Opinion KPMG CEO writes: India is the bridge that connects the world

A key focus area at the G20 is the growth of digital infrastructure. India, with its various initiatives, has unlocked the potential to overcome the imbalance between different cohorts of the population and enable inclusive growth. The Unified Payments Interface (UPI), which has witnessed a 58 per cent year-on-year volume growth this year, is an excellent example of India’s digital infrastructural success. The emphasis on the nation’s experience in digital public infrastructure in unlocking inclusive growth can be positioned as a global solution for other emerging economies.

Financial institutions play a key role in further enhancing India’s digital growth. The impact of digital initiatives has been profound, and these initiatives have enabled citizen engagement, providing convenient digital services across the nation. As seen during the pandemic, digital pathways have enabled a smooth provision of essential services, driven economic growth, and fostered a more inclusive digital economy. Suitable models of governance and regulation are needed to ensure that everyone can reap the benefits of a data-driven economy. The recently released Digital Personal Data Protection Bill is a case in point.

Furthermore, multilateral financial institutions should be reformed to ensure that finance is accessible to those in need. The G20 nations are looking to enhance the agility of multilateral development banks (MDBs) for tackling 21st-century challenges and ensuring prompt resolution of debt and debt-related matters. Another critical step will be to establish a global regulatory framework for crypto assets beyond central bank jurisdiction.

Climate change is causing natural disasters on a gigantic scale. This has disrupted human life and the biodiversity of our planet. It is now time for India to lead the world on sustainability. Our traditional ways of living in balance with the environment have much to teach the modern world. The priority must be to focus on building cities for tomorrow, climate-resilient infrastructure, new methods of growing food and new economic systems that balance growth and sustainability.

A crucial component of sustainable growth needs to be the India Stack for sustainability. A technology-first and sustainability-ready digital infrastructure that helps manage ecosystems, energy needs, waste and water resources. India can use its strengths in technology and an intrinsic understanding of digital innovation and circularity to show what a sustainability-first economy really looks like. Artificial intelligence and different tenets of sustainability can both be harnessed for a greener and yet more prosperous India.

Global Value Chains (GVCs) are one of the key drivers of sustainable growth, jobs and living standards. Several factors are essential for becoming a trusted and resilient trade partner. Enabling ease of doing business and addressing decriminalisation will be key. Moreover, in the era of Industry 4.0, technologies such as blockchain, IoT, analytics and cloud digitalisation of trade will be an important paradigm shift. They will be instrumental in providing a strong impetus via increased transparency and trade facilitation.

Low-carbon manufacturing is now becoming a competitive advantage. India has always excelled in frugal innovation, and our vast pool of skilled resources has the potential to address this market need at scale. Top Indian companies have already started looking deeply at net zero targets in the context of India’s ambition to be net zero by 2070. At the same time, India’s vast MSME sector, in which the country’s vast population works, needs support. We must be cognisant of the fact that creating a low-carbon economy needs people and skills; mandating climate legislation can impact livelihoods at scale.

An equal world is a safe and secure one for all. The G20 EMPOWER Digital Inclusion Platform, which is available in 120 languages and open to young girls and women across G20 nations, is a positive step for enabling gender equality and women empowerment. And especially pertinent to help them grow in the new technology-driven global order.
India’s G20 Presidency aims to strive for just and equitable growth for all in the world, navigating through turbulent times, in a sustainable, holistic, responsible, and inclusive manner. The challenge ahead is to adopt a unique approach of living in harmony with the surrounding ecosystem and foster the true spirit of “vasudhaiva kutumbakam” (One earth, one family, one future).

The writer is CEO, KPMG, in India