumer potential is growing faster than the West’s.

Innovation and Trade: The Missed Link

1. Tactical, Not Strategic Foreign Policy: India India historically focused on global peace and balancing great powers rather than pursuing economic innovation. Its best diplomats were sent to the United Nations to negotiate resolutions, while trade and technology diplomacy were largely ignored. The Non-Aligned Movement gained international goodwill but contributed little to national wealth creation
2. Neglect of Technology Partnerships: India ignored how other powers fostered tech through academia-industry linkages. Trade and innovation were seen as separate, unlike in the West and China.
3. Need for Political Consensus on Technology: India must form a national consensus on skill-building and employment, with collaboration across political lines. This will help rebuild its technological base and strengthen value-chain integration with Asia and Africa.

Seizing the Technological Frontier

1. India’s Digital Strengths: India has the potential to lead in open-source software and digital cooperation. Despite past setbacks, its digital stack and data strengths can help regain tech leadership.
2. Technology Race with China: While Huawei now makes 7nm chips, India lags. China has closed its hardware gap. India, once ahead in software, must catch up.
3. AI as the New Wealth Driver: AI is now the foundation of influence and prosperity. India must set grand technological missions, leveraging its talent and digital platforms to build world-class language models.

Learning from China’s Model

1. Consensus Over Imported Models: China’s rise is rooted in indigenous consensus, not Western frameworks. India must build its own path, not copy others.
2. Affordable Energy as Economic Driver: Lowering the price of electricity is a strong incentive for restructuring. Patents, not just GDP, should measure progress. Prosperity also helps mitigate climate change.

Question for practice:

Examine how India can strategically respond to the collapse of multilateral institutions and the rise of an Asian-centric global order.