Discuss the challenges and opportunities globalisation faces in the 21st century. How can India balance its self-reliance ambitions with the demands of a globalised world? (15M, 250 Words)

Globalisation refers to the growing interconnectedness of economies, societies and cultures through trade, investment, technology and information flows. In the 21st century, globalisation is undergoing a phase of reconfiguration rather than retreat, shaped by technological change, geopolitical tensions, pandemics and climate imperatives.

Opportunities of Globalisation in the 21st Century:

1. Technological Integration: Digital technologies, AI, e-commerce and global knowledge networks enable faster diffusion of innovation. India’s IT and digital services sector exemplify benefits of global integration.
2. Global Value Chains (GVCs): Fragmented production allows countries to specialise. India is integrating into GVCs in pharmaceuticals, electronics and automotive components.
3. Market Access: Globalisation enables access to foreign capital, advanced technology and large consumer markets. FDI and exports have supported growth in manufacturing and services.
4. Human Capital Mobility: Migration and diaspora networks enhance remittances, skills transfer and soft power. India’s global diaspora plays a key role in trade, investment and diplomacy.
5. Multilateral Cooperation: Global challenges like climate change, pandemics and terrorism require coordinated global responses. Platforms such as G20, WTO and UN remain essential.

Challenges to Globalisation in the 21st Century:

1. Economic Nationalism: Rising tariffs, trade wars such as US-China and localisation policies disrupt trade flows.
2. Geopolitical Conflicts: Russia–Ukraine war, West Asia tensions and Indo-Pacific rivalries have fractured supply chains.
3. Uneven Gains: Benefits of globalisation are concentrated among developed countries, MNCs and skilled workers, widening income and regional disparities.
4. Supply Chain Vulnerabilities: COVID-19 exposed overdependence on a few countries for critical goods such as semiconductors, and medical supplies.
5. Cultural Concerns: Cultural homogenisation, consumerism and environmental degradation challenge sustainability.

India’s approach of balancing Self-Reliance with Globalisation:

1. Strategic Self-Reliance:
   1. Atmanirbhar Bharat aims at resilient integration, not economic autarky.
   1. Focus on reducing critical dependencies while remaining globally competitive.
2. Selective Integration into Global Value Chains:
   1. Production-Linked Incentive (PLI) schemes encourage domestic manufacturing linked to exports.
   1. Emphasis on electronics, semiconductors, defence and green technologies.
3. Trade Diversification:
   1. Expanding trade partnerships with ASEAN, EU, Africa and Indo-Pacific nations.
   1. Cautious engagement with mega trade deals such as RCEP to protect domestic interests.
4. Technology Leadership:
   1. Leveraging digital public infrastructure such as UPI, Aadhaar, ONDC to integrate with global markets.
   1. Promoting startups, MSMEs and indigenous innovation.
5. Norm-Shaping Role:
   1. Active participation in G20, BRICS, SCO and advocacy for Global South.
   1. Championing reform of global institutions and fairer trade rules.
6. Sustainable Globalisation:
   1. Aligning growth with climate commitments, renewable energy leadership and SDGs.
   1. Ensuring social safety nets and skill development to distribute gains widely.

Conclusion:

Globalisation in the 21st century is marked by fragmentation, uncertainty and transformation, yet it remains indispensable. India’s challenge is not choosing between self-reliance and globalisation but harmonising both.

‘+1’ value-addition:

• Global merchandise trade crossed USD 32 trillion in 2022 as per UNCTAD, indicating that globalisation is adapting.
• The China+1 strategy has led firms like Apple and Samsung to expand manufacturing in India.
• India received USD 71 billion in FDI in 2022–23, reflecting continued global investor confidence despite protectionist trends.
• India’s UPI linkage with Singapore, UAE and France illustrates the rise of digital globalisation.

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