WTO and India

At World Economic Forum, how India made a mark

Note4Students

From UPSC perspective, the following things are important :

Prelims level : UN World Investment Report:

Mains level : India's notable economic growth, showcased at Davos 2024

Davos 2024: While world is fighting for land, India is winning foreign  investments at World Economic Forum

Central Idea:

India’s notable economic growth, showcased at Davos 2024, positions it as a global player addressing challenges such as geopolitical incidents, climate change, and technology risks. The country’s achievements in technology-driven governance, active participation in global discussions, and emphasis on socioeconomic aspects contribute to its recognition as a resilient and influential economy.

Key Highlights:

  • Technology-driven Governance: India’s effective use of technology for governance solutions at scale is highlighted, especially in the context of Artificial Intelligence (AI).
  • Global Participation: India actively engages in global discussions, particularly on socioeconomic issues, reflecting its role as a responsible and influential partner in the world.
  • Women Empowerment: Davos discussions spotlight Indian women’s substantial contribution to the economy, managing businesses worth $37 billion annually. Advocacy for financial institution investments in women-owned businesses is emphasized.
  • Energy Transition: Amidst the focus on climate change, challenges related to energy transition are discussed, with attention to the importance of non-disruptive processes and policy strategies.
  • Equitable Growth: India’s growth trajectory is highlighted as equitable, encompassing infrastructure development, gender inclusivity, and addressing the needs of disadvantaged sections through social security measures.
  • Global Recognition: Moody’s recognizes India as a “pocket of resilience” in the face of global economic challenges, acknowledging the country’s stability and receiving attention across economic, social, and political dimensions.
  • Favorable Investment Destination: India is presented as a favored destination for global investments, with the government’s mission to achieve developed status by 2047.

Key Challenges:

  • Geopolitical Incidents: India’s integration into the global economy makes it susceptible to geopolitical incidents, requiring a responsible approach to maintain trust.
  • Energy Transition Challenges: Balancing import dependence on fossil fuels with the need for sustainable alternatives poses challenges in India’s energy transition.
  • Inflation Risk: Sticky inflation globally poses a risk to India’s growth trajectory, requiring vigilant economic management.

Key Terms/Phrases:

  • AI Leadership: India’s leadership role in adopting and leveraging AI for business solutions.
  • Women’s Self-Employment: The substantial contribution of Indian women, managing businesses with credit from financial institutions.
  • Green Hydrogen: Highlighting alternative energy sources, like green hydrogen, to address energy transition challenges.

Key Quotes:

  • “India can appear as a ‘pocket of resilience’ amid the risk of sticky inflation affecting the growth trajectory of the global economy.” – Moody’s Investors Service
  • “India’s economic prowess consistently outshone several large economies, showcasing a robust growth trajectory.”

Key Examples/References:

  • UN World Investment Report: Recognizing India as a favored destination for global investments.
  • Moody’s Investors Service: Acknowledges India’s resilience in the face of global economic challenges.

Key Facts/Data:

  • Indian Women’s Contribution: Ninety million women are self-employed, managing businesses worth $37 billion annually.
  • Government’s Mission: Prime Minister’s goal to propel India into developed status by 2047.

Critical Analysis:

  • Equitable Growth: The focus on growth reaching every part of the country is critical for inclusive development.
  • Global Recognition: Recognition at the global level highlights India’s role in shaping the world’s economic, social, and political landscape.

Way Forward:

  • Continued Reforms: India should maintain a proactive approach to governance and reforms, especially in technology adoption and energy transition.
  • Global Collaboration: Strengthening collaborations with global partners ensures a more sustainable and inclusive future.
  • Inclusive Policies: Continued emphasis on gender inclusivity and social security measures contributes to a more equitable growth trajectory.

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