Phase of globalisation-aided growth is facing challenges. India must be prepared

Globalisation — the free flow of goods, services, labour, capital and ideas — has been incontrovertibly beneficial for India, lifting its average annual growth rate to nearly 6.5 per cent since the early Nineties (from 3.5 per cent during 1950-1990) and per capita GDP from $320 to $2,500. While international trade in goods may have slowed down since 2010, the other components of globalisation haven't, at least until recently. In fact, India's export of services, particularly software and back-office/business support operations through global capability centres, has boomed in the past decade, even as it has remained the top global recipient…