As the world’s focus shifts to the developing countries of the Global South, India’s rapid progress is set to play a crucial role in shaping the future of the global economy, according to Amitabh Kant, G20 Sherpa and former NITI Aayog CEO.
Speaking at an event organized by the Association of Mutual Funds in India (AMFI), Kant emphasized that, according to the International Monetary Fund (IMF), 75-80% of economic growth this year will come from the Global South.
Kant highlighted that India has emerged as the fifth-largest economy globally, driven by economic reforms and significant investments in the infrastructure sector. As a result, India is poised to surpass Germany and Japan by 2027. He projected that India’s future growth would be fueled by continued investment in infrastructure, digital innovation, and environmental sustainability, with the country on track to become a $30 trillion economy by 2047.
Both the IMF and World Bank have forecast that over the next three decades, three-fourths of global growth will come from the Global South, largely driven by a young and dynamic population. This demographic dividend contrasts sharply with the aging populations of Europe and America, Kant noted.
Kant also highlighted India’s remarkable transformation over the past decade, from being labeled one of the “Fragile Five” countries by the IMF to becoming a global economic powerhouse. This dramatic change has been driven by 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.
In 2016, only 18% of Indian women had access to bank accounts, a figure that has now jumped to 91%, reflecting the country’s rapid progress in ensuring financial inclusion.
India is also making significant strides in green energy, particularly in the production and distribution of Green Hydrogen, to meet its decarbonization targets in the fight against climate change, Kant added.
