India’s leadership has a valuable role to play in a multipolar world

Global growth is projected to hold steady at 3.2% in 2024 and 2025, inflationary pressures have started to subside and the global economy has avoided a recession despite a sharp tightening of monetary policy around the world, demonstrating unusual strength and resilience.

However, significant risks persist, such as climate change and its health impacts, unstable debt dynamics and the ratcheting up of protectionist measures.

Even as fragmentation and polarization are on the rise globally, the most pressing challenges that the world faces—for instance, sustainable growth, an energy transition, creating meaningful employment opportunities and responsible governance of advanced technologies—require effective multilateral cooperation and collective action.

India’s emphasis on a rule-based international order, advocacy of collaboration to solve shared issues and commitment to democratic values position it as a stabilizing force in an increasingly complex global order.

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India’s expanding influence: The country has established itself as a responsible world leader, working alongside an array of stakeholders to champion an inclusive, human-centric and sustainable developmental agenda.

During the covid pandemic, it supplied vaccines and critical medicines to over 100 countries, and its remarkable advances in digital public infrastructure (DPI), highlighting its leadership in digital innovation, offer adaptable models for the world.

Initiatives such as the International Solar Alliance and Global Biofuels Alliance showcase India’s commitment to drive global progress on sustainable development, climate resilience and the energy transition.

India is also expanding its strategic economic partnerships through free trade agreements (FTAs) with various countries across continents. It is liberalizing foreign direct investment (FDI) restrictions in critical sectors to give global investors a chance to tap its vast market.

It has been actively engaging with multilateral institutions such as the United Nations and World Trade Organization, apart from regional frameworks.

It has sought greater north-south and south-south cooperation, reforms for just multilateralism and equitable representation in global governance and financial architecture across influential platforms like the G20 and Brics.

In the first months of its G20 presidency in 2023, India convened the Voice of the Global South Summit to consult with leaders from 125 non-G20 countries, and its push to include the African Union in the Group has been among its key successes.

Rooted in the principles of strategic autonomy and multi-alignment, India’s nuanced approach to diplomacy has allowed it to maintain strong relationships with multiple global powers and engage meaningfully with the Global South.

This unique approach has yielded economic and diplomatic returns—indemnifying it against global fuel prices and supply shocks, strengthening its credibility to act as an effective mediator for conflict resolution and peace talks, and cementing its position as a trusted partner and reliable leader of the Global South and beyond.

Its unique position and ability to balance competing interests and foster dialogue and stability amid rising multipolarity will define its role and relevance as one of the most powerful diplomatic forces on the global stage.

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Leading a new era of sustainable and inclusive growth: India is the world’s most populous country, its largest democracy and fifth largest economy. It has been the fastest-growing major economy for three consecutive years, contributing around 17% of global growth in 2023.

Supported by the government’s strong efforts to maintain stability and enact structural reforms, it is moving firmly on the path to becoming a $10 trillion economy and the world’s third largest in this decade and a developed nation by 2047, with its real GDP growth expected to trace a high path.

With a vast middle class and one of the largest consumer markets in the world, it has emerged as a preferred destination for global businesses and investors and a partner of choice for many countries looking to diversify their supply chains.

The government’s emphasis on building resilience against external shocks, developing critical infrastructure and expanding domestic capabilities through initiatives such as Make in India and it production-linked incentive scheme have boosted its potential to capitalize on new growth opportunities.

The world will soon welcome a new G3 era, in which India joins the US and China as the most eminent countries driving the global agenda.

If India continues to leverage its demographic dividend, invest in critical infrastructure and embrace a digital transformation, it can play a defining role in shaping the future of the global economy with contributions that resonate far beyond its borders.

The path ahead: India’s journey to becoming a world leader is fuelled by its strong economy, its technological acumen and its diplomatic prowess.

Continued stress on broad-based policy reforms focused on inclusive growth, the rapid adoption and responsible governance of new technologies, its labour market and the skilling of its large workforce will be critical.

On the geopolitical front, advancing multilateralism, strengthening regional partnerships, enhancing collaboration with international organizations and leveraging its position as a bridge between developed and developing nations can help India become a global powerhouse and shape a more equitable world order that prioritizes cooperation over competition.

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The World Economic Forum has been a partner and supporter of India for more than 40 years. This relationship has culminated in a multifaceted and meaningful collaboration with key stakeholders for several impactful initiatives that advance shared priorities.

We are proud to support India’s vision, ambitions and endeavours, paving the way for a more collaborative and prosperous future for all.

The author is president and chief executive officer, World Economic Forum