Global India: Setting the context and civil society responses

Twenty years after the onset of the economic reforms of 1991, India’s global role (or rather perceived potential) is receiving unprecedented attention. But does India have the trappings of a big power and are its institutions ready to play a proactive role in the changing geo - economic, environmental and political context? What are the consequences of the rise of Indian multinational corporations? How has Indian civil society responded to the developments over the past decade? This scoping paper attempts to answer some of these questions.

Chapter one summarises the consequences of India’s policy commitment to the free market agenda in terms of the nature and pattern of India’s integration into the global economy. It shows that during the period of India’s highest growth we see a sharp increase in its trade deficit. In the years after the 2008 crisis, India’s trade deficit translated into an increase in the current account deficit. India is increasingly dependent on short term capital flows to keep its current account deficit under control. This raises questions on the sustainability of India’s growth path, along with widening inequalities, persistent poverty, high rates of malnourishment, growing governance failures and the continued possibility of jobless growth. The chapter also discusses the shift in India’s trade towards developing countries, and the rise of Indian business.

The second chapter takes a closer look at several aspects of what the emergence of Global India entails. It looks at India’s evolving position in different forums and regional groupings, as well as the response from civil society on arguably the most important one, the G20. The G20 is examined from the perspective of its ability to provide a forum for global governance. Against this backdrop, the recent engagement of some Indian civil society groups is examined, in order to give a picture of what is happening and what engagement already exists, and within what limits. Climate, trade and investment are key arenas of international negotiations and India’s position at the UNFCCC and various trade platforms are touched upon. IBSA and BRICS are discussed as two forums on South-South cooperation that could present new opportunities. The chapter finishes with an examination and mapping of the growing presence of Indian companies abroad (especially in Africa), in the sectors of energy and food production.

The paper concludes by asserting that there has been little systematic response from independent think tanks and Indian non- governmental organisations in terms of monitoring and research on these developments. It is high time that Indian NGOs in partnership with other groups in the global south (and north) articulate a forward looking research and advocacy agenda to influence the fast evolving phenomenon of Global India

 

About the Author: Benny Kuruvilla is an independent researcher based in New Delhi. His research interests include trade, south-south cooperation and climate policy. He can be reached at benkuru@gmail.com