How India can become the bank for the Global South
- Its a pivotal diplomatic moment for India in 2023, focusing on its G20 stewardship and the parallel with China's geoeconomic rise in 2008.
- With a GDP comparable to China's in 2007, India has the potential to reshape the global order through strategic diplomacy, echoing China's success during the global financial crisis.
China's Model and India's Opportunity
- Examining China's response to the 2008 crisis, it is emphasized that China leveraged economic promise to gain substantial influence.
- India, with a similar GDP, has an analogous opportunity to position itself as an "additional engine of growth" and geopolitical power in the changing global landscape.
India's Role Amid Global Changes
- As Europe faces stagnation, the US turns inward, and China grapples with internal issues, India can play a crucial role in driving global growth.
- India, with its $4 trillion economy, can contribute to institutions, and enhance security.
- India's platform economy and potential for green and digital growth position it uniquely in the 2020s.
India's Additionality and Attributes
- The term "additionality" is emphasized, suggesting that India can offer significant contributions without being extraordinary.
- While China's growth had momentum, India has its trajectory, better suited for a digital and green future.
- There is a need for a coherent roadmap, echoing China's approach 15 years ago, to excite global partners.
India's Development Finance Role
- India's growing development finance capacity is identified as a key element of its additionality.
- India is envisioned as the "bank of the Global South" by allocating a substantial portion of its GDP to development cooperation.
- This financial strength, coupled with a unique proposition, can enhance India's global influence.
Outward-Focused Approach
- India should establish an outward-focused development finance corporation, akin to China's model, to catalyze global projects.
- India needs a bank that will focus on global corporate needs beyond just trade finance.
- And it also needs imagery that resonates with the international community.
Conclusion
- Similar to India's domestic initiative, Gati Shakti, we need an external engagement approach.
- India should collaborate with like-minded partners to map priority infrastructure, connectivity routes, business hubs, and developmental projects globally.
- 2024 is the year for inking a world map described by India’s vision for its role in the world.