So, what’s happening — and why should Indian investors care?
What Triggered This Change?
Globalization started slowing down after the 2008 financial crisis. Since then, more countries have started looking inward, focusing on their own industries and jobs instead of depending too much on global trade.
- In the US, former President Donald Trump began putting high taxes (tariffs) on goods from other countries, especially China.
- Many other countries, including India, began rethinking supply chains during the COVID-19 pandemic.
- Now, with global tensions rising again, leaders like UK Prime Minister Keir Starmer are also reacting to protect their economies.
Why Did Keir Starmer Step In?
Recently, Donald Trump hinted at restarting high tariffs, especially on electric vehicles (EVs) from the UK and Europe. This would hurt the British car industry, which is already facing pressure from new technology and emission rules.
In response, Starmer said:
- The UK will delay the ban on petrol and diesel vehicles till 2035.
- The government will support local carmakers with subsidies and reduce some penalties.
- He’s even considering retaliatory tariffs on US goods.
This shows a clear move towards protectionism — where countries prioritize their own economy over free global trade.
How Did Markets React?
The news of more tariffs and trade tensions made global stock markets nervous:
- Japan’s market fell 6.5% in one day
- Other Asian markets, including Hong Kong, Singapore, and South Korea, also saw losses
- Investors moved their money to safe assets like gold and government bonds
When big economies clash, it affects global investor sentiment — and India is not isolated from these shocks.
What Does This Mean for Indian Investors?
Here’s what Indian investors should understand:
- Volatility in Global Markets = Volatility in Indian Markets
- FII (foreign institutional investors) often pull out money from India when global uncertainty rises.
- Sectors like IT, Pharma, and Auto, which depend on exports, could face short-term pressure.
- “Make in India” Becomes More Relevant
- As countries move away from Chinese dependence, India has a chance to become a global manufacturing hub.
- Sectors like defence, semiconductors, electronics, and EVs may benefit in the long term.
- Watch for Opportunities in Gold and Commodities
- During uncertain times, gold prices usually go up.
- Investors can look at gold ETFs or sovereign gold bonds as a hedge.
- Digital Globalization is Rising
- Even if physical goods trade slows down, services like IT and digital exports are booming.
- Indian tech companies may still do well despite deglobalization.
So… Is Globalization Dead?
Not really. It’s just changing.
- Traditional globalization (based on goods and manufacturing) is slowing.
- Digital globalization (based on services, tech, and remote work) is growing fast.
- Countries are now focusing more on resilience than just low cost — this means India has a real shot at becoming a preferred trade and business partner.
Final Thoughts
As an Indian investor, it’s important to keep an eye on global trends — but not panic. This shift away from full-scale globalization presents both risks and opportunities. The key is to stay diversified, focus on long-term growth sectors, and avoid short-term noise.
The world may be building more walls, but smart investors will still find windows of opportunity.
Until then, Happy Trading!
Commodity Samachar Securities
We Decode the Language of the Markets
Also Read: Tariffs Are Back, the Fed Is Pivoting — Is Your Portfolio Safe? , India Faces Tariff Heat—Is FY26 Growth Safe?
Recommended Read: India’s Semiconductor Surge: Powering the Future of Electronics!
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