Semester research: India’s engagement with the global economy

India is one of the fastest growing major economies in the world. After the past two decades, that’s something of an old story.

Yet such a blanket statement also washes over questions about what that growth rate actually means for issues of sustainable development, broadly define. India certainly has something to be proud of, yet it also faces serious hurdles in supporting its claim to a narrative of newfound power and prosperity.

My third large semester research project involved analyzing India’s link’s with the global economy, a phenomenon that really only began in the early 1990s when India shed its autarkic ways. Though “liberalization” started with steps taken almost a decade earlier, it was the serious risk of debt service default that spurred policy makers in 1991 to adopt austerity measures, devalue the rupee and begin a steady if slow process of external economic opening.

The paper looked at four core areas of engagement — trade, investment, debt and aid — and examined implications for sustainable development. A final section offers several policy recommendations for the future.

The ultimate conclusion is that while India has liberalized its economy it has also continued to protect key sectors, producers and businesses when it sees fit. India is far from a free-market economy but it has opened doors when in the name of national interest, which has both positive and negative implications for sustainable development. Its enviable growth rate will only continue to be a valid goal if policy makers also begin to consider measures to ameliorate some of the severe negatives that come with this capitalist economic development.

UPDATE: A trimmed down version of this paper was published by the Journal of International Service in the Spring of 2013. My submitted draft can be read here. The full issue can be found here.

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