Title: Accelerated, Inclusive, and Resilient Growth: India’s G20 Priorities and UN’s Positive Outlook by Dr Kiran Kakade

Source:- https://www.ndtv.com

Introduction:

India’s role on the global stage has been steadily evolving, and as it assumes the presidency of the G20, its priorities reflect a commitment to accelerated, inclusive, and resilient growth. In this blog, we’ll delve into India’s key focus areas during its G20 presidency and examine the United Nations’ positive outlook on India’s economic resilience. India, with its rich history, diverse culture, and rapidly growing economy, has set an ambitious goal to become a developed country by 2047, marking the centenary of its independence. To achieve this monumental milestone, India must focus on several key areas that have the potential to bring about structural transformation, thereby ensuring accelerated, inclusive, and resilient growth. In this blog, we will delve into some of these crucial areas, including supporting small and medium-sized enterprises (SMEs) in global trade, promoting labor rights and welfare, addressing the global skills gap, and building inclusive agricultural value chains and food systems.

1. Empowering Small and Medium-Sized Enterprises (SMEs)

SMEs are the backbone of India’s economy, contributing significantly to employment and GDP. To propel India towards developed status, it is imperative to provide robust support to these enterprises. This can be achieved through:

• Access to Finance: Ensuring SMEs have easy access to affordable credit and financial services is crucial. Government-backed schemes, interest rate subsidies, and fintech innovations can play a pivotal role in this regard.
• Skill Development: Equipping SMEs with skilled labor is essential. Government-sponsored training programs and collaborations with industry experts can help enhance the workforce’s capabilities.
• Digital Transformation: Encouraging SMEs to adopt digital technologies for marketing, operations, and finance can boost efficiency and competitiveness. Providing incentives and facilitating digital infrastructure can facilitate this transformation.

2. Promoting Labor Rights and Welfare

Ensuring labor rights and welfare is not only a moral imperative but also vital for sustained growth. To achieve this, India must focus on:

• Labor Laws Reforms: Streamlining and modernizing labor laws can encourage formal employment while safeguarding workers’ rights. Balancing flexibility for employers with protections for employees is key.
• Social Security: Expanding social security nets to cover a broader spectrum of the population can reduce vulnerability and enhance overall well-being. This includes healthcare, pension schemes, and unemployment benefits.
• Skilling and Reskilling: Continuous skill development programs can empower workers to adapt to changing market demands, making them more employable and resilient in the face of economic uncertainties.

3. Addressing the Global Skills Gap

The global workforce is evolving, and India’s workforce must evolve with it. To bridge the skills gap and remain competitive on the global stage:

• Education Reforms: Modernizing the education system to emphasize critical thinking, problem-solving, and practical skills can prepare the workforce for the demands of the future.
• Vocational Training: Expanding vocational training and apprenticeship programs can align skills with industry requirements, ensuring a job-ready workforce.
• Global Collaboration: Collaboration with international institutions, businesses, and governments can facilitate knowledge transfer and exposure to global best practices.

4. Building Inclusive Agricultural Value Chains and Food Systems

Agriculture remains a significant sector in India, providing livelihoods to a large portion of the population. To ensure inclusive growth and food security:

• Technology Adoption: Encouraging farmers to adopt modern agricultural practices, such as precision farming and organic methods, can improve productivity and sustainability.
• Market Access: Facilitating market access for smallholders through better transportation infrastructure and technology platforms can ensure fair prices and reduce post-harvest losses.
• Diversification: Promoting crop diversification and integrated farming systems can enhance income stability for farmers while addressing food security concerns.

UN’s Positive Outlook on India’s Economy:
According to a United Nations report titled ‘Foreign Direct Investment Trends And Outlook In Asia And The Pacific 2020/2021,’ India’s economy is poised to be the “most resilient” in South and South-West Asia in the long term. Several factors contribute to this positive outlook:

1. Economic Growth: Despite a slight decrease in inward Foreign Direct Investment (FDI) flows in 2019 across the region, India emerged as a driving force, accounting for 77% of total inflows. This reflects confidence in India’s economic prospects.
2. Investment Magnet: India’s large market and positive economic growth trajectory continue to attract investments, even in the aftermath of the COVID-19 pandemic.
3. ICT and Construction: The majority of FDI flows to India were directed towards Information and Communications Technology (ICT) and the construction sector. This highlights India’s prowess in the digital economy.
4. Outward FDI: India’s outward FDI also saw growth, making it a key player in the region’s outward investment. In 2019, India invested USD 12.1 billion abroad, signaling its expanding global footprint.

Conclusion:

India’s journey towards becoming a developed country by 2047 is a challenging but achievable goal. Accelerated, inclusive, and resilient growth is contingent on addressing key structural issues, including empowering SMEs, promoting labor rights, bridging the skills gap, and building inclusive agricultural systems. A concerted effort by the government, private sector, civil society, and the international community is essential to propel India towards a brighter and more prosperous future. As we work towards this goal, we must remember that true development is not just about economic growth but also about improving the quality of life for all citizens. India’s presidency of the G20 and the UN’s positive assessment of its economic resilience underscore the nation’s determination to lead on the global stage. By prioritizing inclusive and resilient growth, embracing technology, and advocating for reform, India is positioning itself as a key player in shaping the future of international relations and economic prosperity.