India Navigates the Global Economic Order

India has emerged as a promising growth leader in the World economic system supported by the new growth paradigms such as India’s quest for Viksit Bharat BY 2047. India has surprised the World with its resilient economic growth trajectory in the recent years. The post-COVID years have witnessed a robust GDP growth at 9.1% in 2021–22, 7.2% in 2022–23 and 8.2% in 2023–24 averaging more than 8% during the last three financial years. As India is the fastest growing economy among the major economies, India influences the tone of global eco system and attracts the new economic order towards the Global South.

With its outstanding Presidency of the G20, India has emerged as a global thought leader, connecting many regions with its initiative of India-Middle East-Europe Economic Corridor (IMEC). India’s great initiatives such as Delhi declaration, Global Biofuel Alliance, Green initiatives for mitigating climate change impact, consent for crypto currencies have placed India as a beacon of global growth. These initiatives will have major impact on re-engineering the global value chains and a shift of the economic order towards the Global South.

India is the 2^nd largest economy in the global south and has amassed significant attention in the developments of Global South through its persistent efforts for collective action and development of the countries in Global South. During the G20 Summit in Delhi in September 2023, India succeeded in its efforts to induct the African Union as a permanent member of the major economic the G 20. The first G 20 expansion since its formation 1999, allows the African countries to voice their economic concerns directly to the world’s most influential countries.

As Global South represents 88 per cent of the world population including the countries of Asia, Africa, Latin America, and Oceania, countries like India, China, Brazil, Indonesia, South Africa and Saudi Arabia have emerged as major global and regional players to navigate the World economic order. With a population size of 1.43 billion which is around 24% of Global South, India’s higher and consistent economic growth strengthens the levels of economic development in the global South with reduced poverty levels, income inequalities and improved quality of life.

Recently, India witnessed a significant reduction in its poverty. Significant initiatives covering all dimensions of poverty have led to about 25 crore individuals escaping multidimensional poverty in the last 9 years. Steep decline in Poverty Headcount Ratio from 29.17% in 2013-14 to 11.28% in 2022-23 will help India to achieve its SDG target of halving multidimensional poverty well before 2030.

The Government's persistent dedication and resolute commitment to enhancing the lives of the most vulnerable and deprived have been instrumental in this accomplishment. This breakthrough has helped to reduce more than 4% multidimensional poverty from Global South and more than 3% from the World. India’s consistent human development will go a long way to enhance global living standards.

India will be a USD 4 trillion economy by the end this financial year 2024-25; all set to position as the 2nd largest in the Asia-Pacific region and the 3rd largest in the World by 2030. According to the recent IMF data (World Economic Outlook April 2024), India is a growth leader among the G 20 countries; the average growth of India during the 2021-2025 is estimated at 7.6%, followed by Turkiye at 5.6%, China at 5.1% and Indonesia at 4.8%.

India is thriving with promising economic developments; the economic outlook is exceptionally positive and political environment remains stable. The strong economic fundamentals support strong resilience, development dynamism, and prudent policy management. With a strong foundation in place, India is well-positioned to capitalize on its strengths, foster inclusive growth, and emerge as a navigator of economic growth at the global stage.

As the World’s most populous nation, India’s contribution is paramount to the global economic growth. Nearly 18% of the world population lives in India of which a whopping 65% of the population is young or under the age of 35 making it a country of World’s largest working age population. As part of its quest to world's top three economies, and its journey towards Viksit Bharat, India has provisioned significant prowess paving a great pathway for its emergence as an economic super power, going forward.