India in a Multipolar World

The political developments of the current decade have placed enormous stress on the existing institutions and norms of global politics. It may be argued that this decade has seen more turmoil in the international arena compared to the previous two. This period has already had to contend with a global pandemic, multiple armed conflicts and a continuing erosion of trust and legitimacy in international institutions. More than ever before, we find ourselves in a situation where the givens of the past are no longer applicable. This is obviously a by-product of changing economic and political circumstances in the United States of America, the country that maintained hegemonic control in the post-Cold War era. Seemingly, the gradual decline of the USA has meant that the international arena is becoming increasingly unstable. The fact remains that the world is witnessing a transition from an international system dominated by one country to a multipolar system.

While a unipolar order allows for stability, albeit under a single country, a multipolar world will provide increased bandwidth to emerging countries like India, along with economic and political uncertainty. This transition presents unique challenges to major players like India and Europe. It is in light of these changing circumstances that we have to understand the actions of the Indian government. The ongoing negotiations between India and the European Union on a Free Trade Agreement (FTA) remain essential to both entities.

The European Union, which itself is a product of post-Cold War optimism and was based on principles of political liberalism and free trade, today faces an identity crisis. It has become obvious that two of the largest economies in the world, namely the USA and China, would willingly discard these principles based on their own political prerogatives. This presents a concerning reality for the EU. The Indian economy provides a stable and growing trade partner for the EU. An FTA represents an opportunity for the EU to increase trade with India and find a more stable trading partner.

India also finds herself in a precarious position. While the economy has shown the ability to avoid major shocks like the 2008 crisis and the global pandemic and continue growing at a stable pace, it has also been a victim of the USA’s overly aggressive tariffs and the geostrategic actions of China. Additionally, unlike Europe, the South Asian subcontinent remains politically unstable, with India being the only politically and economically stable country in the region. This has always been a major disadvantage for India, as unlike European countries, India cannot rely on her neighbours for trade.