top of page

By:

Akhilesh Sinha

25 June 2025 at 2:53:54 pm

India's multi-align diplomacy triumphs

New Delhi: West Asia has transformed into a battlefield rained by fireballs. Seas or land, everywhere echoes the roar of cataclysmic explosions, flickering flames, and swirling smoke clouds. et amid such adversity, Indian ships boldly waving the Tricolour navigate the strait undeterred, entering the Arabian Sea. More remarkably, Iran has sealed its airspace to global flights but opened it for the safe evacuation of Indians.   This scene evokes Prime Minister Narendra Modi's memorable 2014...

India's multi-align diplomacy triumphs

New Delhi: West Asia has transformed into a battlefield rained by fireballs. Seas or land, everywhere echoes the roar of cataclysmic explosions, flickering flames, and swirling smoke clouds. et amid such adversity, Indian ships boldly waving the Tricolour navigate the strait undeterred, entering the Arabian Sea. More remarkably, Iran has sealed its airspace to global flights but opened it for the safe evacuation of Indians.   This scene evokes Prime Minister Narendra Modi's memorable 2014 interview. He stated that "there was a time when we counted waves from the shore; now the time has come to take the helm and plunge into the ocean ourselves."   In a world racing toward conflict, Modi has proven India's foreign policy ranks among the world's finest. Guided by 'Nation First' and prioritising Indian safety and interests, it steadfastly embodies  'Vasudhaiva Kutumbakam' , the world as one family.   Policy Shines Modi's foreign policy shines with such clarity and patience that even as war flames engulf West Asian nations, Indians studying and working there return home safe. In just 13 days, nearly 100,000 were evacuated from Gulf war zones, mostly by air, some via Armenia by road. PM Modi talked with Iran's President Masoud Pezeshkian to secure Iran's airspace for the safe evacuation of Indians, a privilege denied to any other nation. Additionally, clearance was granted for Indian ships carrying crude oil and LPG to pass safely through the Hormuz Strait. No other country's vessels are navigating these waters, except for those of Iran's ally, China. The same strategy worked in the Ukraine-Russia war: talks with both presidents ensured safe corridors, repatriating over 23,000 students and businessmen. Iran, Israel, or America, all know India deems terrorism or war unjustifiable at any cost. PM Modi amplified anti-terror campaigns from UN to global platforms, earning open support from many nations.   Global Powerhouse Bolstered by robust foreign policy and economic foresight, India emerges as a global powerhouse, undeterred by tariff hurdles. Modi's adept diplomacy yields notable successes. Contrast this with Nehru's era: wedded to Non-Aligned Movement, he watched NAM member China seize vast Ladakh territory in war. Today, Modi's government signals clearly, India honors friends, spares no foes. Abandoning non-alignment, it embraces multi-alignment: respecting sovereignties while prioritizing human welfare and progress. The world shifts from unipolar or bipolar to multipolar dynamics.   Modi's policy hallmark is that India seal defense deals like the S-400 and others with Russia yet sustains US friendship. America bestows Legion of Merit; Russia, its highest civilian honor, Order of St. Andrew the Apostle. India nurtures ties with Israel, Palestine, Iran via bilateral talks. Saudi Arabia stands shoulder-to-shoulder across fronts; UAE trade exceeds $80 billion. UN's top environment award, UNEP Champions of the Earth, graces India, unlike past when foreign nations campaigned against us on ecological pretexts.   This policy's triumph roots in economic empowerment. India now ranks the world's fourth-largest economy, poised for third in 1-2 years. The 2000s dubbed it 'fragile'; then-PM economist Dr. Manmohan Singh led. Yet  'Modinomics'  prevailed. As COVID crippled supply chains, recession loomed, inflation soared and growth plunged in developed countries,  Modinomics  made India the 'bright star.' Inflation stayed controlled, growth above 6.2 per cent. IMF Chief Economist Pierre-Olivier Gourinchas praised it, advising the world to learn from India.

How wealth creation is beyond chasing returns

When we talk about personal finance and investing, most conversations revolve around returns. How much did an investment make last year? Which asset is performing best right now? But seasoned investors know that wealth creation is not just about chasing returns. It is equally about understanding risks, especially the ones that quietly derail long-term financial goals.


Whenever you invest in any product or asset class, there are three important risks you must analyse before committing your money.


The Risk of Temporary Volatility

The first and most visible risk is temporary volatility. This refers to short-term fluctuations in the value of an investment. Assets like equities, equity mutual funds, gold, and real estate can move up and down over short periods. Prices may rise, fall, recover, and remain volatile for some time.


This volatility often creates anxiety because losses appear on paper, even though nothing permanent has happened. Importantly, temporary volatility does not mean the investment is bad. It simply reflects market cycles or short-term sentiment.


What investors must understand is that temporary volatility is largely outside their control. Reacting emotionally to these movements often leads to poor decisions, such as exiting good investments at the wrong time or losing out completely on eventual opportunity gains.


The Risk of Permanent Loss of Capital

The second risk is far more serious - the risk of permanent loss of capital. This occurs when there is a possibility that you may lose a part of your capital or, in extreme cases, the entire amount permanently.


Examples include speculative options buying, investing in junk stocks based on tips, or investing in real estate with questionable legal titles or assets that eventually find no buyers and become highly illiquid. In such cases, the money does not recover with time. Once lost, it is lost for good.


Before investing, it is critical to ask a simple question. Is there a scenario where my capital can be permanently destroyed? If the answer is yes, that investment demands far higher scrutiny and strong risk control.


The Risk of Not Beating Inflation

The third risk is extremely critical and most ignored - the risk of not beating inflation. Inflation quietly erodes purchasing power over time. If your investments do not grow faster than inflation, your wealth may increase in numbers but decline in real value.


Many so-called safe investments fail this test. While they may protect capital, they may not help you achieve long-term goals such as retirement, children's education, or financial freedom.


This risk is often ignored because it does not show up immediately. But over long periods, it can significantly reduce your probability of achieving financial goals.


Where Should Investors Focus?

Temporary volatility will always exist and should not be the primary concern. Instead, investors should focus on avoiding permanent loss of capital and ensuring their investments beat inflation over the long term.


Successful wealth creation is not about eliminating risk completely. It is about choosing the right risks and avoiding the wrong ones.


(The author is a Chartered Accountant and CFA (USA). Financial Advisor.  Views personal. He could be reached on 9833133605.)

 


Comments

bottom of page