Dr. Arvind Kumar*
India’s ability to integrate diverse modalities of engagement into a cohesive and mutually reinforcing framework has driven its domestic progress and positioned it as a model of the Development Compact. This concept, articulated by Hon’ble Prime Minister Sh. Narendra Modiji during the inauguration of the Third Voice of Global South Summit (VoGSS), exemplifies India’s approach to inclusive and sustainable development. What distinguishes India is its comprehensive strategy, encompassing health, education, sustainability, defence, skill development, capacity building, technology transfer, trade for development, grants, concessional financing, and economic growth. By tackling shared challenges through innovation, inclusivity, and resilience, India provides a roadmap to inspire and guide the Global South in forging its own path toward sustainable and equitable progress.
China’s development model, shaped by distinct perspectives and praxis, is rooted in a market-imperialist strategy aimed at expanding its geographic reach and establishing economic dependencies through debt-driven initiatives. In contrast, India has taken a proactive role in championing the collective concerns of the Global South, exemplified by its successful advocacy for the inclusion of the African Union (AU) in the G20. This move has garnered widespread support from advanced nations, including the United States and the European Union. These nations recognize India’s indispensable role due to factors such as trade interdependence, integrated supply chains, connectivity imperatives, and the evolving geopolitical landscape.
The landscape of global power dynamics is shifting, with the Global South – encompassing developing regions of Asia, Africa, and Latin America – gaining prominence, and India taking center stage. With its economy reaching $3.7 trillion in 2023 and securing the fifth position globally, India has demonstrated remarkable resilience amidst worldwide economic challenges. The country’s influence has grown substantially through its leadership in various international forums, notably during its G20 presidency in 2023, where it championed crucial issues affecting developing nations, particularly in areas of climate financing and digital infrastructure development. India’s membership in key organizations like FATF and BRICS has provided platforms to advocate for developing nations’ interests, offering an alternative to Western-dominated global governance. Through groundbreaking initiatives like the International Solar Alliance, India has demonstrated practical leadership in addressing critical challenges facing the Global South, particularly in sustainable energy access. Furthermore, India’s persistent advocacy for reforming international institutions, especially its push for a more representative UN Security Council, reflects its commitment to amplifying the voices of developing nations in global decision-making processes.
Here’s why India’s voice matters:
India’s potential to lead the Global South stems from its unique combination of factors: with a remarkable GDP growth projection of 7-7.2% in FY 2024-25, significantly outpacing other Global South nations like Brazil and South Africa, which are expected to grow at merely 1.5% and 2% respectively. This economic stability is reinforced by robust foreign exchange reserves of $670.1 billion and a well-managed retail inflation rate of 3.65%, creating a conducive environment for sustainable development initiatives. India’s industrial transformation presents a compelling model for the Global South. The Make in India initiative has catalyzed the manufacturing sector’s GDP contribution from 16% to 20% in 2023, while FDI inflows have surged from $5.6 billion to $20 billion in 2023-24. The ecosystem nurtures innovation across scales – from 70,000+ recognized startups and 100+ unicorns valued at $300+ billion to 40 million MSMEs contributing 46% of total exports. The Production Linked Investment Scheme has attracted $25 billion across sectors, demonstrating successful industrial policy implementation.
The country’s commitment to environmental sustainability showcases its responsible leadership approach. Ranking third globally in renewable energy capacity, India’s ambitious target of 450GW by 2030 is supported by comprehensive initiatives including rooftop solarization and the establishment of solar parks. Its growing diplomatic influence through initiatives like the International Solar Alliance (ISA) with 110 member countries. The Critical Mineral Mission demonstrates foresight in ensuring energy transition readiness, while the shift towards an Indian Carbon Market reflects maturity in climate action. This progress is evident in India’s SDG Index score improvement from 57 in 2018 to 71 in 2023, setting a benchmark for other developing nations.
Empowering People, Driving Progress
The nation’s social development framework is equally robust. Healthcare initiatives show remarkable progress, with Ayushman Bharat reducing out-of-pocket expenditures from 64.2% to 47.1%. The National Health Mission has achieved a 98% increase in medical colleges, while PM-ABHIM has upgraded 1.6 lakh healthcare centers. In education, the allocation of 4-4.6% of GDP exceeds regional peers, with the National Education Policy 2020 focusing on internationalization and quality enhancement.
Digital transformation and financial inclusion represent India’s innovative approach to development. A massive digital transformation (with over 1.2 billion digital identities under Aadhaar), successful poverty reduction programs (lifting over 415 million people out of poverty between 2005-2021 according to the UN). The processing of 45 billion UPI transactions worth INR 84 trillion in 2023-24 demonstrates digital payment adoption, while 480 million Jan Dhan accounts and 1.3 million Common Service Centers have democratized financial access. The Pradhan Mantri Mudra Yojana’s disbursement of 40 million loans worth INR 3 trillion supports grassroots entrepreneurship.
Defense capabilities and indigenous production strengthen India’s leadership credibility. The increase in domestic procurement to 75% from 58%, combined with exports to 85 countries and private sector contributing 60% of defense exports, showcases self-reliance. The allocation of $12.6 million for AI projects and initiatives like Bharat NCX demonstrate forward-thinking security preparedness. Skill development and entrepreneurship complete the development matrix. The training of 15 million youth, coupled with an INR 5000 crore budget allocation for FY 2024-25, addresses human capital development. The National Corridor Development Programme’s potential to generate 1.5 million jobs and attract $37 billion in investments demonstrates the scale of India’s ambitions.
Ethical Partnerships for Shared Prosperity
At the recent Third Voice of Global South Summit in August 2024, India proposed a Global Development Compact aimed at enhancing trade and capacity building among developing nations, complemented by a $2.5 million fund for trade promotion and $1 million for capacity building in trade policy. By advocating for a human-centric approach to development that avoids debt traps associated with initiatives like China’s Belt and Road Initiative, India positions itself as a more ethical partner. Furthermore, India’s commitment to sharing its digital public infrastructure, exemplified by the agreements to share the ‘India Stack’ with 12 Global South partners, reinforces its role as a facilitator of technological advancement while also establishing a Social Impact Fund with an initial contribution of $25 million to support the same.
Forging Unity and creating a Roadmap for a Resilient Global South
The path forward for India’s leadership of the Global South requires a cross-cutting approach anchored in institutional development and practical action. Priority should be given to establishing a dedicated Global South Cooperation Secretariat that can coordinate knowledge sharing and policy alignment, while simultaneously developing specialized working groups for critical areas like digital infrastructure, climate finance, and sustainable industrialization. Economic initiatives should focus on creating an Investment Fund mechanism and expanding regional manufacturing networks based on India’s successful Production Linked Investment Scheme model. The expansion of India’s digital public goods model through structured knowledge transfer programs, coupled with the establishment of centers of excellence in key sectors like renewable energy and healthcare, will facilitate practical learning and adaptation. Strategic priorities should include launching a skills Alliance for workforce development and creating a unified platform for engaging with multilateral institutions to enhance collective bargaining power. Implementation should follow a phased approach, starting with the formalization of institutional mechanisms and pilot projects in the short term, scaling successful initiatives across regions in the medium term, and ultimately building self-sustaining cooperation networks that establish the Global South as a cohesive force in international arena. Success will depend on sustained political commitment, adequate resource allocation, and effective multi-stakeholder coordination, with India’s role focused on facilitation rather than direction to ensure the development compact remains responsive to diverse regional needs while maintaining core principles of sovereignty, integrity, mutual respect, and shared prosperity.
A New Narrative for a New World Order
India’s comprehensive development model, which integrates economic, environmental, social, and technological dimensions, positions it as a prominent leader in the Global South. By successfully implementing extensive development initiatives while achieving significant economic growth, India provides a valuable framework for other developing nations to emulate. Its focus on digital infrastructure, renewable energy, and inclusive growth not only serves as a guiding template but also emphasizes India’s advocacy for reforms in multilateral institutions that amplify the voices of Global South nations. This approach aims to reduce dependency on Western nations by fostering regional cooperation and sustainable business practices, which will ultimately lead to lower costs and promote indigenous manufacturing tailored to regional demands. As countries within the Global South collaborate more effectively, they can achieve better sustainable development goals, enhance quality of life, and improve living standards through the application of various cross-cutting technologies and innovative approaches. By championing these initiatives, India not only addresses immediate developmental needs but also paves the way for a more self-reliant and resilient Global South.
*Editor, Focus Global Reporter
