Economic Globalization, Interest Alienation, and Political Fractures: The Indian Experience Since Liberalization

 The liberalization of the Indian economy in the early 1990s marked a watershed moment in the country’s economic and political history. While it spurred remarkable economic growth, the process also triggered profound transformations in the structure of interests and relationships among social strata. Globalization disproportionately benefited urban, educated elites while marginalizing the rural and urban poor, exacerbating inequalities. This alienation of interests has deepened political polarization and eroded a shared sense of national purpose.

This paper examines how globalization-induced shifts in industrial capital and rapid financialization strained India’s social fabric. The dismantling of state-led economic protectionism disproportionately impacted agrarian and informal sectors, fueling economic discontent and political unrest. Simultaneously, the rise of a transnational elite and entrenched caste and religious divisions have intensified political fragmentation, evidenced by increasing electoral volatility and identity-based mobilizations.

This paper argues that India’s experience underscores the need for robust governance mechanisms to mediate the effects of economic globalization and ensure equitable distribution of its benefits. It highlights the critical role of global and national governance frameworks in addressing the alienation of marginalized groups and fostering political cohesion. By examining India’s trajectory, this study offers important lessons for developing economies navigating globalization in an era of rising inequality and populism.