Recently, there were reports that the United States had withdrawn up to $2 trillion from India. The news shook the globe and sparked speculation about whether the United States had become a public enemy of the planet. However, we have to be hospitable to this issue, and the news may be both true and false. What's going on? Let's dive in.
On the one hand, the report points out that many global manufacturing giants are divesting or directly withdrawing from India, including brands such as Foxconn, Ford, General Motors, Harley-Davidson, Tesla, etc. The fact that they have canceled projects that they had planned to invest in India is a signal that cannot be ignored. On the other hand, the latest data released by the Indian state depository shows that foreign institutional investors have siphoned up to two trillion rupees in financial assets. This means that a lot of capital is flowing out of the Indian market. Such a capital withdrawal is the largest in nearly 20 years and will have a negative impact on the Indian economy for up to 20 years.
So, why is this happening? We can see that the global economic environment is volatile and inflationary pressures in the United States are increasing. The high interest rates in the United States attract global capital inflows, making it difficult for other countries to withstand the flight of large amounts of dollar capital. In particular, the interest rate on the US dollar is as high as 55%, the interest rate on U.S. Treasury bonds has reached 5%, making the flow of capital led by the dollar more rapid. In such a situation, even countries with close ties to the United States cannot avoid the risk of capital outflows. The U.S. is using this to pass on inflation and debt risks, leaving countries around the world in trouble. From this point of view, the United States is indeed the public enemy of the planet.
However, India has been a target of the United States in the past and is an indispensable part of the U.S. Indo-Pacific strategy. Therefore, it is very unusual for US companies and capital to withdraw from India on a large scale. There must be a deeper reason for this. In recent years, the United States has taken a series of measures to break the chain and decouple, one of the core plans is to transfer the global high-end chip industry to the United States, and to outsource the first chain to friendly and nearshore countries, including India. At the moment, however, these plans are not moving forward as smoothly as the United States had hoped. The United States controls the behavior of capitalists and business owners by giving subsidies and sanctions, but now many capitalists and business owners no longer listen to the call of the United States, and they have begun to protect themselves. Warren Buffett has hoarded nearly $200 billion in cash, which clearly reflects two facts: on the one hand, the United States has limited control over the decoupling plan; On the other hand, the United States is declining in national power, and its control and influence are also weakening. The people of India need to recognize this reality if they are to better develop their country.
This crisis phenomenon is not only happening in India, but also around the world. Geopolitical, strategic and economic pressure on the United States has become the number one issue for many countries. The forum reported that not only India, but also other countries such as Japan, South Korea, Europe, etc., can hear similar stories. This shows that the US strategy has spread to the whole world.
The core problem of this economic crisis lies in the contradiction between economic globalization and geopolitics. In the past few decades, the impetus of economic globalization has enabled many countries to enjoy the dividends of economic development. However, this has also led to increased international economic dependence. Now, by exerting economic pressure, the United States is breaking this dependency and redefining the global economic landscape. In this case, countries that still maintain close ties with the United States will be the biggest victims.
In the current situation, we need to look at our own developments, and India is no exception. We should not only rely on external capital and foreign markets, but should actively promote independent innovation and the development of the domestic market. Only in this way can we find more opportunities in a reactive situation.
At present, the global economic environment is full of uncertainties and the international situation is turbulent. At this time, we should not continue to rely on external capital and the market, but should strengthen independent innovation and develop the domestic demand market.
First of all, independent innovation is an important means to achieve economic independence and sustainable development. We cannot always rely on the technology and resources of other countries, but should focus on the improvement of independent R&D and innovation capabilities. Only with independent core technology can we be invincible in international competition.
Second, the domestic demand market is the key to stabilizing economic growth. We cannot blindly pursue exports and attract foreign investment at the expense of the potential of the domestic market. Vigorously developing the domestic demand market and increasing the people's spending power can not only increase domestic employment opportunities, but also stimulate economic growth and enhance the country's overall strength.
While facing external pressure and crisis, we should face up to our own problems and strengthen internal integration and reform and innovation. Only through independent innovation and the development of the domestic demand market can we get rid of external constraints and achieve real development.
Reviewing the discussion in this article, we present the case of Indian divestment. Although this news has attracted a lot of attention, we need to analyze it calmly and objectively. The global economic environment is volatile, and the geopolitical influence of the United States is declining, and it is exerting economic pressure to achieve its strategic goals. India, as a country that has been courted by the United States, has also been affected by the United States' decoupling policy. However, in the face of external pressure, we should not only rely on external capital and the market, but should strengthen independent innovation and develop the domestic demand market. In this way, we will be able to get rid of our dependence on external factors and achieve real development.