Corporates, politics, not just hand in Gov

Marco Rubio's visit to India this week was highlighted by his visit to Jamnagar, not New Delhi. This goes beyond optics. Bosses of Amazon, Alphabet, Apple, Meta and Microsoft meet PM Narendra Modi when they visit the country. This interaction has become commonplace, and necessary, as globalisation shifts from operating through neutral economic channels to strategic competition among countries over trade, technology, energy and supply chains. Rubio's meeting with Mukesh Ambani and a dekho of Reliance Industries' oil-refining complex continues this trend.

Unlike the era of high globalisation, governments today are intervening through industrial and trade policies, and need to co-opt a much broader range of resources for statecraft. Global corporations, on their part, have brought public affairs into their strategic core because market access is shaped by political identity - and not just confined to their nominal backyards. Governments and companies have always been in a continuous dialogue over industrial subsidies, manufacturing mandates and tariff protection. The canvas has now expanded to include foreign companies that bring in critical tech like AI, cybersecurity and RE. In return, MNCs rely on state subsidies, public capex and legal frameworks to navigate global markets.

At a time when capacity of governments to deliver for their voters is shifting, new alliances must be made with corporations that have the vision and resources to provide an adequate response. The relationship is not without friction - and it's not meant to be without distinct motives. But common ground can be found with proactive engagement. Governments trying to bring trade into balance need offsetting investment flows from companies. Diversified supply chains work as a counterweight to weaponisation of natural resources. The government-corporate dynamic is now more nuanced as politics acquires additional complexity. Companies operating in multiple jurisdictions must don an acceptable political identity. Watch for more ops beyond photo-ops.