The Provincial Globalists: How States are Rewriting Trade Diplomacy

Apple’s export of iPhones from India crossed USD 23 billion 2025[i], with an 85 percent jump from the previous year. India’s Foreign Direct Investments (FDI) crossed the threshold of USD 1.4 trillion between April 2000 and December 2025[ii]. These stories did not emerge simply in New Delhi and what had actually unfolded was the radical decentralisation of trade diplomacy in India. It is the state capitals – Gandhinagar, Chennai, Bengaluru, Kolkata and Mumbai among others that are negotiating, incentivising and closing deals with their global counterparts. Many Indian states are assembling dedicated semiconductor missions, organising domestic investment summits with 100+ participants and participating in the ones abroad in London and Berlin. These states are now provincial globalists with their own strategic outlook to engage with the world.

These interactions are best understood through the lens of para-diplomacy. It refers to the international engagement of subnational governments to advance their economic, political or cultural interests while operating within the constitutional framework of the national government. Unlike foreign policy, which remains the exclusive domain of the Central government in India, para-diplomacy focuses on areas such as trade promotion, investment attraction and economic cooperation. In India, it has emerged as a significant feature of competitive federalism, with states increasingly acting as economic diplomats in pursuit of development, especially as the global supply chain shift towards China+1 options is accelerating.

[i] https://www.outlookbusiness.com/corporate/apples-iphone-exports-from-india-cross-2-tn-mark-in-2025-a-first-ever-milestone

[ii] https://www.dpiit.gov.in/static/uploads/2026/02/6dc3e8a9fe52d5a412d8e5f41d7b921f.pdf