PYQ Relevance:[UPSC 2019] ‘The long-sustained image of India as a leader of the oppressed and marginalised Nations has disappeared on account of its new found role in the emerging global order”. Elaborate. Linkage: India is at a turning point, and the world is becoming more equal, moving away from old colonial ways. As Asia becomes more important again, this change is also affecting how India is seen and positioned globally. |
Mentor’s Comment: India is at another turning point, similar to when Vasco da Gama arrived in Kozhikode in 1498 and the local ruler, the Zamorin, failed to act strategically. But this time, it’s not about sea trade routes—it’s about how global value chains are being reshaped through power and influence. This is a crucial moment for India, which is on track to become the world’s third-largest economy. For the past 75 years, the world has followed a post-colonial order known as globalisation. It was based on countries following common rules for the greater good, and divided the world into “donors” and “recipients.” But this idea no longer works, especially after China overtook the U.S. in foreign aid, manufacturing, and global trade share. As a result, institutions like the WTO, UN, and various treaties have become less useful to powerful countries, leading to U.S. pullouts.
Today’s editorial analyses global value chains as being reshaped through power and influence. This content would help in the GS Paper II (International Relations).
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Let’s learn!
Why in the News?
President Donald Trump is not acting randomly. He is reacting to a world where countries are becoming more equal and breaking free from old colonial ideas, while still trying to keep their fading advantages.
What shift in global trade is compared to Vasco De Gama’s arrival?
- Transition from Trade Routes to Value Chains: Vasco De Gama’s 1498 voyage opened sea-based trade routes connecting India to Europe. Today, the world is witnessing a shift from traditional trade to technology-driven global value chains (GVCs), reshaped by geopolitical forces rather than free markets. Eg: The semiconductor supply chain, where countries like Taiwan, South Korea, and the U.S. dominate chip design and fabrication, reflecting value chain complexity over simple trade.
- Strategic Inertia vs Strategic Foresight: The Zamorin’s complacency during Vasco’s arrival represents a lack of strategic foresight in seizing global opportunities. India now faces a similar moment and must act strategically to capitalize on the global trade realignment and not miss out like in the colonial past. Eg: India’s PLI (Production Linked Incentive) schemes in electronics and pharmaceuticals are efforts to plug into global manufacturing chains proactively.
- Geopolitically Driven Trade Structures: Earlier global trade was commercially motivated, but today it is increasingly geopolitically driven, with blocs forming and multilateralism weakening. Eg: The U.S.-China trade war and decoupling from Chinese supply chains are forcing countries like India to reposition themselves in new GVCs.
Why is the post-colonial global order losing relevance?
- Shift from Multilateralism to Bilateralism and Power Politics: The post-colonial world order was built on rule-based multilateral institutions (e.g., WTO, UN), promoting equal participation. Now, major powers prefer bilateral deals that prioritize national interest over global consensus. Eg: The U.S. withdrawing from multilateral agreements like the Paris Climate Accord and WTO dispute mechanisms.
- Obsolescence of Donor-Recipient Hierarchy: The older order assumed a world divided into ‘donors’ (developed nations) and ‘recipients’ (developing nations). This has become irrelevant as emerging powers like China now surpass traditional Western powers in aid and trade influence. Eg: China’s Belt and Road Initiative (BRI) has made it a larger global lender than the World Bank in many regions.
- Erosion of Trust During Global Crises: Global institutions failed to uphold equitable principles during emergencies, revealing self-serving behavior by developed nations. Eg: During the COVID-19 pandemic, G-7 countries hoarded vaccines and medical supplies, sidelining poorer nations and weakening trust in global cooperation.
Who should lead India’s push for new global governance principles?
- India’s World-Class Diplomats: India should empower its skilled and experienced diplomatic corps to frame and advocate new governance principles suited to a multipolar world. Eg: Indian diplomats played a key role in shaping the International Solar Alliance, showing leadership in global climate governance.
- Cooperation Between Political Leadership and Policy Experts: A coordinated approach involving political vision (e.g., Prime Minister’s “Asian Century” narrative) and strategic policy institutions can guide India’s global engagement. Eg: NITI Aayog and MEA’s policy think tanks can jointly shape proposals for reforms in multilateral institutions like the WTO and UN.
- Engagement with Global South and Emerging Institutions: India must lead with inclusive principles by aligning with BRICS, ASEAN, and the African Union, promoting a fair and tech-driven global order. Eg: India’s BRICS presidency and advocacy for the Global South Voice at G-20 summits shows readiness for leadership beyond the West-dominated system.
How can India become a global leader in AI and technology?
- Leverage Human Capital and Digital Infrastructure: India must build on its skilled workforce, vast datasets, and proven digital stack (like Aadhaar, UPI) to drive AI innovation. Eg: IndiaStack enabled large-scale digital public goods, which can now serve as the foundation for developing large language models (LLMs) and AI applications.
- Promote Open-Source and Indigenous Innovation: Focusing on open-source technologies and encouraging local R&D will allow India to innovate independently and at scale. Eg: India can emulate models like DeepSeek (an open-source AI rivaling U.S. models) to build affordable, accessible AI tools.
- Create National Consensus and Industry-Academia Collaboration: A national policy consensus involving all stakeholders—governments, academia, and industry—must be built to focus on AI, chips, and deep tech. Eg: China’s rise in hardware was driven by state-industry coordination; India needs similar programs for semiconductors and AI research centers.
Which regions should India partner with for a new economic framework?
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Way forward:
- Institutionalise Strategic Partnerships: India should formalise economic and technology alliances through frameworks like FTAs, digital cooperation pacts, and regional value chains with emerging regions (ASEAN, Africa, LAC).
- Champion Inclusive Global Norms: Lead the Global South in advocating reforms in global governance institutions, emphasising equity, sustainability, and tech sovereignty to shape a multipolar, resilient global order.
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