ARBEJDEREN.DK, Journalist MRUTYUANJAI MISHRA-India: From the driving force of the global south to the world’s fourth most equal country

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India is paying a high price for pursuing an independent foreign policy and refusing to be reduced to a state that serves only US interests. Unlike the EU, India does not obey blindly. That is why Donald Trump has imposed a 25 percent tariff on Indian goods – with the exception of iPhones, which are now produced in India for the US market.

However, it seems as if India had foreseen this move and was prepared so that the move did not come as a surprise. In recent years, the country has expanded its cooperation with China, the Maldives, Bhutan, Japan, Indonesia and other Asian nations. The goal is to avoid being caught in a neo-imperialist world order that plays poor countries off against each other, destroys their economies and then exploits their resources.

A new global balance is taking shape – without the monopoly of the West and without fear of Washington.

Countries that refuse to obey risk sanctions and trade restrictions. For now, India has chosen to stand firm and not conform to Trump’s policies. Even the EU has concluded agreements with the US that many in Asia believe have reduced the EU to vassal states.

At the moment, Trump is unhappy with India because all of its top ministers have recently visited China and shown interest in peaceful coexistence and increased trade. India and China share almost 3,500 kilometers of border, and if the two countries – which together contain over a third of the world’s population – can cooperate, it will have global consequences.

At the same time, Russian President Vladimir Putin is expected to visit India soon. The two countries have had close cooperation for decades – both militarily, economically and in terms of energy. Russia is often referred to in India as a “tried and trusted friend” who has been reliable both in peacetime and during the Cold War.

BRICS Summit 2025: A New World Order
The expanded BRICS Summit in Rio de Janeiro in 2025 marked a historic shift. In addition to the original member states, Egypt, Ethiopia, Iran and the United Arab Emirates were admitted in 2024, while Indonesia joined in 2025.

With almost 50 percent of the world’s population and over 40 percent of the world’s GDP, BRICS has today become a political and economic powerhouse of the global south.

On July 6, leaders from the 11 largest emerging economies signed the joint declaration of the 17th BRICS Summit. The document, titled “Strengthening Cooperation in the Global South for More Inclusive and Sustainable Governance,” sets out the group’s vision to promote multilateralism, defend international law and work for a more just and equitable world order.

Indian Prime Minister Narendra Modi presented an ambitious plan to strengthen digital partnerships, promote trade in national currencies and reform global financial institutions – a real alternative to dollar dominance. A central part of the plan is the expansion of the New Development Bank (NDB), which will finance green transition and infrastructure in developing countries.

Unlike Trump, India and China see green energy as a key to future growth. Today, two-thirds of the world’s solar cells are already produced in China.

Diaspora diplomacy and new alliances
India is also working to strengthen ties with Africa, Latin America and the Caribbean. Modi has visited Ghana, Namibia, Argentina and Trinidad and Tobago – the latter with a large Indian diaspora. Here, the diaspora acts as a cultural and economic bridge that creates new partnerships.

World Bank: India is the world’s fourth most equal country
A new report from the World Bank (2025) shows that India is now the world’s fourth most equal country measured by the Gini index – ahead of the US, the UK and all G7 countries.

Extreme poverty has fallen from 16.2 percent in 2011-12 to just 2.3 percent in 2022-23. In ten years, 171 million people have been lifted out of extreme poverty.

In contrast, countries like Denmark are no longer among the 10 most equal countries – despite their reputation as welfare states. The ten most equal countries now include Slovenia, Slovakia, Belgium and the Netherlands.

Denmark versus India: Reversing roles in equality
Inequality is on the rise in Denmark. Housing prices are exploding, too little public housing is being built, and public transport is becoming increasingly expensive. This creates a gap between owners and renters, and many low-income Danes find that social benefits are no longer enough to live a decent life.

India, on the other hand, has pursued a targeted social strategy. The World Bank highlights five programs in particular:

PM Jan Dhan Yojana: 557 million bank accounts, giving the poor access to financial services.

Aadhaar cards: 1.42 billion digital ID cards, ensuring access to welfare services.

Direct Benefit Transfer: Direct cash payments to unemployed and needy citizens.

Ayushman Bharat: Free health insurance of approximately 40,000 kroner per family for 500 million citizens.

PMGKAY: Free food for over 800 million citizens during crises.

In addition, public transport in India is generally cheaper and more extensive, making daily life easier for low-income groups.

These programs show how economic growth can be combined with social inclusion – something that Denmark and other Western countries can learn from.

Equality as a geopolitical strength
India’s success in reducing inequality strengthens both the welfare of the population and the country’s role in international forums. Together with China, Brazil and other BRICS countries, India is giving legitimacy to an alternative development model where economic progress goes hand in hand with social justice.

A new global balance
India has become a symbol of a new development model, where economic growth, social inclusion and geopolitical independence go hand in hand. The country’s achievements show that the global south no longer needs to follow the Western neoliberal path that increases inequality and makes states dependent on great powers.

While the EU has chosen to adapt to Trump’s bully methods, India and the rest of the global south are showing that the world is no longer fair.

A new global balance is taking shape – without the monopoly of the West and without fear of Washington.

This is a blog. The post is solely the expression of the writer’s own opinion. All posts on Arbeideren must comply with the rules of press ethics.