Dispatch from Davos: Can India help fuel global growth?
India’s role in shaping the global economy cannot be ignored. If India grows, consumption grows and provides a business opportunity for the US, Europe and the rest of the world
While India may have seen an economic upheaval, it continues to stay a strong growth lever for the global economy, especially since it is one of the world's largest pools for talent and consumer base.
Activity in the East Asia and Pacific and South Asia regions remains buoyant, while growth in other EMDE (Emerging Markets and Developing Economies) regions is expected to recover in 2020-21—good news amidst the challenges of an economic slowdown. It also indicates that bilateral and multilateral trade agreements will be critical for economic recovery.
For the US, restoring all bilateral ties with India would be an extension of the Quadrilateral (Quad) framework involving the US, Japan, Australia and India, a formidable force in this multi-polar world. For India, it is the most obvious route to fortify its digital dreams and power its run to become a $5 trillion economy over the next few years. Further, a stable geo-political environment, post presidential elections in the US and post Brexit, will support in boosting the positive sentiments and global economic growth.
With more than half a billion internet subscribers and a 5G and 6G rollout just a few months away, India is one of the largest and fastest-growing markets for digital consumers, but adoption is uneven among businesses. As digital capabilities improve and connectivity becomes omnipresent, technology is poised to quickly and radically transform nearly every sector of India’s economy. That is likely to both create significant economic value and change the nature of work for tens of millions of Indians.
There is a massive ‘digital’ business opportunity in India, for not only the US, Europe and the rest of the world. India offers brilliant IT specialists, low-cost human resource and highly qualified technology experts.
According to a published media report, by 2020, millennials are going to make up 50 per cent of the total workforce in India and by 2025, a whopping 75 per cent. That means millennials will have the money and the purchasing power. They will also provide vast amounts of data and an opportunity for businesses to use artificial intelligence to improve global efficiency and create new opportunities.
Be it agriculture, healthcare, governance, logistics or the IT sector, new technologies are enabling numerous growth opportunities for large enterprises and start-ups in developing new products and service-lines. This will improve efficiency, productivity, and competence levels, thereby giving thrust to the economic growth of the country while bringing about social equality. India, because of its cultural, geographical, regional, geographical diversity, can be an innovation hub for stakeholders across the world to come together to build a cohesive and sustainable world.