{"id":165816,"date":"2022-02-01T22:26:54","date_gmt":"2022-02-01T16:56:54","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=165816"},"modified":"2022-02-01T22:26:54","modified_gmt":"2022-02-01T16:56:54","slug":"answered-what-do-you-understand-by-the-term-geo-economics-discuss-the-need-for-india-to-align-its-policies-to-structural-changes-in-the-international-economic-order","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-what-do-you-understand-by-the-term-geo-economics-discuss-the-need-for-india-to-align-its-policies-to-structural-changes-in-the-international-economic-order\/","title":{"rendered":"[Answered] What do you understand by the term geo-economics? Discuss the need for India to align its policies to structural changes in the international economic order."},"content":{"rendered":"\n\n\n
Introduction: <\/span><\/b>Provide a brief note about the term geo-economics<\/span>
\n<\/span>Body: <\/span><\/b>Provide few points on what kind of structural changes are taking place in the international economic order. Provide a critical view on some inward-looking policies of India and justify why India need to align with the world order<\/span>
\n<\/span>Conclusion: <\/span><\/b>Provide few suggestions for India in the conclusion.<\/span>\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Although there is not yet an authoritative definition of geoeconomics, the term was used by Edward Luttwak during the end of the Cold War.\u00a0It can be defined as the state\u2019s economic power and foreign policy goals achievement by economic means. For example, China has been leveraging its growing economic powers for political gain.<\/span>\u00a0<\/span><\/p>\n

How International economic order is changing <\/span><\/b>\u00a0<\/span><\/p>\n

In the post-Cold War era, it was believed that contestation between nation-states would be eliminated due to their economic interdependence. However, the eruption of the global financial crisis interrupted the process and called into question the liberal international economic system.<\/span>\u00a0<\/span><\/p>\n

The trade openness index, which was steadily rising in the post-war period, started declining after 2008.<\/span>\u00a0<\/span><\/p>\n

China became a driving force for trade and growth in recent decades. Further Covid pandemic has induced the process of <\/span>\u2018deglobalization\u2019<\/span><\/b>. Trade tension between the US and China during the Donald Trump years also contributed to the process.<\/span>\u00a0<\/span><\/p>\n

All these developments gave birth to Economic nationalism. Both China and US are focusing on strengthening their domestic capabilities. Similarly, other large economies are also reconsidering their dependence on international supply chains. <\/span><\/p>\n

Why India needs to align its policies with the global economic order? <\/span><\/b>\u00a0<\/span><\/p>\n

International trade constitutes 40 percent of India\u2019s GDP. India is on its way to become 3<\/span>rd<\/span> largest economy by the end of this decade, but, it is not possible without consistent or increasing international trade. Thus, India needs to adapt to significant changes in the global economic order.<\/span>\u00a0<\/span><\/p>\n

RCEP:<\/span><\/b> In 2019, India has walked out from the Regional Comprehensive Economic Partnership (RCEP). The reason was the agreement was favouring China. However, it was a lost opportunity to integrate India\u2019s economy to ASEAN countries, which is becoming a major economic hub. <\/span>\u00a0<\/span><\/p>\n

Strengthening Domestic capabilities:<\/span><\/b> India is now taking a number of initiatives to promote domestic manufacturing in a range of sectors \u2014 from mobile phones to armaments \u2014 under the banner of \u201cAtmanirbhar Bharat\u201d. However, in majority of the industries like electronics, India relies heavily on other countries like China. Thus, India needs to frame its domestic policies in a way that doesn\u2019t hurt\u00a0domestic industry\u2019s requirements. <\/span>\u00a0<\/span><\/p>\n

Protectionism:<\/span><\/b> India has a high tariff rate. For example, high import tariff on electronic components is hurting India\u2019s domestic electronics industry. As other countries like China and US are also adopting inward looking policies, thus it might result in revenge\u00a0tariff on Indian goods. <\/span>\u00a0<\/span><\/p>\n

Way forward: <\/span><\/b>\u00a0<\/span><\/p>\n

India is\u00a0signing free trade agreements with countries like Australia, Britain, UAE, and Israel to increase trade opportunities. It is a good step towards diversification of India\u2019s international trade. More such agreements must be signed. <\/span>\u00a0<\/span><\/p>\n

Lastly, India needs to integrate its financial, trade, technological, security and foreign policies. <\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Introduction: Provide a brief note about the term geo-economics Body: Provide few points on what kind of structural changes are taking place in the international economic order. Provide a critical view on some inward-looking policies of India and justify why India need to align with the world order Conclusion: Provide few suggestions for India in… Continue reading [Answered] What do you understand by the term geo-economics? Discuss the need for India to align its policies to structural changes in the international economic order.<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-165816","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/165816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=165816"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/165816\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=165816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}