India witnessing ‘Snowball Effect,’ set for exponential growth: WEF President Borge Brende

World Economic Forum (WEF) President Borge Brende observed that India would achieve the strongest growth among the major countries this year, and the nation’s economy is currently experiencing the “famous snowball effect,” which will boost further investment and job creation. Brende emphasised that he is “very confident and optimistic” about India’s economic trajectory but not […]

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Swagath S Senan
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World Economic Forum (WEF) President Borge Brende observed that India would achieve the strongest growth among the major countries this year, and the nation’s economy is currently experiencing the “famous snowball effect,” which will boost further investment and job creation.

Brende emphasised that he is “very confident and optimistic” about India’s economic trajectory but not so positive about the world’s economy. “There have been changes that have resulted in less red tape, a better climate for investments, and also, the advancement of technology is actually taking place in India,” Brende commented.

A bright economic future

One of the largest economies with the greatest rate of growth in the world is India, which currently serves as the G20 president. For many years, WEF has worked closely with India. “The Indian economy is growing at an exponential rate, just like a snowball that has begun to roll. A scenario where more poverty has been eliminated and there are more job opportunities for young people will be seen as a result of the growth, according to Brende. It will also lead to more investments and jobs.

Brende, who was in India for a brief visit, spoke to industry representatives regarding ongoing partnerships and India’s G20 presidency. He interacted with business executives in addition to several Union politicians. “I believe that India can teach other emerging countries a lot. Brende emphasised that India has a more diverse environment of start-ups than any other emerging nation, and that environment is expanding. He claimed that other nations may draw inspiration from this. According to him, India has the most democratic government in the world and is an open society with innovators, entrepreneurs, and freedom of speech.

A global organisation for public-private cooperation with its headquarters in Geneva, WEF is well-known for its annual Davos gathering, which is frequently referred to as the largest gathering of the world’s elite. The Forum works with the most important figures in politics, business, culture, and other spheres to develop objectives for the world, different nations, and industries.

“We at the World Economic Forum see an equally solid future economic path for India. In general, as long as there are no external circumstances that may adversely affect, I am hopeful. War, violence, and complacency are not appropriate at this time,” he declared. The largest economy in South Asia, India, is predicted to grow by 5.8% in 2023 and 6.7% in 2024, helped by strong domestic demand, according to a report released earlier this month by the United Nations. Nevertheless, as stated in the World Economic Situation and Prospects Mid-Year Update, higher interest rates and lower external demand will continue to be a drag on investments and trade in 2023.

Brende claims that India is currently benefiting from its reforms and should draw motivation from this development to push forward with its strategy. In the upcoming years, he emphasised the need for additional infrastructure spending, better regional connections, and an emphasis on skill development. Brende also praised India for how it handled the COVID-19 outbreak, noting that whereas some nations overspent on stimulus expenditure and fell into a debt trap, Prime Minister Narendra Modi’s careful approach allowed India to offer stimulus without falling into a debt trap.