‘India rising’ and the mixed blessings of globalisation

Document Type

Journal article

Source Publication

India Quarterly

Publication Date

12-1-2014

Volume

70

Issue

4

First Page

283

Last Page

297

Keywords

Indian economy, globalisation, quantitative easing, India rising, liberalisation

Abstract

India has been a major beneficiary of economic globalisation. Yet, integration into the global economy has also made India vulnerable to the unpredictable swings in market sentiment. Nevertheless, the ultimate effects of cross-border economic forces also depend on the robustness of domestic policies. Potential vulnerabilities such as disruption in trade or financial flows can be mitigated by sound macroeconomic policies. Although ‘licence raj’ and ‘export pessimism’ is now a thing of the past, India’s quasiprotectionist policies, coupled with the failure to deepen its integration into the global economy, have made the economy increasingly vulnerable to external forces—as seen when the United States Federal Reserve announced its decision to unwind its stimulus programme in mid-2013, resulting in deep selloffs in emerging economies, especially India’s currency, bond and equity markets.

DOI

10.1177/0974928414545925

Print ISSN

09749284

E-ISSN

09752684

Publisher Statement

Copyright © 2014 Indian Council of World Affairs (ICWA)

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Language

English

Recommended Citation

Sharma, S. D. (2014). ‘India rising’ and the mixed blessings of globalisation. India Quarterly, 70(4), 283-297. doi: 10.1177/0974928414545925

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