India on track to become USD 10 trillion economy; set for 3rd largest slot, says WEF chief

India is on track to become a USD 10 trillion financial system within the coming years and take the third-largest slot globally, World Economic Forum (WEF) President Borge Brende has mentioned.

Speaking to the Press Trust of India in an unique interview on February 22, Brende described the nation as a spot with “optimism” not seen elsewhere in “a really fragmented and polarised world”. He was in New Delhi to take part within the ‘Raisina Dialogue 2024’, held on February 21-23, 2024, organised by the Indian Ministry of External Affairs.

He mentioned that the World Economic Forum hoped to come again to the nation with the WEF India Summit in collaboration with the Government of India when the time was ripe.

“The Indian financial system is the quickest rising amongst all massive economies of the world. We noticed in Davos this yr that there was an enormous curiosity in India and I believe this may solely proceed,” Brende mentioned.

The Geneva-based WEF, which describes itself as a global organisation for public-private cooperation, holds its annual assembly within the Swiss ski resort city of Davos yearly in January.

Brende mentioned that Indian Prime Minister Narendra Modi was “at all times very, very welcome to Davos”.

Generally talking in regards to the nation, he mentioned, “When you come to India, you are feeling some optimism, which isn’t the case all around the world. We are going through a geopolitical recession, a really fragmented and polarised world, however nonetheless there are areas the place we are able to collaborate and it’s important to discover these areas.”

Brende mentioned that it was mandatory to underline that the general financial development was not so unhealthy, particularly within the case of India the place “we’re seeing 7 per cent financial development and the world’s largest financial system, the US, which can be doing very effectively”.

On India setting the goal of turning into the third largest financial system within the subsequent 2-3 years, Brende mentioned that the nation was on track to become a USD 10 trillion financial system within the coming years.

“India has gone by vital reforms and it’s effectively positioned vis-à-vis the 2 largest economies, the US and China. Also, India is seeing an excellent improve in overseas direct investments, [and] numerous manufacturing actions are actually happening in India [that] used to occur in different rising economies,” mentioned the WEF chief.

He lauded India’s digital competitiveness and mentioned that digital commerce was rising a lot sooner than conventional items on the earth immediately. “India is effectively positioned and it’s only a query of time earlier than India turns into the third largest financial system on the earth after the US and China,” he mentioned.

Larger Indian footprint on the worldwide diplomatic scene

On India’s position in dealing with geopolitical conflicts, Brende mentioned, “We will see a bigger and bigger Indian footprint on the worldwide diplomatic scene within the years to come.”

Referring to the truth that India had centered on securing financial development and lifting folks out of poverty, he added, “I believe India has additionally stayed away from any knee-jerk reactions on geopolitical points. It’s not a simple neighbourhood in Asia, however India has handled conditions very effectively and we don’t see any conflicts on this area as now we have seen in locations like Ukraine and the Middle East.”

Brende mentioned that India was an vital nation when it got here to digitalisation, with 1.4 billion folks with digital IDs, linked financial institution accounts, and efficient fee techniques.

“At the identical time, the appearance of latest applied sciences raises considerations. While there are large alternatives offered by generative AI, there are additionally threats within the type of deepfakes and elevated cyber assaults. So, it is vitally mandatory to be vigilant and still have insurance policies for that,” he mentioned.