New Delhi, Aug. 24 -- As protectionism, geopolitical tensions and supply-chain vulnerabilities reshape the global economy, Prime Minister Narendra Modi re-emphasized the push for a self-reliant India in his Independence Day address. Yet, even as talk of de-globalization gains momentum worldwide, the evidence points to transformation rather than an across-the-board retreat.

Traditional merchandise trade is facing growing headwinds from higher tariffs and other trade barriers. But cross-border integration continues through services, investment and digital flows. Supply chains are being reconfigured rather than dismantled, while new trading partners are gaining prominence.

For India, the push to strengthen domestic capabilities need not be...