Content
- India’s strategic autonomy in a multipolar world
- Fixing problems, unlocking India’s growth potential
India’s strategic autonomy in a multipolar world
Basics
- Definition: Strategic autonomy = ability of a nation to take sovereign foreign policy and defence decisions without external compulsion.
- Not Neutrality: It implies flexibility and engagement on one’s own terms, not isolationism or passive non-alignment.
- Historical Roots:
- Colonial subjugation → resolve to avoid external domination.
- Nehru era: Non-Alignment Movement (NAM) during Cold War.
- Post-1991 era: Pragmatic multi-alignment amid globalization.
- Modi era: Assertive “multi-alignment” balancing U.S., Russia, China, and Global South.
Relevance :
- GS II (IR): India’s multi-alignment foreign policy, balancing US–Russia–China, and leadership in Global South.
- GS III (Security & Tech): Defence self-reliance, digital/data sovereignty, critical minerals, AI & cyber resilience.
Practice Question :
- How does India balance its ties with the United States, China, and Russia while preserving strategic autonomy? Illustrate with examples from recent developments.(250 Words)
Why Strategic Autonomy Matters Today
- Multipolarity: Shift from U.S.-dominated unipolarity to a fragmented world order.
- Geopolitical Rivalries: U.S.–China competition, Russia’s revisionism, EU’s divisions.
- Core Indian Interests:
- Territorial integrity (China border disputes, Pakistan).
- Economic growth (trade, technology, investments).
- Technological advancement (digital, space, AI, cyber).
- Regional stability (Indo-Pacific, South Asia).
India–United States Dimension
- Deepening Partnership: Defence deals, tech transfers, Quad, IMEC, I2U2, Indo-Pacific dialogues.
- Challenges:
- Trade frictions (tariffs, protectionism).
- U.S. pressure on Russia ties (oil, defence).
- Differing positions on global conflicts (Ukraine, Middle East).
- India’s Approach: Engage deeply but maintain independent positions; “non-West” without being “anti-West”.
India–China Dimension
- Security Challenge: 2020 Galwan clashes → end of “status quo” assumptions.
- Dual Strategy:
- Firmness: Strengthened border infrastructure, Indo-Pacific partnerships, defence modernisation.
- Engagement: Participation in BRICS, SCO, trade continuation.
- Balancing Act: Rivalry tempered with selective cooperation; neither capitulation nor total decoupling.
India–Russia Dimension
- Historical Ties: Defence, nuclear, Cold War solidarity.
- Present Complexity: Russia’s closeness to China, isolation post-Ukraine war.
- India’s Strategy:
- Continue oil imports and defence procurement.
- Diversify sources + build indigenous industry.
- Resist Western pressure to cut ties; no external veto on sovereign choices.
Global South & Multilateralism
- India as Voice of Global South: Highlighted during G-20 Presidency (2023).
- Shared Concerns: Peace, development, climate, equitable global governance.
- Principle: Agency over alignment; leadership role without bloc dependence.
Contemporary Challenges to Strategic Autonomy
- Economic: Growth vulnerabilities, trade dependence, supply chain risks.
- Technological: Dominance of U.S.–China in AI, semiconductors, space.
- Security: Cyber, AI warfare, space militarisation require self-reliance.
- Domestic Constraints: Political polarisation, institutional weaknesses, limited R&D base.
Expanding Domains of Autonomy
- Digital & Data Sovereignty: Secure platforms, AI governance, indigenous tech.
- Critical Minerals: Reduce import dependence, ensure supply chains.
- Defence Modernisation: Indigenous production (Atmanirbhar Bharat in defence).
- Climate Diplomacy: Balancing green energy leadership with developmental needs.
Way Forward
- Build Capabilities: Economic strength, technological advancement, military readiness.
- Diversify Partnerships: U.S., EU, Russia, Japan, ASEAN, Middle East, Africa.
- Resilience over Isolation: Strategic autonomy ≠ standing alone, but standing firm.
- Clear-eyed Diplomacy: Deterring China, engaging U.S., balancing Russia, leading Global South.
- Civilisational Leadership: Position India as a sovereign pole in global multipolarity.
Conclusion
- Strategic autonomy is no longer aspirational—it is daily diplomatic practice.
- For India, it means freedom of action without bloc entrapment, grounded in national interest.
- As the world becomes multipolar, India’s ability to maintain resilience, adaptability, and leadership will determine whether it emerges as an independent global pole rather than a peripheral power.
Fixing problems, unlocking India’s growth potential
Basics of GST
- GST (Goods and Services Tax): Introduced in 2017 as a single indirect tax, subsuming multiple central & state levies.
- Structure: Initially 4 main slabs (5%, 12%, 18%, 28%) plus special rates (nil, 0.25%, 3%).
- Objective: Simplify tax system, reduce cascading effect, promote “One Nation, One Tax, One Market”.
- Challenges faced:
- Inverted duty structure (tax on inputs > output).
- Compliance burden, especially for MSMEs.
- Frequent litigation & disputes.
- Multiple rates causing classification issues.
Relevance :
- GS III (Economy): Tax reform, rate rationalisation, MSMEs, exports, Make in India.
- GS II (Governance): GST Council as cooperative federalism and GSTAT for dispute resolution.
- GS III (Infrastructure & Employment): Boost to construction, labour-intensive industries, and rural job creation.
Practice Question :
- How does GST rationalisation address structural issues such as inverted duty structures, litigation, and MSME compliance burden?(250 Words)
GST 2.0 (56th Council Meeting, Sept 3, 2025) – Key Reforms
- Rate Rationalisation:
- Streamlined into two main rates: 18% (standard), 5% (merit), with 40% de-merit rate for select goods.
- Brings India closer to global best practices (OECD average ~2–3 slabs).
- Consumer Relief:
- Essentials (soap, toothpaste, shampoo, packaged food, kitchenware) shifted to lower brackets → eases household budgets.
- Construction inputs (cement, steel, tiles, sanitaryware) taxed lower → supports “Housing for All” + infra viability.
- Life-saving drugs & critical medical devices → nil/5% GST → reduces healthcare costs, expands access.
- Industry Boost:
- Labour-intensive sectors (textiles, handicrafts, leather, footwear, toys) benefit from lower rates → job creation in rural/semi-urban clusters.
- Automotive sector: Lower GST on small cars, bikes, buses, trucks → boosts demand, investment in auto hubs.
- Export Competitiveness:
- Correction of inverted duty in textiles, fertilizers, renewables → strengthens Make in India.
- Removal of refund thresholds for small consignments → relief to e-commerce exporters.
- MSME & Formalisation:
- Simplified GST Registration Scheme → auto-approval in 3 days for small, low-risk firms → reduces compliance burden.
- Encourages formalisation, liquidity support via faster refunds.
- Dispute Resolution:
- Goods & Services Tax Appellate Tribunal (GSTAT) operationalised → reduces backlog, ensures fairness, increases business confidence.
- Clarifications on intermediary services & post-sale discounts → lower litigation.
Economic Significance
- Consumption Push: Cheaper essentials & vehicles → higher demand across sectors.
- Housing & Infra: Lower input costs → multiplier effects on steel, cement, transport, and employment.
- Health Sector: Affordable medicines → social welfare + global pharma hub positioning.
- Employment: Labour-intensive industries gain → rural job generation + women’s participation.
- Exports & MSMEs: Improved competitiveness, liquidity, and compliance ease → strengthens India’s role in global supply chains.
- Investor Confidence: Predictable two-rate system → attracts FDI, improves ease of doing business rankings.
Challenges Ahead
- Implementation gaps:
- Uniform application across states.
- Avoiding procedural delays in refunds & registration.
- Revenue concerns: Lower rates may affect short-term GST collection; balancing fiscal needs with growth is key.
- Compliance monitoring: Ensuring MSME ease without revenue leakages.
- Digital Infrastructure: Scaling up GSTN for faster refunds, real-time monitoring.
Broader Implications
- GST 2.0 is not just tax reform but an economic reform:
- Stimulates consumption.
- Boosts job creation.
- Enhances competitiveness of Indian industry.
- Aligns India with global best practices in taxation.
- Strategic message: India is signalling policy stability, predictability, and openness for global investors at a time of supply chain realignment.
- Long-term impact: Creates a tax ecosystem that fuels growth, supports welfare, and anchors India’s ambition to become a $10 trillion economy by 2035.
