Paper: GS – II, Subject: International Relations, Topic: Global issues, Issue: Key Shift in the Global Order.
Context:
Globalisation is retreating amid geopolitics, protectionism, and supply-chain fragmentation. In this shifting global order, India must reassess its growth strategy, institutional strength, and preparedness for a more mercantilist world.
Key Highlights:
The End of Globalisation as We Knew it:
- Definition: Globalisation was more than just free trade; it was a political system promoting liberalism, democracy, and global cooperation.
- Shift to Mercantilism: A return to viewing trade as a tool of state power, prioritizing surpluses and seeing deficits as weakness.
- Reasons for the Shift:
- Unintended Consequences: Rising inequality (returns to capital exceeding wage growth) and manufacturing shifts led to populist backlash.
- China’s Rise: China’s economic success without adhering to the multilateral order challenged the existing system.
- Assertion of Sovereignty: Countries are prioritizing national interests and self-sufficiency over global cooperation.
India’s Position in the New World Order:
- The Dilemma: India is too large to ignore but too poor to be a major player.
- Missed Opportunities: Failure to convert demographic advantage into productive capacity, leading to a sharply stratified society.
Areas of Potential Strength for India:
- Digital Public Infrastructure: A leading domain for India.
- Renewable Energy: Potential for growth and development.
- Services Sector: Leveraging India’s expertise.
- Democratic Decentralisation: Strengthening local governance.
India’s readiness for a post-globalisation world remains uncertain, as structural challenges in inequality, state capacity, and social cohesion persist, requiring stronger institutions and inclusive growth to succeed in an emerging mercantilist order.
Source: (The Hindu)
La Excellence IAS Academy, the best IAS coaching in Hyderabad, known for delivering quality content and conceptual clarity for UPSC 2026 preparation.
FOLLOW US ON:
â—‰ YouTube : https://www.youtube.com/@CivilsPrepTeam
â—‰ Facebook: https://www.facebook.com/LaExcellenceIAS
â—‰ Instagram: https://www.instagram.com/laexcellenceiasacademy/
GET IN TOUCH:
Contact us at info@laex.in, https://laex.in/contact-us/
or Call us @ +91 9052 29 2929, +91 9052 99 2929, +91 9154 24 2140
OUR BRANCHES:
Head Office: H No: 1-10-225A, Beside AEVA Fertility Center, Ashok Nagar Extension, VV Giri Nagar, Ashok Nagar, Hyderabad, 500020
Madhapur: Flat no: 301, survey no 58-60, Guttala begumpet Madhapur metro pillar: 1524, Rangareddy Hyderabad, Telangana 500081
Bangalore: Plot No: 99, 2nd floor, 80 Feet Road, Beside Poorvika Mobiles, Chandra Layout, Attiguppe, Near Vijaya Nagara, Bengaluru, 560040