The World Economic Forum (WEF) 2024 in Davos concluded last week. Numerous surveys of corporate leaders who are regular fixtures at Davos tell us that geopolitics and climate are two of the topics at the top of their minds. To be sure, there were some discussions on these subjects as part of the forum’s official agenda, and in the numerous pavilions and cafes that dot the main promenade of the charming and snowy Swiss town, but they paled in comparison
The World Economic Forum (WEF) 2024 in Davos concluded last week. Numerous surveys of corporate leaders who are regular fixtures at Davos tell us that geopolitics and climate are two of the topics at the top of their minds. To be sure, there were some discussions on these subjects as part of the forum’s official agenda, and in the numerous pavilions and cafes that dot the main promenade of the charming and snowy Swiss town, but they paled in comparison to the topic du jour that was on everyone’s minds — Artificial Intelligence (AI). Almost any direction one turned, there was yet another company advertising its AI capabilities, or a world leader or intellectual pundit speaking on the future of AI (and our future with AI).
In a sign of India’s arrival on the global stage, the country was visible at the forum. There were at least eight pavilions that boasted of a state chief and cabinet ministers holding meetings, or the presence of three central government cabinet officials. Additionally, almost every large Indian information technology company was represented on the main street.
Indians and others commented admiringly on the increased number of participants and attendees from India and the diaspora. Several of the top global companies have Indian diaspora leaders helming them or in their top echelons, and many of them were present. After all, it is a common consensus that there is no better opportunity than the WEF to meet a large number of global leaders in one location.
While the mornings at Davos start early, before the rise of the winter sun, with sumptuous official breakfasts and panel discussions, the daytime is usually filled with substantive and organised conversations on myriad weighty topics. Throughout the day and late into the night, hordes of people are frantically scurrying about the sidewalks in the cold, trying hard not to slip on the slush and ice, rushing as if their lives depended on it to the next important networking meeting. As the bright lights turn on at dusk, the collective mood of the masses changes perceptibly into a party atmosphere. If the WEF is any evidence, those who work hard really do play hard. If one manages to get into the best parties, as a colleague did, one might get to hear the likes of renowned musician Sting regale the audience with a live band.
But Davos isn’t primarily about fun and games. Serious topics are discussed by movers and shakers from around the globe. This year, for example, India’s rapid and consistent economic progress towards becoming the third largest economy in 2027/28, with a Gross Domestic Product (GDP) of $5 trillion, escaped nobody’s attention. What is equally impressive is that the growth is projected to be environmentally sustainable, with plans in place for 50% of the installed energy capacity in 2030 to be derived from renewable sources.
India’s focus on inclusive growth was acknowledged at multiple sessions. The driving philosophy of ensuring that the weaker sections of society see the benefits of national economic prosperity was lauded, and there were many discussions around specific policies aimed at this purpose. The efforts are yielding results: 135 million Indians have been lifted out of poverty over the past five years.
It was frequently noted that India’s technologically advanced approach to delivering public services is being adopted by some developed nations, and that the country’s uniquely designed Digital Public Infrastructure (DPI, or the so-called “India Stack”) has created an opportunity for enhanced relationship building in international affairs.
Public and private investment in physical Indian infrastructure is at an all-time high, with the public component standing at approximately $130 billion annually. Aiding this and making economic growth more sustainable is the fact that the consumption component of GDP is steadily rising as per capita incomes gradually increase; 74% of India’s growth comes from consumption.
India’s entrepreneurial flair is being noticed around the world. From 500 startups in the country a decade ago, the number is at 100,000 today, the third largest of any country. As some of these startups gain scale, they are poised to not only take advantage of India’s vast market size but also to view the world as a potential customer base.
As any balanced discussion would, conversations at Davos included risks to India’s seemingly inexorable growth narrative. For instance, India’s low national level of investment in AI was called out. India’s job creation capacity and potential were also questioned. Even though India is creating 1.6 million jobs each month in the formal sector, which is a huge increase from just 600,000 in 2019, is that growth, though rapid, enough to keep up with India’s young and growing working-age population?
Finally, potential exogenous shocks to India’s economy, such as an international oil price increase due to geopolitical events, and a persistently high global interest rate environment due to a debt overhang in developed economies, were enumerated.
From a diaspora perspective, it is obvious that there is enormous and palpable excitement to engage productively with India for widespread benefits. The only thing I would wish for which was lacking at WEF 2024 is a higher degree of participation from countries such as Canada, the United Kingdom, Singapore, Australia, South Africa and many others, which have strong people-to-people connections with India.
India’s call to the world from Davos is clear: The country must play a key and expanding role in every entity’s global calculus.
Sanjeev Joshipura is executive director, Indiaspora. The views expressed are personal
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