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Monthly DNA
01 Jul, 2020
13 Min Read
Part of: GS-I- Contemporary World History (PT-MAINS-PERSONALITY TEST)
China is soon to become the largest economy in the world. It’s growth is based on technology, innovation and trade, which sought to balance U.S. military superiority, and has fueled the strategic rivalry between the two countries.
The rising tensions between the US and China have prompted many experts to warn of a new Cold War akin to the Cold War between the US and USSR.
In 2017, the US National Security Strategy called China as “a revisionist power” seeking “to erode American security and prosperity” and “shape a world antithetical to U.S. values and interests”. Also, China has been proactive in undermining the US hegemony on multiple fronts.
COVID-19 pandemic has further aggravated the deterioration of ties between the two countries. Thus, this new Cold War between China and the United States is a major geopolitical risk of the 21st century.
Events Signalling a New Cold War
Differences Over Previous Cold War
There are several key differences between the previous Cold War between the US & Soviet Union and the Cold War between the US and China.
Role of India
India is a rising global power and citing its importance both the US and China sought to attract India in its camp. Foreign policy experts in the US argue India Is a Natural US Ally in the New Cold War. On the other hand, Chinese Ambassador in India has suggested writing “together a new chapter” with “a shared future for mankind”. In this context:
Conclusion
As India joins the UN Security Council (non-permanent seat) and chairs the BRICS Summit and hosts the G-20 in 2022, the development will bring an opportunity for India to assume a leadership role and propose a new globalisation model based on humanity, fairness and equality has wide support in a more equal world rather than a world divided by Cold War.
Source: Web
Part of: GS-II- India and South Asia (PT-MAINS-PERSONALITY TEST)
Recently, India and Bhutan have signed concession agreement on the 600 MW Kholongchhu Hydropower Project.
points
India Bhutan Hydropower Projects
Way Forward
Source: IE
Part of: GS-III- Economy (PT-MAINS-PERSONALITY TEST)
In an effective response to an unprecedented emergency (Covid-19 pandemic) that disrupted most channels of national and international trade, Indian Prime Minister, under Atma Nirbhar Abhiyan, gave a clarion call for the country to become self-reliant.
India in the pre-1991 era also strived for achieving self-reliance and import substitution. While it resulted in a diversified economic base for heavy industries such as Steel, coal, petroleum refinery etc, India fell behind the curve on quality, technology and productivity.
Economists attribute these shortcomings to the then industrial and trade policies, particularly industrial licensing, physical barriers to import of goods, high tariffs and imperative economic policies.
Though the Indian Prime Minister clarified that the current idea of self-reliance is not about a return to import substitution or autarkic isolationism, but rather aimed at a quantum jump to the economic potential of the country by strengthening infrastructure, using modern technologies, enriching human resources, and creating robust supply chains.
In order to achieve this goal policy making needs to address underlying issues and leverage economic opportunities.
Underlying Issues in Becoming Self Reliant
Available Opportunities
Way Forward
Given the underlying issues and opportunities, it is vital to become competitive in pursuance of self reliance.
Source: FE
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