India to play key role in world`s economic growth as Global South comes into focus
As the world’s attention turns to the developing countries of the Global South, India’s rapid progress will play a key role in shaping the future of the global economy, according to Amitabh, G20 Sherpa and former NITI Aayog CEO.
In his address at an event organised by the Association of Mutual Funds in India (AMFI), Kant said, "As per the IMF, 75-80 per cent of economic growth this year will be coming from the Global South."
He said that India has emerged as the fifth-largest economy in the world on the back of economic reforms and big investments in the infrastructure sector. As a result, India was now poised to surpass Germany and Japan by 2027. He said that India's growth ahead would be driven by continued investment in infrastructure, digital innovation, and environmental sustainability and the country was on track to become a USD 30 trillion economy by 2047.
Kant pointed out that both the IMF and World Bank have forecast that over the next three decades, three-fourths of global growth would come from the Global South, driven largely by a young and dynamic population. This demographic dividend is set to play a critical role in economic expansion. This was in sharp contrast to Europe and America where the populations are ageing, he added.
Kant highlighted India's remarkable transformation in a mere decade from being labelled as one of the "Fragile Five" countries of the world by the IMF to becoming a global economic powerhouse.
He underscored that his dramatic change has been driven by a series of bold structural reforms, including the implementation of the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code, the Real Estate Regulation and Development Act (RERA), and various initiatives to improve the Ease of Doing Business.
Kant further highlighted that in 2016, only 18 per cent of Indian women had access to bank accounts which has now jumped to as high as 91 per cent, reflecting the rapid progress the country has made in ensuring financial inclusion.
India is also making significant progress in green energy with the production and distribution of Green Hydrogen, to meet the country's decarbonization targets in the fight against climate change, he added.
