India's Economic Rise: Reforms, Innovation & Sustainability | G20 Sherpa

New Delhi, Jan 25 (PTI) India's multi-faceted approach to growth, driven by reforms, digital innovation, green initiatives and robust infrastructure, has not only reshaped its economy but also positioned it as a key player in the global economic landscape, Amitabh Kant, the G20 Sherpa and former NITI Aayog CEO, said on Saturday.

As the world shifts its focus toward the Global South, India's continued progress will play a pivotal role in shaping the future of the global economy.

Currently the fifth-largest economy in the world, India's growth story is one of resilience, innovation, and strategic reforms, positioning the country to surpass Germany and Japan by 2027.

According to the International Monetary Fund (IMF), 75-80 per cent of the world's growth this year will come from the Global South, with India and Indonesia at the forefront of this surge.

"If the world has to grow rapidly, as per the IMF, 75-80 per cent of growth this year will be coming from the Global South," Kant said at an event organized by the Association of Mutual Funds in India (AMFI).

Both the IMF and World Bank predict that, over the next three decades, three-fourths of global growth will originate from the Global South, driven largely by a young and dynamic demographic that is set to play a critical role in economic expansion. In contrast, populations in Europe are ageing, and America has already reached a similar stage, Kant added.

Kant highlighted that India's transformation in just a decade from being labelled one of the "Fragile Five" by the IMF to becoming a global economic powerhouse has been remarkable.

This shift has been driven by a series of bold structural reforms, including the implementation of the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code, the Real Estate Regulation and Development Act (RERA), and initiatives to improve the Ease of Doing Business. These measures have laid the foundation for sustained, competitive growth, Kant said

He further highlighted India's commitment to financial inclusion as a key enabler of its economic progress. In 2016, only 18 per cent of Indian women had access to bank accounts. Today, that figure has surged to an impressive 91 per cent, underscoring the country's strides in ensuring financial accessibility.

India is also making significant strides in the production and distribution of Green Hydrogen, a clean fuel alternative that plays a crucial role in the country's decarbonization goals.

Kant emphasized the importance of these reforms and initiatives in propelling India's rise on the global stage. He noted that India's future growth would be driven by continued investment in infrastructure, digital innovation, and environmental sustainability. With these pillars in place, India is on track to become a USD 30 trillion economy by 2047.