Reassessing State Capitalism in the New World Order: The Case of India

Abstract

This study re-examines the origins, conceptual foundations, and theoretical dimensions of state capitalism within the shifting contours of the contemporary global order. It positions India’s state-owned enterprises (SOEs) as pivotal instruments of national development, countering the dominant narrative that privatization is the universal remedy for inefficiency. By tracing the historical trajectory and policy frameworks underpinning state capitalism, the paper demonstrates how Indian SOEs have sustained capital investment, safeguarded energy security, and generated significant fiscal dividends, particularly in sectors where private capital has been hesitant to participate. Drawing on comparative global models and debates, the analysis identifies the structural and contextual factors that shape the resilience and viability of state capitalism in volatile geopolitical and economic environments. The evidence underscores that, under statist strategies, Indian SOEs have consistently delivered superior outcomes relative to private sector counterparts, reaffirming their relevance in an era defined by uncertainty, multipolarity, and systemic transformation.