India, initially a reluctant participant, is now very much integrated into a globalised world. While it has gained from this process, helping the economy grow nearly four-fold over the last decade to nearly $2 trillion at present, it has also become vulnerable to global pulls and pressures.

The new India is as vulnerable to the global spread of Severe Acute Respiratory Syndrome (SARS) as it is to the efforts of the US Federal Reserve to stimulate the American economy by turning the liquidity spigot on and off.

Yet, the UPA continues to evolve domestic policy with an insular mindset and the consequences are devastating: India is inevitably reacting to a crisis instead of preparing for it. Read More