Between the last edition of the World Economic Forum and this one, the world has faced multiple challenges — geopolitical emergencies, climate change, dips in growth trajectories of nations and the threat of misuse of technology. Amidst all this, India has attracted attention with its standout growth trajectory. Davos 2024 was an opportunity for India to share the highlights of its successes. The CII India Business Hub buzzed with activity as business visitors took note of upcoming opportunities.
As an integrated global economy, India is impacted by geopolitical incidents. This places an extra responsibility on the country to be a partner that lives up to and secures the “trust”, both from a commercial viability as well as a geopolitical strategy perspective. Let me highlight a few important conversations held at the CII venues.
First, with the government’s steady and proactive reform announcements, India has been positioned as a country that has effectively used technology to develop and deliver governance solutions at a mass scale. With the conversation around Artificial Intelligence (AI) taking centre stage, discussions on how AI can benefit all and ensure that the risks of AI are at the bare minimum level have taken place at Davos. The digital leadership that India has established leads us to use AI in a smarter and better manner to make businesses focused on delivering the right value and solutions. It also gives an opportunity to India and Indian companies to take the lead in identifying where AI will be used, just like they have taken a lead in adaptation of digital technologies at scale and viable cost.
Second, India has been taking a prominent position in the discussions at Davos on key global issues, especially on aspects of socioeconomic importance. Participants at the women’s special lounge reiterated some key facts on Indian women’s participation in growth. Ninety million are currently self-employed with credit from financial institutions under the ambit of self-help groups. They manage businesses at the grassroots worth annually $37 billion. Of the credit they take from financial institutions, their non-performing assets (NPAs) are below 2.5 per cent. They have made a solid case for investment by financial institutions in women-owned businesses.
Third, the conversations on energy are as critical as the ones on technology, especially with the thrust WEF 2024 has put on climate change. Three developmental challenges related to energy transition were stressed even as import dependence on oil is growing in tandem with the economic growth — availability, affordability, and sustainability. While for the next many years, India will remain fossil-fuel dependent, new sources such as green hydrogen can offer solutions. Any transition for India must be conducted through non-disruptive processes that will require relevant policy strategies on pricing.
In most dialogues, it was pointed out that India will continue to be among the fastest-growing economies in the world in 2024. The country’s growth is trending to be equitable, which manifests in three different ways. First, every part of the country is seeing growth with an infrastructure build-up. Second, a focus on gender inclusivity is evident, encompassing aspects such as women’s employment, social security, and entrepreneurship. Third, addressing the needs of disadvantaged sections through social security measures and facilitating their integration with digital interventions.
According to Moody’s Investors Service, amid the risk of sticky inflation affecting the growth trajectory of the global economy, India can appear as a “pocket of resilience”. At the global level, there was a time when India was on the sidelines, but today, it is recognised for its economic, social and political stability and the country now receives global attention across the board. India’s economic prowess has consistently outshone several large economies, showcasing a robust growth trajectory. With a population exceeding 1.4 billion, the nation enjoys a substantial domestic market brimming with lucrative investment opportunities. The youthful and dynamic workforce, coupled with an expanding middle class and rising consumer purchasing power, has fueled India’s consistently strong GDP growth. A plethora of supportive policies and reforms by the government have bolstered the country’s resilience.
As per the UNCTAD World Investment Report, India is one of the favoured destinations for global investments. The Prime Minister has also highlighted his government’s mission to propel the country into developed status by 2047. The Indian industry participation at Davos provides a platform to further reinforce its position as a trusted global partner and a resilient economy.
With a thriving economy, our growing prowess isn’t just national progress, it’s a beacon for collaborative global advancement, reflecting our commitment to shaping a bright, sustainable future for the world. A credible India helps build a more equitable and inclusive world.
The writer is president, Confederation of Indian Industry
