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India Emerges as Global Third Pole Amid US-China Rivalry, Says Report

A Washington-based analysis posits that a fragmented global economy, marked by US-China tensions, is elevating India's role as a strategic third pole. Europe and Canada are viewed as deepening ties with India to de-risk from China and hedge against American volatility. India's democratic framework, growing manufacturing base, and strategic autonomy make it a viable commercial and political bridge across the Atlantic. Despite its protectionist tendencies, India's flexibility allows it to engage multiple powers in an era of disruption.

Key Points: India: Strategic Third Pole in Fragmented Global Economy

  • Europe seeks India as China alternative
  • Canada may follow Europe's pragmatic hedge
  • India combines scale with democratic legitimacy
  • Offers strategic autonomy amid US-China rivalry
3 min read

'India emerges as viable third pole in fragmented global economy'

Analysis says Europe & Canada see India as a democratic, scalable alternative to China and a hedge against US volatility in a divided world.

"India is becoming a bridge-commercial, strategic, and political-connecting both sides of the Atlantic - The National Interest article"

New Delhi, Feb 11

With the United States, China, and Russia creating a hostile world, Europe and Canada have no choice but to deepen ties with India, according to an article in Washington-based online publication 'The National Interest'.

"Caught between de-risking China and hedging against American volatility, Europe has turned to India as a strategic alternative. India offers scale without China's level of geopolitical and normative baggage. It is not a substitute for the US security umbrella, nor a replica of China's manufacturing ecosystem, but it represents a viable third pole in an increasingly fragmented global economy," states the article written by Dr Jianli Yang.

The article highlights that Canada faces the same situation as Europe. This is reflected in Prime Minister Mark Carney's cautious outreach to China aimed at diversifying partnerships and reducing exposure to unilateral shocks from the USA. And yet keeping space to manoeuvre between Washington and Beijing.

Despite strained Canada-India relations in recent years, driven by diplomatic and security disputes, Ottawa may realistically follow Europe's path and treat India as a pragmatic hedge.

With Europe and India signing a trade agreement, the United States and India reaching a framework deal, and "Canada potentially moving in the same direction, an unintended architecture is emerging. India is becoming a bridge-commercial, strategic, and political-connecting both sides of the Atlantic", the article states.

India is seen as fitting into this role as the country is rapidly expanding its manufacturing base, attracting investment that has been relocated from China as companies diversify their supply chains. Most iPhones sold in the United States are now made in India, a symbolic marker of global realignment. India also combines relatively low labour costs with improving legal infrastructure, technological capacity, and a vast domestic market, the article states.

"Equally important, India offers something China cannot: democratic legitimacy. Its institutions are imperfect and contested, but they provide a shared political language with Europe and North America -- elections, courts, and civil society -- that lowers the political cost of cooperation. Demographically, India's young, English-speaking workforce and growing purchasing power enhance its long-term appeal. Strategically, its rivalry with China and insistence on strategic autonomy align it more naturally with transatlantic interests than Beijing's vision of authoritarian-led globalisation," the article observed.

The report also mentions that India has its protectionist instincts, bureaucratic inertia, and insistence on autonomy, which will pose a problem for both Europe and Canada. "But in a global order characterised by disruption and distrust, India's very flexibility -- its ability to engage all sides without fully binding itself to any -- may be its greatest asset. As (US President Donald) Trump redraws alliances, antagonises allies, and personalises foreign policy, India has become the unlikely connective tissue holding together an increasingly divided Atlantic world-not by grand design, but by the vacuum left behind," the article contended.

- IANS

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Reader Comments

P
Priya S
It's good to see positive analysis, but we must be cautious. Being a "third pole" comes with immense pressure and responsibility. Our bureaucracy and protectionist policies *are* a real hurdle, as the article mentions. We need faster reforms to truly capitalize on this opportunity. Let's not get carried away by headlines.
V
Vikram M
The point about democratic legitimacy is key. It's our soft power. While China can build ports and roads faster, our messy democracy, free press, and independent judiciary give long-term partners more confidence. It's a competitive advantage we should never compromise.
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Rohit P
"Strategic autonomy" is the phrase to focus on. We are not aligning with any bloc. We are engaging with all for our own national interest. This is why we buy oil from Russia and make iPhones with the US. It's a delicate balancing act, but so far, so good. The world needs a neutral player.
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Sarah B
Interesting perspective from a Washington publication. As someone working in Indo-US trade, I see this shift firsthand. The 'China +1' strategy is very real, and India is the primary beneficiary. The challenge will be scaling up consistently to meet global demand.
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Meera T
Hope this translates to better jobs and technology transfer for our youth, not just profits for large corporations. The focus should be on building our own capabilities, not just being an assembly line. Self-reliance ('Atmanirbharta') and global integration must go hand-in-hand.

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