Way forward for India post Globalisation

History of Globalisation:

Starting some time in the last quarter of the 19th century, for close to 50 years, the world saw an expansion in trade that was actually as great or even greater than during the recently concluded phase
Then had also occurred an unprecedented movement of capital and of people
British capital flowed into building the railways across the world, immigrants moved from Europe to the United States and Asian labour was moved to the sites of deployment of western capital
The phase of high trade starting 1870 came to an end with the First World War and was to revive, slowly, only after the Second
Then, following the collapse of East European communism in the early 1990s, there was a resurgence in global trade
Now even this phase has somewhat abruptly ended with the global financial crisis

The slowdown and India:

If world economy is set to grow slowly for the foreseeable future than India needs to rework its economic policies which was mostly designed in 1991.
Recognising the diminished tempo of globalisation, India’s economic policymakers must address the growth of the home market
This means increasing the demand for goods and services emanating from within the country
Buoying up of flagging demand can be done through public investment
Infrastructure is unique in that spending on it raises aggregate demand and when it actually comes on stream, it raises the productivity of investment elsewhere in the economy
‘Roads and bridges’ are a metaphor for the public infrastructure that the Indian economy can fruitfully absorb today
So, government initiatives like Sagarmala, Green Highways, Housing for All, PRASAD etc have to succeed to cater to this new challenge.