The former professor of economics at Harvard University was speaking on the sidelines of Indiaspora Forum 2026 in Bengaluru on Monday. International Monetary Fund First Vice President Gita Gopinath warned that geopolitics is now a permanent, transformative force in global policy. Gopinath pointed out that the world is moving from the post-Cold War era to a “de-risking” and defense pattern.“Countries are increasingly building defense capabilities and securing supply chains to insource essential inputs such as semiconductors and rare earths,” Gopinath explained, citing the Iran conflict as a major catalyst. “This is a revolutionary change; this is no longer the world we are used to.”
Gopinath, a leading voice on global trade and investment, believes some changes are coming and there will be no turning back. “There’s been some dissatisfaction with the global trading system for some time. There’s been dissatisfaction with what happened during the pandemic, with countries not being able to get supplies when they were reliant on imports. All of that has naturally led to where we are now,” she said.Now she feels it is important to take a hard look at international organizations to see what changes need to be made in the context of global trade. “Some people are complaining about job losses at home because of trade, and it’s not a level playing field. It’s time to see what a better rules-based order looks like,” she said. But in her mind, whether that will happen is up in the air.
