| 8 | The World Economic Forum (WEF) Annual Meeting has been an important destination for India’s international relations. India has been an important participant in this annual meeting, and the Confederation of Indian Industry (CII) has been associated with this forum for over 35 years now. WEF promises to be a platform for the Indian industry to learn, grow and build new partnerships, and CII’s footprint at Davos will further strengthen and help the country scale new global heights. As India completes 75 years of Independence and assumes the G20 Presidency for 2023, it finds itself in an uncertain geopolitical and global socio-economic environment that gains complexity with the overlay of the climate change imperative and fast-paced technological advancements. Davos 2023 will renew focus on India’s rising economic potential supported by a vibrant domestic economy and provide new opportunities to position India for global leadership with a long-term vision of India@100 in 2047. A globally integrated India has recently emerged as the 5th largest economy in the world, overtaking the United Kingdom. The Indian economy has exhibited a growth of about 6.5% over the last pre-pandemic decade and is poised to enter a similar, if not higher, medium-term growth path. As a result, India is expected to remain the “fastest-growing major economy” in the world over the medium term. The accelerated growth of the Indian economy, supported by domestic consumption demand, investment rates and government spending, is expected to have a positive impact on the regional and global economy. The accelerated growth of the Indian economy will have a positive impact on the global economy Davos 2023 will renew focus on India’s rising economic potential Global alliances and international collaboration are critical in evolving strategies that improve economic resilience and facilitate growth. Despite global challenges, the Indian economy’s macroeconomic fundamentals remain solid. The government has implemented several structural and economic changes, including banking sector regulations, liberal FDI rules, and important financial sector reforms, which are intended to make India an attractive investment destination. Although India is not immune to the global recession, it is expected to remain the fastest-growing major economy. Our foreign exchange reserves are strong and our export and FDI performance continue to be robust. The coordinated interventions of the government and the Reserve Bank of India should lead to softening the blows of inflation. Five important pillars of the government’s economic plan stand out from an industrial standpoint: infrastructure, manufacturing, entrepreneurship, sustainability, and the social sector. India’s upcoming G20 Presidency will put the country on the global stage and allow it to position its priorities and narratives on the global agenda. TheConfederation of Indian Industry (CII) has been designated as B20 Secretariat. Our goal is to spearhead the industry’s participation during India’s G20 presidency and ensure that the viewpoints of the Indian industry are effectively reflected in various G20 forums. Today, Indian industry stakeholders are taking an active interest and working with other stakeholders and G20 leaders in the areas of global value chains, trade and investment, climate change, digital transformation, ease Chandrajit Banerjee Director General, Confederation of Indian Industry (CII) EXCLUSIVE ARTICLE | 9 | of financing global recovery, technology, innovation and the role of research and development, financial inclusion, women in business and startups. The Government has accorded high priority to sustainable development and outlined ambitious targets for climate change. India’s growing power and energy demand are directing the need to diversify energy alternatives, upgrade to sustainable refinery processes, accelerate the bio-fuel economy, and attract investment in exploration and production to enhance domestic energy capacity and facilitate a smooth transition towards a sustainable economy. India is one of the few countries on track to meet nationally determined contributions. With sustainability being driven by industry, CII has initiated training and capacity building as well as policy advocacy and collective industry action for sustainable operations through initiatives like Indian Plastics Pact, the Biodiversity initiative, the Sustainable Mobility initiative and others. The National Logistics Policy is set to usher in ease of movement within the country, ensuring a speedier and seamless movement of cargo and people across modes of transport. The reforms will bring a paradigm shift in multimodal transport and position India as a global trendsetter in the digital and paperless logistics ecosystem. It will spur the economy’s competitiveness through improved connectivity and smooth movement of goods in both domestic and international markets. India’s improved rankingon theGlobal Innovation Index 2022 and progress on Ease of Doing Business are indicative of the visible shifts in our technology, innovation and entrepreneurship landscape. Today, India is experiencing significant transformations, from space technology and smart cities to health care and telecommunications, all driven by innovative solutions. Using frontier technologies, Indian companies are making significant leaps in innovation. In so doing, they are making their contribution to the country’s socioeconomic transformation. The Indian IT industry is repositioning itself to become the world’s digital solutions partner. Furthermore, startup culture has taken hold across the country, establishing India as the world’s third-largest startup economy. We also have the third-most unicorns in the world. Our contemporary entrepreneurial and innovation environment is transitioning away from efficiency-seeking e-commerce marketplaces and toward deep-tech and IP-driven creative firms generating new goods. CII is collaborating closely with the Indian Government and other stakeholders to encourage the Indian industry to recognise and embrace innovation. We prioritise capacity building, academic engagement, and worldwide cooperation in sharing best practices as we aim to take firms to the next level of technological innovation. India is a consumption-driven economy driven by its young population and digitization is creating a change in the pattern of consumption in India. Domestic consumption’s share in GDP is relatively high compared to other emerging economy peers. Due to a large domestic consumption base and rapid growth, India is projected to experience real growth in consumption spending of about US$ 1.7 trillion during 2019-2030. This would be the 3rd highest growth in demand across economies behind only the US and China. While the services sector contributes considerably to GDP through increased demand, investments, and exports, chemicals and plastics, textiles and garments, consumer products, electronics, medicines, and automobiles are all strong segments of our manufacturing industry. Manufacturing opportunities in India are expanding as multinational corporations perceive India as a manufacturing and export centre to diversify their supply base and decrease geopolitical concerns. The moment has come to improve our international bilateral connections and welcome investors to take advantage of the numerous opportunities. With both quality and quantity, India can rise to meet not just rising local demand, but also global demands, and emerge as a preferred location for global corporations. • Despite global challenges, the Indian economy’s macroeconomic fundamentals remain solid.
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