What are the reasons of the anti-globalization calls in developed world in recent times? Discuss highlighting impacts of protectionism on India's interests.

Anti-globalisation calls have gained a significant momentum in the developed world. Therefore strong tendencies of protectionism and isolationism are being observed in developed countries. The reasons for it are

  • The developed countries are still languishing under the effects of economic slowdown of 2008.
  • Increased post truth culture which is promoting a myopic view that protectionism and isolationism will aid in reviving of economies.
  • The increasing north-south divide. The interests of the developing and developed world are seen as conflicting. The developed world wants to protect its market from influx of goods from developing countries.
  • Stagnation in WTO. Various critical issues like SSM, Doha agenda are still to be resolved.
  • Increasing sub-regionalism like TPP to achieve a coalescence of developed world to pressurize developing world.
  • Rising unemployment and stagnation or declining growth rates in developing world.

India which is exploring the opportunities to earn the demographic dividend will be impacted adversely. Because

  • Greater barriers in achieving access to markets due to protectionism.
  • India has a surplus workforce. Protectionism and isolationism will be detrimental to interests of the country.
  • A restricted FDI which will slow down the infrastructure development. As India’s is facing investment deficit.
  • A limited access to technology and resources for clean energy initiatives. This will hinder India in fulfilling its commitment under Paris climate agreement.

Globalisation is a one way road which the world has traversed. Though there are certain shortcomings, more globalisation is a solution to address these shortcomings. Actions like protectionism and isolationism will aggravate the problems rather than offering respite from the shortcomings of globalisation.

Originally written on April 26, 2023 and last modified on October 27, 2024.

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